Advice needed: host cancelled reservation. Moneyback or...?

[Настя0]

Hello, maybe someone can give an advise on our situatuion?
We, group of 5 friends, reserved nice apartment 3 months prior to our trip. A bit less than a month prior trip host messaged us that this apartment won’t be avaliable. Host was sort of rental agency and tried to offer us his alternative listings to escape cancellation penalties. But none of that options seems to really suit us. So we found for ourselves another place to stay.
So here is dillema: We could just request moneyback. But we actually have no complaints about the host and don’t want him to get cancellation penalties - he was responsive and sincerely tried to solve the situation. We got a friend who needs to rent apartment on the same dates. We could agree on reservation change and rent some apartments for him instead but should we? Whether it conforms to the airBnB rules? And how best to proceed with the situation?
Thank you.

[Clare0]

@Настя0  If the host is unable to accommodate your reservation, then he needs to cancel.  When the host cancels Airbnb will refund your money and will add 10% compensation.  Do not cancel yourself as you will forfeit the Airbnb service fees.  

If the host is unwilling to cancel at his end, contact Airbnb and let them know the situation.  Here's how: