WWL>Topics>>4-10-14 3:10pm Angela: on illegal rentals

4-10-14 3:10pm Angela: on illegal rentals

Apr 10, 2014|

Angela talks about the illegal renting of houses in the French Quarter with Meg Lousteau of the Vieux Carre Property Owners, Residents, and Associates, and Marigny residents Barry Kaiser and Lisa Suarez.

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Automatically Generated Transcript (may not be 100% accurate)

Well let me tea I have been an impressive along time and that little Clinton -- has got it together. What a wonderful young man and how fortunate for him. That there is some of the same -- hopes attempt if your interest in being a mentor you will go on the -- on line. And fill out an application this is one of the many solutions to a very complex problem. Of young boys going up with the father figure and they're doing a great job. As evidenced by winning an incredible award from the FBI national. We are moving on how would you like to live next to neighbors who every weekend and rented out their home to different groups of people. Different sized groups many partying into the night. That is what's happening more and more to residents of the French Quarter and the -- And they're not happy about it it is illegal to do this but they say Nolan stopping them. Joining us is -- -- stone executive director of The Who cori property owners and residents association. Very Kaiser residents of the marinade and Lisa Suarez also a -- resident and I appreciate you all being here. And -- I want to appeal to our audience listening audience that it doesn't have to be the French Quarter or. Or the marinate if if you're having this situation uptown or wherever. Again it is against the law depending on where you live the penalties we'll get into but give us a call tell us what you're experiencing. And done that because this is a show for you as well there are reasons for laws and I think that's the whole point of this. Not very ominous start with you because I know that you when your wife got so frustrated. That you printed flyers that said New Orleans proud to call it hotel. But it actually -- -- But I helped to distribute them in. And we got a -- a great response from. Who invited to go on WWL and she got to vent a little Britain and put a face on our problem. So talk to me about how great the problem is our well we had -- a little shotgun house next to our. Our house and it's been renovated it's turned into a giant camelback it's. Owned by a guy that -- out every week and he doesn't live there his two partners seas run in and out four or 55650. And nine. Three night minimum cities Poland and I don't know eight or ten grand a month. And he's keeping it all he's not doing anything for the community. He's not paying taxes on it piece operated an illegal short term rental. And when I try to do. Broached the subject with him all he can say is these are my friends in mind family. But we have a print out of his website that. That has accolades from all of his guest -- says. I was there with eight of my college buddies and it was great we can leave our car on the street for the whole week nobody bothered and it. There's noise there's so. I'm just concerned that I mean it is illegal it seems like the cities just. Blowing off all of this lost revenue. And it's not really good for the neighborhood this guy doesn't live there he doesn't contribute anything as potholes and street. And everyone else is paying their taxes we have businesses on either corner with a bar on one corner we have a coffee shop on another corner. We have a pet store they all pay taxes they all went through the proper channels and this guy just came into the neighborhood built -- hotel in the middle of the historical block. And -- seems to care. Okay and met let me talk to you before I get to Lisa. Let's talk about what is the law. The law is very clear on in the French Quarter you can't read anything for less than sixty days and the rest the city it's less than thirty days. There are ways to operate illegal bed and breakfast they involve a permitting process and pain of permit fees. On the restriction on the amount of the square footage of a house you can use for the rentals and NE -- to live on site. So the situation very described as you know and nothing like that there's no permits involved at all it's completely illegal. And especially the man doesn't live there right and his two partners. I've never met right. Okay Lisa tell me about your life. A well I live next to -- two halves that used to belong to the -- prudent spice business. And has been sold on five times in the past fifteen years but I'm starting. A year ago summer it was purchased by person from Texas it's a triple on camelback with nineteen doubles in the front. And on its rented out to visitors that come. -- 98 different days state for a weekend stay for a week. This house has no parking on sometimes they make a lot of noise but if they make a lot of noise like called cops that on personal view. Rinsed out will kick them out and keep their money which I think is fairly amusing. And then I also live next to I'm newly rehabilitated factory building 511 Iranian we've been noticing people going in and out of with luggage -- they're too. And it's -- -- and -- here I know that for a long time this problem was perceived to be confined to the French Quarter but as Lisa and -- can tell you it's no longer confined to the quarter. And I'm a resident of remain and I have a neighbor around the corner from me his running up two houses