Short-term rental owners face regulatory challenges in major US cities
Owners of short-term rentals in New Orleans have requested a federal judge to issue a temporary restraining order to block the enforcement of new permitting rules in residential areas. The plaintiffs claim that a city attorney had agreed to halt enforcement while the constitutionality of the new laws was being debated. Despite the deadline passing without a ruling, the city proceeded with the new regime, including a lottery to determine which homeowners would receive permits. The new law allows one permit per square block in residential areas, with the possibility of two additional permits on a case-by-case basis. The plaintiffs have raised constitutional objections to various provisions, including a live-in operator requirement and a prohibition on corporate ownership.