The New Orleans Comprehensive Zoning Ordinance (CZO) Article 21 does not impose a strict owner-occupancy requirement for accessory dwelling units in most residential districts. Property owners may rent both the principal dwelling and the ADU long-term. Owner occupancy is, however, central to the Short-Term Rental (STR) framework under CZO Article 20 — STR permits in residential districts require owner occupancy.
The New Orleans Comprehensive Zoning Ordinance (CZO) Article 21 (Use Standards) does not impose a strict owner-occupancy requirement for accessory dwelling units in most residential districts (HU-RD2, HU-RM1, HU-MU, S-RS, S-RD, S-RM). A property owner may construct or maintain a carriage-house style ADU and rent both the principal dwelling and the ADU separately on long-term leases (30+ days) without residing on-site. This reflects the city's historic tradition of multi-family carriage houses where the owner often lived elsewhere. However, owner occupancy becomes critical under CZO Article 20 (Short-Term Rentals) — if the ADU or principal dwelling is to be used as a short-term rental (under 30 days), the property must qualify for a Residential STR permit which requires owner occupancy (the operator's homestead exemption tied to the property). Without owner occupancy, only Commercial STR permits are available, and these are restricted by zoning district. Louisiana state law has not preempted local owner-occupancy rules. HOA covenants and historic district guidelines (VCC, HDLC) may impose additional restrictions independent of the CZO. The Vieux Carré has unique residential preservation policies that strongly favor owner occupancy.
Operating an ADU contrary to a CUP condition that requires owner-occupancy is a code violation with fines up to $500 per day under City Code Section 6-22. STR ordinance violations carry separate penalties up to $1,000 per day under CZO Article 20 enforcement. HOA enforcement is civil.
New Orleans, LA
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