In the past, I have written on the continuously evolving regulations in New Orleans governing the operation of short-term rentals (see “From Single-Family Homes to Condos, the Regulations For Short-Term Rentals in New Orleans” and “The Short-Term Rental Saga in New Orleans Continues To Unfold”). The law in this field continues to change.

On August 8, 2019, the New Orleans City Council voted unanimously to approve final versions of two ordinances (Nos. 32,685 and 32,691) that overhaul short-term rental regulations in the city.

Highlights of the New Legislation for Short-Term Rentals

  • Commercial Short-Term Rentals, which do not require a homestead exemption, are allowed in most commercial and mixed-use districts. No more than 25% of all units on a lot or in a single building can be permitted as Commercial STRs. This cap does not apply to VCE (7 blocks of Bourbon), to structures that front on Canal Street, or to certain other districts.
  • Residential Short-Term Rentals are allowed in most residential areas but require a homestead exemption. There are three varieties: Partial (only part of a dwelling can be rented with one bedroom reserved for the owner), Small (only one unit and up to five bedrooms can be rented), and Large (up to three units per lot of record and six bedrooms can be rented; Large Short-Term Rentals are not permitted in every area in which Partial and Small Short-Term Rentals are permitted).
  • STRs of all types are banned in the Garden District and the French Quarter, except for VCE (7 blocks of Bourbon).
  • Platforms must hold their own permits and must remove any listings that violate the STR rules.
  • Permits are not transferrable and must be renewed annually.
  • The new regulations go into effect on December 1, 2019. City staff have indicated with respect to the caps that those who are already permitted under the old rules will have a legal nonconforming use that they can continue after the new rules go into effect.
  • Additional regulations related to affordable housing (such as a “one-for-one match” that would require developers to add one affordable housing unit for every short-term rental license) are likely to be proposed in the future.

The City Council’s August 8, 2019 PowerPoint explaining the ordinances and amendments is available here:

2019 STR Legislative Grouping>>

Filed under: Commercial and Business Litigation, Residential Real Estate
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