Q & A about New Orleans’ Non-Commercial Short-Term Rental Lottery
Q: Why was there a NSTR Lottery?
A: Under the new Non-Commercial Short-Term Rental (NSTR) rules, only one such rental can be permitted within each square block. The lottery system was chosen to award NSTR permits in cases where there was more than one NSTR applicant per square block.
Q: What is a square block?
A: In the map below, there are two full square blocks shown, one red and one green. Each of the squares is permitted to have one NSTR permit (unless exceptions are granted to allow more). Because of the square system, there could be two NSTRs on opposite sides of the street from one another, but not on the same side of the block.
Q: When was the Lottery Held?
A: On the morning of August 14, 2023, the City of New Orleans held its first ever lottery to award NSTR permits, otherwise known as permits allowing residential short term rentals.
Q: I submitted a NSTR application, why wasn’t I entered into the lottery?
A: There could be a few different reasons why:
- First, if there was only one NSTR applicant on a square block, no lottery was necessary. In this case, assuming your application was not denied (possibly due to problems with your application forms or unresolved infractions or citations concerning your property), the City should be in contact with you to pay for your license.
- Second, if there was an existing Bed and Breakfast on your square block, the City is prioritizing B&Bs for NSTR permits. This means that a square with one existing B&B and one residential STR applicant would automatically award the NSTR permit for that square to the B&B. If this is your situation, you will be able to apply for a special exception to receive a permit.
- Finally, third, it is also possible that you were not entered into the lottery because your application was denied or was still under review when the lottery was held.
Q: How large was the lottery?
A: In total, permits for almost 230 square blocks were determined via the lottery process. Of these blocks, some saw as many as 4 applicants vying for a single permit.
Q: How did the lottery work?
A: Every square block was assigned a five digit lottery ID number and every individual applicant in the lottery was given a reference code and a corresponding bingo ball number. While every reference code is unique, the bingo ball numbers repeated (meaning, for example, that more than one applicant was assigned ball B1 and so on).
Q: Where are the results of the lottery posted?
A: The City of New Orleans recorded the 3 hour lottery selection process and it is available on the City Council’s Youtube channel. However, for reasons unknown, the City has not yet released a written list of the lottery results. The Stow Firm has already reached out to those who did not have their bingo ball drawn first about possible next steps. Many of these applicants were not even aware of the lottery results due to the City’s lack of transparency and accessibility.
Q: Can you describe how the lottery winners were drawn?
A: During the lottery, the square block lottery ID number was announced, the reference codes and corresponding ball numbers were read and shown on a large poster board and then the balls were tossed in the cage. Balls were then selected in order, with a first place, second place, third place and so on and announced.
Q: Why did the City draw bingo balls after a winning ball was selected?
A: The order of selection is important because if the first place winner fails to pay the required fees within 5 calendar days, then they forfeit the permit and the second place winner has five calendar days to pay and so on.
Q: How do I figure out when the 5 calendar days is up?
A: The 5 days starts once the winners receive an official approval email from the City, not from the date of the lottery itself.
Q: If I won the lottery, would the City have already told me?
A: Not necessarily. As of this posting, only about half of the first place lottery winners have received approval emails from the City.
Q: What should I do if I received an approval letter?
A: If you receive an approval email from the City (either because you won the lottery or because yours was the only accepted application for your square block) it is very important to pay the required fees promptly if you want to get a NSTR permit.
Q: What happens if I did not win the lottery?
A: If you lost the lottery, or had an existing B&B on your block, you should receive a denial letter from the City containing an application for the special exception process.
Q: If I received a permit denial letter, do I have any other options to get a NSTR permit for my property, other than the exception process?
A: If you received a permit denial letter after participating in the lottery (or due to a B&B on your square block), the exception process is your only other opportunity to receive a NSTR permit at this time.
The Stow Firm is accepting clients interested in representation for the multi-step special exception process. We are also working to make more information about the exception process available so check back soon.