A New York City Airbnb host was shut down under the short-term rental law. He's now renting his basement illegally on Facebook and making crucial income after he was laid off.

• A New Yorker's Airbnb business thrived until a new city law shut it down.
• NYC moved to restrict short-term rentals, in part to address the city's housing shortage.
• The former host now rents his basement through Facebook and friends, earning income after a layoff.

After Paul and his wife bought their townhouse in Astoria, Queens, in 2013, they decided to transform their basement into a guest suite for visiting family and friends.

To help pay off the loan they took out for the renovation, the couple rented their basement — which has a bedroom, living space, and a kitchenette — on Airbnb for short-term stays in between family visits. They were quickly inundated with eager guests. There aren't many hotels in Astoria — a largely residential neighborhood — and the few that exist are "dinky" and expensive, Paul said.