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New Orleans may suspend short-term rental licensing

August 24, 2022 GMT

NEW ORLEANS (AP) — The New Orleans City Council will consider suspending the issuing of new short-term rental licenses after a federal court ruling that struck down a key provision of current city law, a council member said Wednesday.

Council member Joe Giarrusso told The Times-Picayune/The New Orleans Advocat e that the proposal won’t affect residential short-term rental operators who have a current license.

The temporary prohibition could be adopted as early as Sept. 1.

On Monday, a federal appeals court struck down a requirement that effectively limits short-term rental licenses to people living in the city. The 5th U.S. Circuit Court of Appeals said the provision unconstitutionally excludes out-of-state property owners from having licenses.

Officials adopted the 2019 rules in hopes of stemming the spread of “whole-home” vacation rentals. The rule came amid complaints that the rentals were driving up property costs and tax assessments and driving away full-time residents from historic neighborhoods.