2026-09-10 · Louisiana · Courts

What happened. Two published Fifth Circuit decisions eleven months apart have redrawn New Orleans's short-term rental scheme. A Louisiana condominium or subdivision association needs the map for one reason and one reason only: to know which city rules an owner can still be cited under, and to keep that question separate from its own covenants.

October 2025: what was struck

Hignell-Stark v. City of New Orleans (“Hignell-Stark II”), No. 24-30160, reported at 154 F.4th 345, decided October 7, 2025 (Edith H. Jones, J.; before Elrod, C.J., Jones and Stewart, JJ.), on appeal from the Eastern District of Louisiana.

The opinion's introduction lists three constitutional problems:

“We conclude that the STR scheme (1) prohibits 'business entities' from obtaining an owner and operator permit in violation of the Equal Protection clause, (2) unduly restricts STR advertisements contrary to the First Amendment, and (3) prohibits out-of-state residents from obtaining and then maintaining an operator permit in violation of the dormant Commerce Clause.”

The disposition reverses on only two of them. Quote this, not the introduction:

“The judgment of the district court is AFFIRMED in part; REVERSED in part specifically as to (1) §§ 26-617(a)'s and 26-619(a)'s prohibition on owner or operator permits to business entities and (2) § 26-618(a)(3)'s requirement that each advertisement for an STR list only one dwelling unit; and REMANDED for further proceedings.”

The residency requirement survived, on a narrowing construction the court adopted:

“Because the Code's language is 'readily susceptible' of the City's interpretation, we conclude that the Code's language requires that an operator reside on the STR property only while it is actively occupied by guests.”

Secondary coverage of this case frequently reports that the Fifth Circuit struck the residency rule. It did not.¹

1. Hignell-Stark v. City of New Orleans, No. 24-30160 (5th Cir. Oct. 7, 2025) — published opinion ↩
2. Bodin v. New Orleans City, No. 25-30524 (5th Cir. Aug. 5, 2026) — published opinion ↩
3. City of New Orleans — Commercial Short Term Rental Owner’s Permit application ↩
4. Complaint, DeSelle v. Lafayette City-Parish Consolidated Gov’t, No. 6:25-cv-00835 (W.D. La. filed June 16, 2025) ↩