NEW ORLEANS (WGNO) – New rules have now been set for short-term rentals in the City of New Orleans.

The city council’s decisions come after months of debate and are required by a federal judge.

Thursday’s council meeting was packed full of short-term rental owners and housing advocates with the council providing two hours for public comment versus the usual 20 minutes.

Councilmembers aimed to please short-term rental owners and those against STRs while addressing quality of life issues in the city.

“Whole-home rentals are especially problematic and detrimental,” Councilwoman Lesli Harris said. “To address this issue, the code will require the operator of the short-term rental to live on the property full-time.”

With the new rules, those hoping to operate an STR will be entered into a lottery system to determine who gets the permit.

However, STR owners say that’s not fair.

“Even though I’ve done everything that they want me to do and I’m absolutely dependent on this income, they’re going to put me into a lotto, uptown STR owner Cindy White said. “They claim it’s an equitable lotto, and my suggestion is that lottos are, by definition, not equitable.”

Because of those concerns, Councilman Freddie King amended one of the ordinances to allow those who don’t win the lottery the opportunity to legally own a partial short-term rental pending a $500 application fee and other stipulations.

At most, three partial STRs would be allowed per block square.

“I look at this as an opportunity to allow the good actors to own a partial short-term rental while giving the community, the neighbors the ability to be at the decision-making table,” Councilman Freddie King explained.

Still, some say they would like to see a complete ban of short-term rentals, citing the affordable housing crisis.

“We have a flourishing tent city a few blocks down on Claiborne that’s full of working poor; they actually have jobs, and it’s unacceptable,” Seventh Ward resident Arséne DeLay said.

Below are some of the regulations found in the newly passed code ordinance:

  • Permit must be held by natural person.
  • 1 permit per person
  • Annual renewal process (Permit will only be renewed if fines, etc. are paid.)
  • Noise-monitoring device required for residential short-term rentals
  • Complaints must be resolved within an hour.
  • Three-strike rule regarding quality-of-life violations
  • After three strikes, permit holder is put on a 5-year probation period.
  • Public dashboard will contain judications and operator’s personal information