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NEW ORLEANS - The New Orleans City Council has passed legislation filed by Council Vice President JP Morrell for an Interim Zoning District (IZD) to be established city-wide to control the influx of new short-term rental (STR) applications.
The passage of the IZD follows the Federal Appellate Court ruling, which ruled that the New Orleans ordinance barring out-of-state owners from possessing “whole home rentals” is considered unconstitutional. The ruling opens the floodgates for investors to convert residential homes into neighborhood-based enterprises, further exacerbating an already debilitating affordable housing crisis.
“Today’s passage of the IZD allows for the City Council to address the deluge of new applications flooding the system,” stated Council Vice President JP Morrell. “We are not going to rush through a legislative process that will affect our residents' quality of life and livelihood for generations to come. Reevaluating the Comprehensive Zoning Ordinance (CZO) is going to take time, and this IZD will ensure that the City Council has the ability to get the job done right. This legislation will lead to STR applications expiring at the end of the IZD period so that all STRs will be required to adhere to the new, more restrictive STR ordinance that will be in place at the end of the IZD period. The goal is to bring all STRs into the more restrictive regime at the same time.”
“The proliferation of short-term rentals in our neighborhoods due to lax regulation and enforcement is drastically affecting our housing affordability," said Council President Helena Moreno. "Regardless of the court’s ruling, this Council must act to protect our neighborhoods and our people from further displacement. I applaud Council Vice-President Morrell for his tenacity and leadership in addressing the issue.”
Further, the City Council will be considering requirements for every residential STR in the city of New Orleans to have significant signage indicating that the property is designated for short-term rentals, as well as additional information such as who the owner is, the permit number, the sites the property is listed on and with a 24/7 accessible phone number tied to a responsible person who is required to address complaints.
“This additional stop-gap measure is necessary to increase accountability during the STR revision process and is a preview of how definitive and restrictive the new STR regime will be after the IZD expires,” said Morrell. “Failure to comply and address complaints lodged against a property will lead to termination of the permit.”
Review the IZD filed by Councilmember Morrell here.
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