two groups of twenty plus people per house every weekend. On the ad that he was running on -- B&B said it was for hard party crowds. And so it's a question is very -- -- there's extra cars on the street there's people sitting on porch is you know drinking all night being loud. And they're not neighbors we've we've lost neighbors and those houses now because -- being rented out train it to transients. And when you go up to the owners if you see them and say you know what guys this is against the rules -- -- -- actually went to the neighborhood association the favorite nearing agreement association to ask permission. For illegal vacation rental house well but its -- commercial she said in -- of course turned her down flat she came back twice to talk to the court. And they said -- in no uncertain terms it is illegal and she just went ahead in any. I think she tried to do the right thing because the real estate agent that sold the house Willits zoned commercial you could put vacation rentals and there. So you know it's not just the people that are on haphazardly buying -- she'd ever really intended to live there. Are you saying. As part of the the great group. This happening more and more in French Quarter absolutely their entire blocks now where there are 12 maybe three households that live there. And the rest of these homes are being rented out to vacationers. And you know -- You can you can think about when you go to the beach -- similar to those pirates who tells her Harris condos nobody is their lives are full time there's a sense of community there's no neighbors there and you don't expect that. But in New Orleans and these neighborhoods suspicious of these historic neighborhoods where people -- generally you know renovated these houses and put blood sweat and tears into -- into their homes and their neighborhoods. You do have a sense of community in its one of the things that make -- make them so attractive to listen. But that is being completely undercut by this scourge which is spreading like Mike Pence -- all over the city. And it's really taken advantage of the people that stayed after the storm and he cited -- one and two. Believe in the city and rebuild and put a lot of time and money into it. And now it's it's like a -- so. We have one across the street from us that's running to college students fraternity parties things like that and then just the one next in my house one across the street as well. And then without neighbors we not only have less security because people don't know each other. But there has been huge increase in crime because we don't have all the police officers that we need. So it's just increasing exponentially and also we have fewer voters so we don't have the voice we'd need to get this stuff done properly. Well I'll ask it again. Two on any of our listeners how would you like that how would you like your next door neighbor to decide I'm gonna make money off my property. And and it's going to be at the expense of my neighbors and and it's not paying the taxes that Purdue it's not going to the process of creating a bed and breakfast and frankly it's not fair but it is also illegal. We're gonna take a break we're gonna come back and we're gonna find out if it's illegal. Why isn't something being done about it. Right after this. Well we have some very unhappy campers and studio people who live -- not Farber marinate and also in the quarter and remain. And they are upset and rightfully so about people who are illegally renting out their homes. They're neighbors. And -- what it does to the neighborhood. Without some callers on wanna get them and I appreciate you holding Terry. -- in the Bible. -- -- -- -- -- -- -- I live right next door to look at our -- -- my neighbors are wonderful people operate illegal breakfast. But -- article are adopting. London and two blocks. -- Utah illegal. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- They don't have homeowners insurance. Out there and that. People have you ever called the city. Now. That. There -- at. The end. -- -- -- -- -- There not to. Right that's why it's your business because these people are are. And actively damaging your neighborhood and that's how we have rules and laws to prevent this kind of things -- I hope you'll reconsider your decision not to trying contact the city gets an action on this. -- that the more voices -- here the better. But I really appreciate you calling and I can't answer for you but hopefully it doesn't just. Go right next door to you let's go to jail in the CBD. Compared to -- -- it's an honor to speak to view and hats off all the near topic choice and your humble because it it just. -- -- -- -- -- you make me feel good thank you very very much. Do you have this situation. Are not exactly like. And a close subdivision where it went in one and the company that purchased a home. Kind of in a backhanded kind of wayward except for a couple purchased a moment -- with that there practicing it. Q follows up to six handicapped all our. Mentally retarded people and we're caretakers coming and going pursuit changes that we think about what that's going to be to our subdivision where we. Two and three -- children and this plan on doing what about the outlook on invasion I don't know that he Manning the following you all -- Make -- handicap accessible but we are chairs and it's single family residential. Subdivision and it's just. That happened and it's being pushed through and it's. It's kind of a similar situation but I assume they'll be paying their taxes