New Orleans Councilmember Palmer Proposes Vacation Rental Ban

Update 12/18/18: Councilmember Palmer has delayed the preliminary vote on this measure to January.

Today, New Orleans city councilmember Kristin Gisleson Palmer released details of her proposal to ban non owner-occupied short-term rentals outside of commercial zones, among other restrictions. The city council will hold a preliminary vote on the draft in their December 20 council meeting. If passed, the ordinance could wipe out nearly half of the existing permitted rentals in the city.

The following is the licensing structure detailed in the city council’s post on nola.gov:

Residential License Requirements:

– Homestead Exemption

– Owner must be on property during duration of STR rental

– Three license limit per property

Commercial Single Unit:

– Homestead Exemption

– One license per unit

Commercial Small Scale: (commercially zoned property with fewer than 5 residential units)

– Must reserve first floor for commercial use

– One license per residential unit

Commercial Large Scale: (commercially zoned property with 5 or more residential units)

– Must reserve first floor for commercial use

– 1 license per residential unit

– STRs cannot exceed 30 percent of residential units.

– Each STR unit must be matched with an affordable housing unit.

Philip Minardi, HomeAway’s director of policy communications, said in a statement that New Orleanians want a holistic approach that addresses community concerns and protects locals’ right to earn income through their vacation rentals. “Unfortunately, the extreme proposal released today does not reflect that widespread desire and takes the conversation around fair and effective policies in the wrong direction.”

“The Palmer Ban, if passed, would place New Orleans on a list of cities that have missed the mark when it comes to short-term rental rules,” he continued. “San Diego’s primary-only law was recently repealed following an outcry from local residents, and Palm Springs voters voted down their draconian primary-only law this summer. Palmer’s plan would place New Orleans at odds with forward-looking cities—like Seattle and San Antonio—that have recognized successful policies must include a legal pathway for all types of responsible short-term rentals to operate.”

Palmer’s proposal follows the September recommendation by the city planning commission based on a short-term rental study. The city council ordered the study in May and at the same time issued a moratorium on accepting new short-term rental permits to most non-owner-occupied properties in an “Interim Zoning District” for nine months. During that time, 471 permit applications have remained in limbo.

Under the current ordinance passed in April of 2017, short-term rentals with approved permits can operate in certain city zones based on rental type. Accessory short-term rentals in which the owner remains on site can operate in every zone (except the French Quarter) with no limit on the number of nights available to rent. Temporary short-term rentals in which the owner is not present may be rented for a total of 90 nights per year, can operate in most zones, and must have an in-town property manager available at all times. Commercial short-term rentals are allowed in nonresidential zones even if their owners are not present, and there is no limit to the number of nights that can be rented.

Of the 3,708 active permits listed in the city’s database, 1,217 are for accessory rentals, 1,087 are for commercial rentals, and 1,400 are for temporary rentals.

Read more:

HomeAway Proposes New Orleans Short-Term Rental Policy Amid Industry’s Uncertain Future in the City

NOLA Short-Term Rental Study Proposes Severe Restrictions

A Case for Vacation Rental Advocacy: The direct impact of local regulations