A Brooklyn councilmember scaled back a bill that would have allowed more homeowners to rent units on Airbnb and other short-term listings platforms.

The city has proposed rules to make it hard to run a short-term rental without a city-issued license. Third-party data suggests thousands of owners rent out their homes without one.

This home was once the residence of David Letterman, who grew up in Broad Ripple before rising to fame as a late-night TV ...