NEW ORLEANS (WGNO) — A federal judge issued a ruling in favor of the City of New Orleans in regard to litigation surrounding residential short-term rentals on Wednesday, Feb. 28.
City leaders enacted STR rules in 2019 that include a residency requirement, with a homestead exemption, on a rental property.
The owners of some rental properties, including some businesses, sued, prompting the city to shut-down STR.
U.S. District Judge Ivan Lemelle has ruled that most of the city’s rules are legal, like having an owner live on-site and forbidding corporations from owning residential short-term rentals.
“We’ve been fighting from the beginning to stop corporations from taking over our residential neighborhoods, and this ruling vindicates our efforts to protect New Orleanians,” said Councilmember-At-Large Helena Moreno.
Councilmembers in favor of short-term rental rules said the judge’s decision will help preserve the availability of the city’s housing stock, as well as the charm of individual neighborhoods.
“The City’s stated purpose was to seek the preservation of permanent housing stock, balance economic opportunity, reduce the lack of affordable housing, create a level playing field and ensure sufficient tax revenue collection. By mitigating the disruptive effects that unmonitored STRs can have on neighborhoods, the City of New Orleans and Federal Court is protecting the livability and quality of life of New Orleans’ residential neighborhoods,” said Councilmember Lesli Harris.
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