and bear he's so that's how it differs from. The other situation. But but really what you're saying is they're putting a commercial operation into an. Predicament the commercial operation in our subdivision and it's it's it's pretty disheartening that a company can actually the company name. It's ever dream ministries. And -- location. From what the research we have done it looks like they've made point four million dollars this year. So it's -- why they would put and so there's not trite you you know extra other people. Let me home that it worked so hard for us is this in Orleans parish. No prayer and part of to a OK have you contacted that again there're there are laws and codes and things like that. And it would seem to me if it is a real subdivision that is single family. And always on our certification as well will fight the good fight. What we're trying and they were doing it and I think what it is is pretty in that federal government says. Up to six people can be considered a single family residents divesting some big -- that they have that many people in the home. If -- -- distant and here I am not familiar with the loss of -- to love but John there are a lot of different laws apply it to three she described I would encourage you to contact your local authorities and asked that question to them. Yahoo!. We have we got an attorney involved -- -- just we -- you know. I wanted to call noted that the similar situation I can't think that we are Fargo. I'll bring you very very much and the more we hear the more we know. Toronto now thank you again. Back to what we're talking about for the quarter -- not according to -- needed to -- this man from the vice city's average Saint John -- time Carrollton that the bigger issue is one there are laws that are being broken to. These people are getting a free ride because they're not paying taxes and -- making money right. And there's no positive contribution to the community. And they're -- the city. Right that they the tax issue was a very relevant when. Considering their financial -- city finds itself and repeat but even if you know there are some places that are -- and advocates for it -- the short terminal industry talk about finding ways to. Allow these allow taxes to be paid. Even if that -- to happen we still would not want this practice to continue because of all the other negative effects on neighborhoods like the loss of your neighbor. One of the things we haven't talked about yet is how this affects housing prices particularly in the rental market. Because it is robbing the market of -- available pool of regular rentals because you can make so much more money renting them short term. So there are landlords to looking you know they've got a choice they can rest of myself for thousand dollars a weekend or thousand dollars a month. Or we have the longtime residents an eighty year old woman was kicked out of her apartment which I think for many years. On even before the storm she was paying 86625. For a one bedroom apartment. And then left with no -- -- and her daughter has to come from out of town to rescue her and the only people even willing to listen to the complaints the neighborhood associations. We had a we had we have people call us all the time for the quarter and beyond there was when he called us last year. Somebody had bought her apartment building and a quarter and kick out all the tenants because they were to convert the whole thing to illegal short term rentals. Illegal for illegal street journal's Sharon terminals new hotels and guest houses the Indies have not been allowed and a quarter since 1970. Why aren't the hotels and be in -- upset and it they are they are. I mean these are the hotels everyone thinks they're books and they don't really care that I find that hard to believe because it's a tax issue. And there's what is 13% hotel motel tax yet. Yet that the industry concerns tend to be about the the unfair burden placed on people who are operating legitimately are paying taxes. And when the other things we haven't talked about is compliance with all of the safety my safety code requirements like sprinkler systems and fire escapes and only the things that are important when you have people who were you know sleeping in unfamiliar surroundings. It's just gonna take one disaster to make the government realized what a tremendous problem misses a liability not just for the property owners but for the city. OK I want everyone to stay with this and I want to mark and bread and Cheryl to stay with us as well. We will get -- your calls that we need to go to the newsroom and on names. Once again we're talking about illegal rentals in the city of New Orleans and beyond. And and what it does to neighborhoods -- and we're talking to some very frustrated neighbors. Right now from the Farber Mirren in the quarter but we've heard from the body of water and other places let's take a quick call from Cheryl in the merit Cheryl. -- can't -- meg really appreciate it meg doing -- meg well and she really I think I. I have to tell you I lived in the current quarter botched attack in the air and -- and Mac he happening there and making -- the reason why. -- -- -- -- -- -- -- -- -- -- -- With a -- to city officials and business leaders and one business leader. We're talking about how they need to get more accurate and and and you know about the economy and we can do that more people are DMV. And talk about this city here it make it all this terrorism and when one attendee pointed out that it was illegal. There