This week's update covers new laws, permit requirements, and regulation news for hosts in:

• New Orleans, Louisiana

• Burlington, Vermont

• Louisville, Kentucky

• New York City, New York

• Arizona

• Fayetteville, Arkansas

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New Orleans

New Orleans City Council plans to introduce legislation banning all residential short-term rentals after a judge temporarily halted enforcement of previously passed rules allowing limited STR permits per block. The legislation needs just four votes to pass but would likely face legal challenges. This comes after a judge stayed the prior rules pending a ruling on their constitutionality next week. The city had been in the process of granting permits from an August lottery under the old rules before the judge's order forced a halt. New permits in commercial areas are already temporarily banned as the council plans permanent regulations this fall.

Burlington

Hosts of short-term rentals in Burlington are suing the city over an ordinance designed to crack down on their operations. The lawsuit argues state law prohibits the city from regulating rental lengths. It also seeks to exempt existing hosts from the new rules. The suit lists a dozen plaintiffs who collectively own close to 30 short-term rentals in the city. A victory could have implications for other Vermont communities looking to regulate rentals. Burlington's ordinance defines short-term rentals as units rented for under 30 days and over 14 days per year. Hosts can only have one rental. The hosts argue enforcing the ordinance will harm them financially, with units going for hundreds per night. The city plans to oppose the lawsuit and says enforcing the ordinance is a priority.

Louisville

Louisville Metro Council is considering new short-term rental regulations for the third time since 2015. The focus is on non-owner-occupied rentals, trying to limit them in residential areas. Existing short-term rentals would be grandfathered in. The new regulations include the "600-foot rule," which would make it harder to get exceptions to operate non-owner-occupied rentals in residential areas. Registration fees would also increase from $100 to $250 annually to fund enforcement. Council members are still finalizing details around rental limits for events and guidance for rural areas. A final vote could be delayed to refine the ordinance.

New York City

New York City's new short-term rental regulations went into effect on Tuesday, resulting in a 70% drop in the number of Airbnb listings in the city - from 22,000 to 6,841. As of Tuesday, only 290 short-term rental permits have been approved out of over 3,800 applications. This has led many hosts to decide between keeping their illegal listings up and paying a potential $5,000 fine or removing their listings while they wait for their application to be approved. In response to the law changes, Airbnb has started blocking unregistered bookings, but reservations made before December 1 were not canceled. However, any reservations after December 1 for non-approved hosts have been canceled, and guests have been refunded. The city's aim is to increase housing availability and improve neighborhood safety with the new regulations. It remains to be seen whether NYC's strict regulations will have implications for other major tourist destinations struggling with short-term rentals.

Arizona

Lawmakers and cities say they will try again to pass legislation giving Arizona municipalities more power to restrict short-term rentals after a proposal put forward by Scottsdale passed unanimously. Cities want to limit STRs to free up housing supply, but an existing law prevents Arizona cities from restricting STRs based just on their classification. Groups like realtors oppose new limits, citing property rights concerns. But cities say the current situation infringes on residents' rights near disruptive STRs. Sedona and Scottsdale, which have high concentrations of STRs, want caps on STRs. But, things get tricky as previously Arizona brokered a deal with Airbnb and Expedia, agreeing to refrain from lobbying for changes to the existing laws, which specify no cap limits. A bill last session didn't get a hearing, but its sponsor plans to revise and reintroduce it.

Fayetteville

The city of Fayetteville, Arkansas, is nearing its cap of 475 standalone short-term rentals allowed to operate legally. The city council implemented regulations for short-term rentals in 2021, requiring licenses and inspections. There are currently 395 licensed rentals, with 34 more pending approval. An audit found 183 operating illegally. At a recent council committee meeting, members agreed that once the cap is reached, illegal rentals should promptly have water service shut off. This would avoid lengthy criminal court procedures. They aim to formally propose this rule soon, as the cap was meant to address the lack of long-term housing.