A marathon city council meeting on the future of Airbnb in Jersey City ended early Wednesday morning with the approval of a plan that will more tightly regulate the short-term rental industry.

After nearly nine hours of public comment and council discussion, the city’s governing body voted 7-2 in favor of an ordinance sponsored by Mayor Steve Fulop’s administration and council members James Solomon and Mira Prinz-Arey.

The ordinance institutes an annual 60-day cap for short-term rental properties if the owner is not on site. The new law will also bar Airbnb and other short-term rentals in buildings with more than four units and phase out existing short-term rental contracts by Jan. 1, 2021.

The proposal was one of two competing ordinances up for a second vote during Tuesday’s special meeting. The other plan, sponsored by Councilman Michael Yun, would have granted legacy status to all current short-term rentals, regardless of how many units there are in the building.

Yun’s plan was tabled and never voted on.

Yun, who was one of two council members to vote no, pointed to the council’s 2015 passage of an ordinance that slapped a 6% hotel tax on short-term rentals.

"We're going to make the same mistake again,” Yun said. "Why are we in such a rush to pass an ordinance?"

Richard Boggiano also voted no on Solomon and Prinz-Arey’s plan, which was approved at 2:30 a.m. Wednesday.

Sharon Solomon (no relation to James Solomon) was one of many who spoke against the ordinance. She said it felt like the rug was being pulled from under her after she invested in a building.

“We’re in the doghouse if we can’t continue,” Robert Drone said about running his Airbnb.

City Hall says the ordinance establishes viable apartments for short-term rentals at the market rate, eliminates hotels that have been created in apartment buildings, and focuses on owner-occupied buildings to increase accountability from landlords.

Prinz-Arey touted the one-year grace period that her ordinance will provide owners of short-term rentals affected by the increased regulation.

“People who own their property can still make ends meet if they need to,” she said.

Solomon has said the plan protects renters by preserving housing stock and lowering rent prices.

To operate a short-term rental under the ordinance, property owners will be required to obtain a permit through the city’s Division of Housing Preservation. Each permit is valid for one year and must be renewed annually.

The ordinance will allow short-term rentals in condominiums if the local board permits it. Meanwhile, owners of buildings with four or fewer units will be permitted to rent out up to two of them on platforms like Airbnb if they live on site.

The new provisions also bar renters from operating short-term rentals. However, if an individual is currently using their leased home as a short-term rental, they may continue to do so until their lease expires or Jan. 1, 2021, whichever occurs first.

Sawyer Smith, a real estate agent and founder of Sawyer Smith Residential, says investors who bought properties to run as Airbnbs will either come up with a new model or sell.

“They’ll probably sell,” Smith said. “Their income would have been substantially higher with Airbnb over a normal 12-month lease.”

The new law will take effect on Jan. 1, 2020.