NORA: How to Acquire Blighted Properties

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?

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?

4. How can I acquire an adjudicated property?

5. There is an abandoned lot next door to my house that I have been maintaining. How can I acquire it?

6. If I own a blighted or adjudicated property, what incentives are there for me to rehabilitate it?

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:

Blighted Property Amnesty Program
This program is designed to erase the taxes on a blighted property that exceed its appraised value. To qualify for this program, the owner of the property must donate it to an unrelated person who is willing to renovate it within 270 days. At that point the new owner will be responsible for any taxes on the property up to its appraised value as well as any pre-existing mortgages or judgments on the property. NORA is the agency that administers this program. For their contact information, click here.

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.

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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. Click here for their contact information.

Sale of Abandoned Property
When a property is vacant or not lawfully occupied and has been adjudicated for at least 18 months, it can be purchased through the City Attorney’s Office for 50% of its appraised value. The purchaser is required to renovate the property within 270 days and must hire an attorney. For more information contact the City Attorney’s Office. Click here for their contact information.

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5. There is an abandoned lot next door to my house that I have been maintaining. How can I acquire it?
If you live next to an adjudicated vacant lot and have taken over the maintenance of it for a year or more, then you may be eligible to purchase it through the City Attorney’s Office for 50% of its appraised value through the City’s SAV-A-Lot program. You must have two neighbors sign affidavits verifying your maintenance of the lot and must hire an attorney. All mortgages and judgments on the lot will be erased. For more information contact the City Attorney’s Office. Click here for their contact information.
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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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Program	Contact
Search for Adjudicated Status	Notarial Archives 421 Loyola Avenue, Basement New Orleans, LA 70112 (504)568-8577 (504)568-8599 Fax << Back to Top
Blighted Property Amnesty Program	NORA 1340 Poydras Street Suite 1152 New Orleans, Louisiana 70115 (504) 520-8200 << Back to Top
3 Year Acquisitive Prescription Sale of Abandoned Property (SOAP) Sale of Adjudicated Vacant Lot to Adjoining Landowner (SAV-A-Lot) Project Tax Amnesty Tax Sale Lien Waivers	City Attorney’s Office 1340 Poydras Street Suite 1115 New Orleans, LA 70115 (504) 658-4380 << Back to Top
Restoration Tax Abatement	LA Dept. of Economic Development Office of Commerce and Industry Financial Incentives Division P.O. Box 94185 Baton Rouge, LA. 70804 (225) 342-5398 << Back to Top