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Other
Dilapidated Property Programs
Attempting to acquire and rehabilitate a dilapidated property in New Orleans has traditionally been a confusing process. Much of the confusion stems from the fact that there are a number of different mechanisms to obtain such properties and myriad local agencies that administer these programs. The purpose of this section is to distill these programs down to their essence—which properties are eligible for which programs, which agency administers the program, and how one can contact that agency.
It is possible that an individual dilapidated property may be acquired in a number of different ways as it may be eligible for more than one method of acquisition. It is up to the prospective buyer to determine, in consultation with the relevant agencies, which method is most expedient. It also should be noted that in many cases, the easiest way to acquire a dilapidated property is simply to contact the present owner and negotiate for the sale of the property. While many of these properties have outstanding taxes and liens and other title complications, nothing precludes a prospective purchaser from resolving these problems in cooperation with the present owner prior to a sale.
NORA’s primary responsibility has been to facilitate the acquisition of blighted properties through expropriation. To find out more about this process, click here; and to search for blighted properties, click here. The questions that follow address the variety of other mechanisms that may be utilized to obtain a derelict structure or lot.
1. What is the difference between a blighted and an adjudicated property?
2. How can I find out if a property is adjudicated?
4. How can I acquire an adjudicated property?
5. What is the Lot Next Door Program?
1. What is the difference between a blighted
and an adjudicated property?
“Blighted” is an official legal designation for properties that
are vacant, uninhabitable, and hazardous. An administrative hearing officer
must declare a property to be blighted, so not all dilapidated properties are
legally considered blighted. Adjudicated property has been sold to the
parish or city for nonpayment of taxes. Often properties are both
blighted and adjudicated.
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2. How can I find out if a property is
adjudicated?
Adjudicated status can be researched at the City’s Notarial Archives. Click
here for their address and contact information.
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3. I want to acquire a blighted property,
but I don’t want to go through the expropriation process. Are
there any other ways to acquire blighted properties?
In addition to the expropriation process, which
is described in detail here, there are two other
ways to acquire legally blighted properties. They are as follows:
3 Year Acquisitive Prescription
This method is commonly known as “squatter’s rights” and does not require an application to any government entity. To acquire a property by this method, the interested party simply pays for the renovation of the property and then becomes the legal owner once the work is completed and a lawyer has quieted the title in court. All mortgages and judgments on the property will be erased, but the new owner will be responsible for any delinquent taxes. Contact an attorney for more information about this method of acquisition.While the process of acquisitive prescription is privately initiated and is not coordinated by any public agency, you may contact the City Attorney’s office for general information about this mechanism. Click here for their contact information.
4. How can I acquire an adjudicated property?
The methods for acquiring adjudicated properties are outlined below.
Purchase at Tax Sale
The City’s Finance Department holds regular public sales of adjudicated properties. The purchaser pays only the taxes due and then must quiet the title in court. For more information contact the City Attorney’s office.
5. What is the Lot Next Door Program?
The Lot Next Door ("LND") program only applies to property that NORA owns and it is not related to the former Sav-a-Lot program. By ordinance, the LND program gives adjacent property owners with a homestead exemption the first opportunity to purchase NORA properties at Fair Market Value ("FMV"). FMV is determined by appraisals and will vary based on the condition of a given lot, its size and location. For the purposes of the ordinance, adjacent property owners only include owners to the left, and to the right of the eligible lot and not the rear. Under the LND program, NORA will contact adjacent owners at the addresses filed with the assessor office. LND purchasers may not transfer LND property for five years without payment of a penalty and are expected to maintain these properties after acquisition.
NORA currently owns only about 100 blighted properties. All of these will be examined for LND eligibility and appropriate notices will be sent. Over the next few years, NORA wil eventually aquire 5000 - 7000 properties from the State as part of the Road Home program and all of these properties will be examined for LND eligibility.
6. If I own a blighted or
adjudicated property, what incentives are there for me to rehabilitate it?
There are several incentives for owners to renovate their blighted and/or
adjudicated properties:
Project Tax Amnesty
If the taxes due on an adjudicated property exceed the actual value of the property, then the owner may apply for tax amnesty. Under this program the owner has 270 days to renovate the property, at which time all taxes exceeding the property’s actual cash value will be forgiven. For more information contact the City Attorney’s Office. Click here for their contact information.Restoration Tax Abatement
The owner of a blighted property may apply for this program through the Louisiana Office of Commerce and Industry. If his application is approved, the owner can renovate the property and its assessed value will be frozen at the pre-renovation assessment for five years. For more information contact the Louisiana Department of Economic Development. Click here for their contact information.Lien Waiver Committee
A property owner can apply to the City Attorney’s Office to have cash liens removed from the property pending its renovation. Click here for their contact information.
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