Plaintiffs in a longstanding federal lawsuit against New Orleans over its short-term rental rules filed for a temporary restraining order in US District Court, with legal counsel Dawn Wheelahan saying they wish to keep their rights to run short-term rentals under their current permits while Judge Ivan Lemelle considers the law's constitutionality. Wheelahan expects a ruling by Aug. 31, when the existing permits are slated to expire. Permits granted under the new rules are scheduled to go into effect in September. The same plaintiffs also persuaded the 5th Circuit Court of Appeals to overturn an earlier set of regulations limiting short-term rental permits to city residents. This prompted the drafting and passage of the new law, against which plaintiffs filed a revised complaint that the ordinance unfairly barred them from obtaining licenses. The law allows one permit per square block in residential areas, though the Council can grant up to two additional permits on a case-by-case basis. Almost 2,000 homeowners applied for the new short-term rental permits, and over 25% of them had to enter the Aug. 14 lottery because they resided on blocks with multiple applicants.
New Orleans Times-Picayune (08/22/23) Ben Myers