NEW ORLEANS - As the City Council deliberates implementing new regulations for short term rentals (STRs), a resolution introduced by Council Vice President Helena Moreno emphasizes the need to also address key issues regarding STRs: platform accountability, enhanced and reliable enforcement and insufficient fees meant to expand affordable housing. All members of the Council have now signed on as co-authors of this resolution.
While numerous studies indicate that STRs have some impact on affordability in the housing market, the current fee allocated to the Neighborhood Housing Improvement Fund (NHIF) to help expand affordable housing is only $1 per night.
"The current fee arrangement generates a pitifully insufficient amount of money to help promote and develop affordable housing. All fees and fines regarding STRS should be sent to NHIF, and those fees should be increased substantially," said Council Vice President Moreno.
Along with recommending additional funding to be allocated into the NHIF, the resolution also directs the Chief Administrative Officer to determine the feasibility of creating a unified STR enforcement office for improved round the clock enforcement and increased efficiencies. The resolution recommends that the office should be predominately funded with hotel/motel taxes collected into the New Orleans Quality of Life Fund that the City is authorized to use for STR enforcement. The State fund has generated at least $6.2 million since its inception July 2017 and is projected to generate $4.2 million in 2019.
"Enforcement is split between many different City departments, as is the funding for enforcement. Centralizing work is a positive step toward creating direct efficiencies. Ultimately, however, in order to ensure the enforcement process is smoother and more thorough, there needs to be enhanced platform accountability," said Moreno.
The resolution also directs the Director of Safety and Permits to submit to the Council recommendations to address platform data sharing, platform registration, tax and fee remissions by platforms and other improvements the department deems necessary.
"Thursday's vote will just be the first step in a process to ensure that STRs are a benefit rather than a detriment to our neighborhoods. It will be critical to create strong rules and regulations for platforms, and leverage any and all opportunities to create affordable housing," said District "C" Councilmember Kristin Gisleson Palmer.
"In order to have an STR policy that effectively monitors the program and benefits the citizens of the city, it's necessary that multiple safeguards be put in place. This resolution starts that process," said District "B" Councilmember Jay H. Banks.
"This resolution is a strong step towards more effective management of the impact of STRs Enforcement is an incredibly crucial element of any plan and is paramount here to the success of new STR legislation. This plan must run parallel to a focus on creating affordable housing units and providing pathways to development," said Council President Williams.
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Contact:
Andrew Tuozzolo
Office of Councilmember-at-Large Helena Moreno
AVTuozzolo@nola.gov
504.281.9882