New Orleans' short-term rental (STR) regulations are back in federal court, as plaintiffs in ongoing litigation have filed a fresh class-action complaint aiming to strike down the city’s new rules. The plaintiffs claim at least nine provisions of the new laws are unconstitutional, including those related to an upcoming lottery for awarding permits under a new one-per-square-block restriction. It’s unclear if the first of the quarterly lotteries, planned for Aug. 14, will be able to move forward. The new law and the litigation only pertain to rentals in residential areas; commercial STRs fall under a different permitting scheme. Plaintiffs succeeded in killing the city’s previous law, which required that STR owners live in the buildings they rent out. The U.S. 5th Circuit Court of Appeals last year ruled that provision unconstitutional, finding the on-site owner provision discriminated against out-of-state owners.
NOLA.com (05/18/23) Ben Myers