Fifth Circuit Ruling on New Orleans Short-Term Rental Ordinances

In this legal opinion, the Fifth Circuit Court of Appeals upholds two New Orleans ordinances designed to regulate the city's short-term rental market. The court first determines that a zoning rule limiting licenses to one per block is not an unconstitutional taking of property, as it neither physically occupies the land nor severely impacts the owners' economic interests. Additionally, the judges rule that the Communications Decency Act does not protect platforms like Airbnb from local laws that prohibit them from processing fees for unlicensed rentals. The court concludes that requiring platforms to verify license status through a municipal system is a lawful exercise of city authority rather than an interference with internet speech. Ultimately, the decision affirms that the city may prioritize residential quality of life through these specific legislative restrictions.