
NEW ORLEANS (WVUE) - A recent federal court ruling has thrown a wrench in the New Orleans City Council’s efforts to regulate short-term rentals, leaving the fate of these regulations in limbo, at least for now.
While some council members call the ruling a temporary setback, property owners and their attorneys see it as a victory that may become permanent.
“It’s a temporary ruling,” Councilman Eugene Green said. “It gives us an opportunity to review and work with the courts.”
The proliferation of short-term rentals has transformed the landscape of many neighborhoods in New Orleans. The city council has long grappled with the need to establish and enforce limitations on short-term rentals amid concerns that their unchecked growth could erode the fabric and culture of the communities.
“It’s not just a matter of ‘let’s just do business where we can,’ Let’s do business and protect what makes our city stronger,” Green said. “That’s, many times, our neighborhoods.”
Attorney Dawn Wheelahan argued vehemently that property owners also have rights that must be considered. Her efforts led to the crucial decision by Federal Judge Ivan Lemelle to temporarily halt the city’s regulations that imposed limits on short-term rentals. The pause will allow property rights issues to be examined in a court hearing.
“I think the city needs to start focusing on some of the real problems we have around here,” Bo Masurek said.
Wheelehan praised the judge’s ruling, saying she believes it correctly upholds property owners’ rights to lease their properties for any duration they choose.
“They’re not finding the tenants to rent. They need to do something and I’m a big fan of bed and breakfasts,” said April Sawyer.
Council members remain concerned about the changing character of New Orleans neighborhoods due to an abundance of short-term rentals. They say the fight is far from over and are watching closely as the litigation plays out in federal court.
The next hearing is set for Sept. 14.
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