was like this -- across the room and it's a little different is gonna have to do something about. It's not miles Swanson he's the president of -- Mary in -- association says. Perhaps all is part of the mayor stated goal of exponentially increasing the number of visitors to our city. By attracting more nationally televised events perhaps the -- so dysfunctional that is an eagle to take best basic steps to enforce the laws either way the results the same. And you know the Boston Consulting Group that they spent all the money on and -- has suggested to Turbo charged -- French Quarter to two Turbo -- downtown historic river. Where front and that's what's killing as it's killing the goose that global lay's legal -- okay. Right that is right up. You know very discouraging -- -- in other words. Because I keep looking at these people saying why isn't the city doing anything in their -- I think anchored and I really do believe and you know it was. Heartbreaking to move out of the quarterly they're probably a decade and everybody was doing it. And now I live next door to an apartment it's being rented out wake up to bring in the morning. I haven't elderly neighbor who keeps asking me -- help him he calls this city every day and you know he's -- nobody Anthony and. Well Cornell -- Landrieu in 2011 he says it's an enforcement issues. But I don't know whether or not enforcing -- if it's illegal short term rentals the illegal part should be clear to everyone and they can have puck for the -- can't put a bounty on -- they're capable of shutting down the French suppression Frenchman street of mass market during Mardi Gras because they -- have a permanent maybe they could do something about some something that's really taken a lot of money from the city. I think the fines could pay for enforcement I think this is really question about short term gain vs long term gain -- -- I don't -- mentions are marked made in meeting I was present but I think anybody -- has that attitude of all week -- -- -- tourists but to purchase activity. Or somehow legitimizes activity. Is is failing to understand that it might work. Short term city might get more visitors -- in my view bump in the tax base. But long term it's contributing to the erosion of the -- attraction had our visitors it was based on. So the best thing for a long term tour long term tourism economy is too. Is to back the neighbors and -- the neighborhoods on this make sure that they remain authentic places -- people -- if that authenticity for coming here to see. And when you hollowing out by permitting the erosion of neighborhoods pilot is for terminals EU are -- -- is -- killing the kids and building more hotels by the super them. Inappropriate places right that is right Cheryl thank you very very much the -- to Laura in the marinate. Summit particular icon like I wanted to ask a question as well. At. These legal process. In which people become. -- and get unlike street apparently. How's that content could be -- problem. He has gotten an illegal light in -- directly crop like the street from my house by. We were never -- that you know at a commercial entities. We're going to be going into their little little single shot across the street. To the point you know and economic and eight -- -- every week. It's now tell us that that's not actually illegal operation it may be that they were that they received a B&B license that which you're describing. Does not selling their complying with the terms of your part for bed and breakfast my suggestions for your college city. On call the city planning commission at 6587000. Give them an address and ask them if that address has a permit for a bed and breakfast in if they do it then tell them about you know the number of people -- -- because. To be illegal be indeed there's a limit on the amount of area of the house that you can -- out it's no more than 15%. And in our Ireland site so. Eighteen people unless they're all. -- keep people. On site and I agree with the earlier caller and the debt -- Kind of tacit approval by the city just in a lack of enforcement. The then movement. Making downtown neighbors. -- -- -- -- I -- believe that it's a mind block there for. OK I want you to please remember to document document document please take pictures of people with suitcases. As yeah times as he -- and it. It's really that you don't wanna be a gray you know like -- about the people it's really about the practice. And I think it yet but I think that question is. And kind of that we met about that even if it bit taxation becomes the issue that's not necessarily good solutions. And and simultaneous legal Eagles PNC's. Who are allowed to apparently according to -- library you can count on her locked. She -- Go in and doesn't need it as well. But aren't going -- -- -- Bring current similarly elect Michael Roberts strip joint door. Package store you know we shouldn't. Yeah we've had it's actually one per block face he can have two on each block. And most of the blocks in -- certainly. Have although it's illegal completely in the French Quarter in -- -- on most of those licenses or have already been. Take it. Right and again what you're describing does not so -- anybody he's come coming close to complying with that the regulations about legal B&B so I just urge you to call city planning and get that information you know I'm just listening to office and -- I know that you represented twenty other people each of you and the people on the phone. That they all should be a sort of walk on City Hall well -- is how the one stop shop. Good luck. -- -- obviously this has been a huge problem the quarter we are both heartened and period said that it is spreading to other neighborhoods but we do you think this is giving us the tracks that we need to really make some demands of the city step up and do some enforcement so. On our organization working with several other organizations is trying to put together an information session. That we will broadcast of the city anybody wants to can come. We urge people to call us or email us with information about sort terminals are phone number is 5817200. For email addresses info at TV CP ORA. And a website to DC -- dot org and we have information about your terminal there to stay with us everyone's callers please stay with this as well we'll be right back. Thank you for holding on brand were talking about the illegal rentals and you have a comment. -- Thank you chancellor very important topic our share. What you're -- regarding illegal rentals. But it on one caller who went against the group home you know there are civil rights laws and you can't -- -- co habitation. One related people in fact a law like debt -- struck down that orders. You know we need group homes people with mental illness and other maladies. The plate the leader. -- art community. And in. Hospitals. -- these -- real. Charity bench and you know the only place for the people would now we are in prison. And so there's a fine line beat dean -- -- Turning people in the hotel rooms which are totally agree to -- on court. -- and that sort of group homes which otherwise light -- Effective. What the reading area. After lightning by the city and that caller was concerned. About it they can contact the department health and hospitals and find out while the group all but -- welcome -- welcoming community. For people who frankly there are the live here and -- field trying to get back to it you know merely the thing. We don't wanna build the city that we war one don't city we want to become. Unfortunately. As we have yet to be -- part of the calming of the plate that com healing. And there are people out in the people would love to come back home city it's become unaffordable. Because of practice like we -- -- That is one of their big points at -- I hate that after racking up but I. Truly appreciate your call very very much into other question young the sixties Iran like full time businesses I'd like to ask your callers that they can think of another. Business it's allowed to operate in the city of New Orleans with impunity. Without any licenses without any enforcement at all or other any other businesses that news. And if I can offer tip is illogical calls they wanna know what to do and we have -- been able to get the right levels enforcement from the city there are number of tactics. Obviously -- contact person directly maybe -- Genuinely don't know what they're doing is illegal and you just tell them that is they'll they'll be good citizens and stop shared if that's not the case you can call the mortgage office at the city 4070091. To find out if there's -- more to the property -- the mortgage holder is because of his mortgage on -- house finished insurance on the property. And I would bet you dollars to enact that that insurance company is not writing a policy for commercial rental. Very interesting way to approach to. What else what else can you. Well there's the possibility that the IRS is unaware of -- additional income and -- neighbor mayor may not be reporting half -- -- additional income is income. And then as a last resort you can take legal action you are your -- association or group of neighbors to take legal action against person doing this and again as a last resort it's cumbersome it's expensive it's time consuming. But when nick you are living next to something that you know in my case is basically a spring break flop house. And it's a choice of you having to leave your home because you can't tolerate the living conditions anymore or filing suit against somebody. That's an easy decision. -- said that that the choices either selling your house are becoming a hotel to deal with this. And I think something very petition to about. Your neighbors said you're the value of your house is up because I've renovated next door well that is not true now there's no one wants to live next to a hotel so I tried to sell the house and they found out that there was an illegal. Short term rentals it's opened every weekend -- because you have to disclose stuff like yeah so it's it's not really good -- no property values at all. It is raising rents because of -- extravaganza -- artificially driving them right. And and it's illegal and should be enforced and we're gonna take another break we'll be right back. Well the battle is on and I think that's what's important. A lot of very unhappy homeowners and people were reining in areas they'd love because it's a neighborhood. And their neighbors are breaking the law final thought -- on the we are really working hard on this issue an Anchorage anybody's having a problem to call our office at 5817200. Or visit our website at. DCP. ORA dot org and let us now. And I didn't wanna give a final note that on mega sort of heading up a task force on this but contact your local neighborhood association. And that then having your -- as well because we are concerned and we do want you involved and we will have you back -- we'll just continue this discussion but thank you very much for joining us now let's go to the newsroom for the very latest.