The City of New Orleans has announced a timeline for mandatory registration for all residential rental properties in the City. The new requirement is part of the controversial Healthy Homes ordinance, which the City says Is designed “to protect the health, safety and welfare of the public by ensuring persons who reside in Orleans Parish occupy safe and habitable dwellings.”

The email announcing the timeline followed the funding and staffing of the initiative, with up to thirty-nine civil servants and $2.5 million in funding. Registration is free, and if a landlord meets the requirements, the City is required to issue the landlord a certificate of compliance. The requirements themselves are not overly controversial and include things like operable smoke detectors, functional heating and cooling systems, and functional plumbing. The ordinance includes a system for tenant reporting and protections against retaliation. The primary stated concern of landlords appears to be the administrative burden of compliance. Housing advocates have heralded the ordinance as a modest victory, though the final ordinance did not include compulsory periodic inspections.

The timing of registration will be governed by the number of units on a parcel. For parcels/buildings with 50+ units, owners must register between January 1, 2024 and February 15, 2024. For parcels/buildings with between 49 and 4 units, owners must register between July 1, 2024 and August 15, 2024. And for parcels/buildings with 1-3 units, owners must register between January 1, 2025 and February 15, 2025. Certificates are valid for one year and are not transferable, meaning a purchaser of an existing rental property will be required to re-register.

Property owners who register late, but within 60 days of the relevant deadline will be subject to a $50 penalty. After the 60-day window, the fee rises to $200. The ordinance includes requirements for advising tenants of the status of the certificate and the requirements of the ordinance.

The ordinance empowers the Department of Safety & Permits to promulgate more detailed regulations. It requires that the City make information regarding the certificates, inspections, and violations publicly available through a database. The City will not issue a certificate if the property is haunted by delinquent property taxes or fines, there are open permits that would render the property unfit for habitation, or there are open electrical or mechanical violations. Property owners familiar with the City’s One Stop platform will be familiar with the difficulties associated with closing out old permits and violations.

Reported violations can inspect in inspections and subpoenas from the department. The city’s ordinary notice and hearing requirements will apply. And each day of non-compliance will be considered an independent violation for purposes of penalties. Specific penalties have not yet been made public but are statutorily capped at $1000 or six months in jail.

Notably, short-term rentals are subject to the ordinance, while hotels, motels, bed and breakfast, hostels, and RV parks are not.