Acquiring and Rehabilitating Abandoned and Blighted Property in the City of New Orleans
| Method |
Requirements |
Advantages
to Purchaser |
Disadvantages
to Purchaser |
Purchase
from Owner
(Blighted Property Amnesty Program) - Apply through NORA |
•
Must be declared blighted
• Requires renovation in 270 days (will subordinate during construction)
• Requires that owner donate property to purchaser
• Purchaser cannot be related to seller |
•
Erases taxes that exceed the appraised value of the property
• No lawsuit |
•
Time to declare blighted (possibility of consent judgment of “blight”)
• Must acquire by donation, else cost exceeds value
• Requires cooperation of owner
• Does not erase mortgages & judgments |
NORA
Expropriation
Apply through NORA |
•
Must be declared blighted
• Requires renovation in 270 days |
•
Erases taxes, liens, mortgages & judgments
• Does not require owner’s cooperation |
•
Time to declare blighted
• Time to expropriate
• Must pay full appraised value
• Must post purchase price before suit is filed |
| Purchase
at Tax Sale - Public sales handled by the Finance Department |
•
Taxes must be delinquent |
•
Cost is taxes due
• Does not require owner’s cooperation |
•
Public sale
• Redemptive period
• Must quiet tax title in court |
Purchase
at Project Renew Sale
Public sales handled by the Orleans Parish Civil Sheriff |
•
Must have health lien on property |
•
No redemptive period
• Merchantable title
• Erases mortgages and judgments
• Does not require owner’s cooperation |
•
Minimum bid
• Public sale |
3
Year Acquisitive Prescription
No application to any governmental entity |
•
Must be declared blighted
• Requires renovation in 270 days
• Must pay taxes |
•
Cost is renovation costs, taxes & attorney fees
• Can be combined with Project Tax Amnesty to remove taxes that exceed “actual
cash value” of property
• Does not require owner’s cooperation
• Builders and renovators own the property
upon completion
• Erases mortgages & judgments |
•
Title not good for 3 years if Lot
• Cannot sell or get mortgage for 3 years
if lot or after renovation or construction
• Must quiet title in court
• Must hire attorney |
Donation
of Abandoned Property
Apply through City Attorney’s Office |
•
Must be adjudicated to City for taxes for 18 months
• Must be “abandoned”
• Must be used for housing
• Donee must be non-profit
• Requires renovation in 270 days |
•
Cost is free
• Erases mortgages and judgments
• Does not require owner’s cooperation
• No lawsuit |
•
Tax Title Services' fees
• 2 year resale requirement
• Must hire attorney |
Sale
of Abandoned Property
Apply through City Attorney’s Office |
•
Must be adjudicated to City for taxes for 18 months
• Must be “abandoned”
• Requires renovation in 270 days |
•
Cost is 50% appraised value
• Erases mortgages and judgments
• Does not require owner’s cooperation
• No lawsuit |
•
Tax Title Services’ fees
• Must hire attorney |
Sale of
Adjudicated Vacant Lot to Adjoining Landowner
Apply through City Attorney’s Office |
•
Must be adjudicated to City for taxes for 3 years
• Applicant must have maintained the lot for at least one year
• Must be a vacant lot |
•
Cost is 50% of appraised value
• Erases mortgages and judgments
• Does not require owner's cooperation
• No lawsuit |
•
Tax Title Services' fees
• Must hire attorney |
| Incentives
for Rehabilitating |
| Method |
Requirements |
Advantages to Purchaser |
Disadvantages to Purchaser |
Lien
Waiver Committee
Apply through City Attorney’s Office |
•
Must be renovated (will subordinate during construction) |
•
Removes cash liens which can make the renovation more expensive |
|
Project
Tax Amnesty
Apply through City Attorney’s Office |
•
Must be adjudicated to City for taxes
• Requires renovation in 270 days
(will subordinate during construction) |
•
Removes taxes that exceed the “actual case value” of the property |
•
Must pay full “actual case value” |
Restoration
Tax Abatement
Apply through Louisiana Office of Commerce and Industry |
•
Must be declared blighted or be in a historic or economic development district
• Must apply before construction is commenced |
•
Freezes the assessed value of the improvements at pre-renovation assessed
value for 5 years, with a possible 5 year extension |
•
Application and approval is very complicated |