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NEW ORLEANS — Following the issuance of a temporary restraining order (TRO) against the City regarding new non-commercial short-term rental (STR) regulations passed in March 2023, Council President JP Morrell and Council Vice President Helena Moreno will introduce legislation on first read at tomorrow’s regular Council meeting to ban all non-commercial STRs in residential areas.
The compromise previously forged by the City Council stipulated one permit per city square block, with up to two exceptions per square block pending a neighborhood participation program. Recent litigation and a pending ruling from a federal judge have the potential to throw out the March 2023 compromise from the Council completely.
“After operating for six months under new regulations without any objections from the courts, I am baffled that the federal judge granted this TRO, which completely dishevels the solution enshrined by the City Council,” said Council President JP Morrell. “When we passed the current STR regulations in March 2023, I made myself very clear – We will not further negotiate with an industry that refuses to be regulated. Cities across the country are struggling to grapple with predatory companies such as Airbnb and Vrbo that want their cake and eat it too, all at the expense of vulnerable residents who struggle to find housing. If the federal judge decides that the current regulations are insufficient, then we as a legislative body will resolve this matter once and for all.”
“We have tried repeatedly to find a path for common sense protections in neighborhoods. Unfortunately, business interests have instead chosen to protect their profits,” said Council Vice President Helena Moreno. “We won’t allow corporations to overtake our neighborhoods. Therefore, I feel like the only choice left is to ban non-commercial STRs. This is not where I wanted to be, and the blame lies solely on those pursuing to strike regulations.”
“Over the course of the last several months, the Council has attempted to craft laws to comply with the Fifth Circuit’s rulings,” said District 'B' Councilmember Lesli Harris. “Plaintiffs, who are residential STR owners, challenged those new laws - essentially cutting off their nose to spite their face. We await the Court’s directive as to whether the Council will need to take this action to ban all non-residential STRs.”
“The legislation prohibiting residential STRs is being introduced in advance of the federal court’s ruling on the constitutionality of our current laws,” said District ‘D’ Councilmember Eugene Green. “We will await the court’s decision and work collectively as a Council to make any adjustments that may be necessary. We will continue to work with our legal department to pass legislation that protects the integrity of our neighborhoods under the constitutional parameters required by law.”
The three legislative instruments include a code ordinance removing all non-commercial STR regulations from City code, an IZD prohibiting non-commercial STR permits, and a motion directing the City Planning Commission to eliminate non-commercial STRs from the CZO.
All legislation will be introduced on first read tomorrow, Thursday, September 7, at 10 a.m. during the regular meeting. The public is welcome to attend in person in Council Chambers at City Hall or watch online at the New Orleans City Council’s YouTube page.
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