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Why New Rental Property Regulations Would be Detrimental

Recently, New Orleans City Councilmember’s, LaToya Cantrell and Jason Williams, announced a proposal for new city ordinances that would force landlords to not only register their rental properties but require regular inspections of the property as well. Those in favor of this proposal are saying that it is about time that tenants have more power in New Orleans. They are claiming that Louisiana has one of the weakest tenant rights and that the Greater New Orleans Fair Housing Action Center has reported more than 50% of the city’s rental properties are not up to code.

What Is Exactly Being Proposed By Cantrell & Williams?

The proposal that Cantrell and Williams have set forth to the city council would require residential property owners with rental properties to adhere to a number of rules. According to Williams at the February 11 New Orleans City Council’s Community Development Committee meeting, “Fixing this problem is vital to the health of this city and the evolution of the city. We’ve ignored poverty and deplorable housing for a very long time…when slum landlords are forced to fix their property, it helps the rest of the neighborhood.” Here is what is in the proposal:

  1. Register all residential units offered for lease with the city of New Orleans. This includes singles, condos, doubles, and multi-family, with the exception of owner occupied doubles.
  2. Pay New Orleans a registration fee for a “certificate of occupancy” every three years for each rental unit. The fee is supposed to fund a “department of inspectors” employed by New Orleans, or a third-party inspection company hired by the city specifically for this purpose.
  3. Submit periodic inspections by the city (or a third-party inspection company contracted by the city).
  4. The certificate of occupancy would be issued to the property owner and not the property, therefore, if the property is sold, the new owner must apply for a transfer of the CO within 90 days of ownership change. There will be a fee that applies to each transfer.
  5. Although there are no specific details as to what the criteria is for “habitability,” there will be fines for landlords that are not compliant.
  6. Tenants would have the opportunity to call for an inspection of their unit arbitrarily with a cost that is probably passed onto the landlord.

Landlords Concerns Over New Housing Proposal

There are a number of concerns by not only landlords in New Orleans, but also the entire city as a whole. Landlords are concerned that although this proposal is supposed to ideally create a better quality of life for tenants, it seems that it will probably also punish “good” landlords, while not deterring “bad” property owners who defy the laws regardless.

Why The New Housing Proposal is Bad for New Orleans

In a city where rents and home prices are steadily increasing, while living wages and salaries remain constant, it is becoming increasingly difficult for working residents and families to find livable housing within city limits. With this proposal, landlords will see fees and costs rise, ultimately passing it on to the tenants, resulting in even higher rents. Aside from this:

  • Under the current regulations in New Orleans, a tenant is able to make a call to the city to report unlivable conditions and request inspection. No mandatory inspections are necessary, and under current law, a tenant or landlord’s permission is required to enter a private residence except for emergencies.
  • By creating a new department, the city would have to dish out additional salaries when the city is already hard-pressed to hire necessary police force, among other necessities.
  • More money being collected, more departments to fund. This could lead to more opportunity for cronyism.
  • Is this a new tax for residential landlords?
  • Investors from outside of New Orleans, or even those who do already invest within the city limits, will find it less attractive to invest here than in other parishes. Do we want to drive these good landlords, and investors, away?

These are just a few reasons why this proposal, as is, would not work in the city of New Orleans. Whether you are a landlord, a renter, a property owner, or just simply a resident of the city, this is not a proposal we want moving forward.

Do You Have Questions About the Future of Your Landlord or Tenant Status?

I’ve stood up for landlords in the past. I am against these kinds of regulations and I have already called Mr. Williams’ office to voice my dissatisfaction. If you are a current tenant in New Orleans or Jefferson Parish living in what you would consider unlivable conditions, but have not been able to get your landlord to make the necessary changes or updates, you should consider seeking a tenant lawyer. Crescent City Law has extensive experience working with renters to ensure that their human rights aren’t violated by the conditions in which they must live. Call Crescent City Law at (504) 264-9492 for a free initial consultation. We are available in the evenings, weekends and off-site. Spanish, French, Mandarin Chinese or Cantonese translators are also available upon request.

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