HLS 12RS-920 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 430
BY REPRESENTATIVE BROSSETT
LOCAL AGENCIES: Authorizes the New Orleans Redevelopment Authority to purchase
adjudicated properties located within its territorial jurisdiction from political
subdivisions of the state
AN ACT1
To enact R.S. 33:4720.58.1, relative to Orleans Parish; to provide relative to the New2
Orleans Redevelopment Authority; to provide relative to the powers and duties of the3
authority; to authorize the authority to purchase adjudicated properties located within4
its territorial jurisdiction from political subdivisions of the state; to provide5
procedures for such purchases; to provide relative to the powers and duties of the6
state and its political subdivisions with regard to such purchases; to require the7
authority to submit reports regarding its purchases to certain legislative committees;8
and to provide for related matters.9
Notice of intention to introduce this Act has been published10
as provided by Article III, Section 13 of the Constitution of11
Louisiana.12
Be it enacted by the Legislature of Louisiana:13
Section 1. R.S. 33:4720.58.1 is hereby enacted to read as follows: 14
ยง4720.58.1. Acquisition of adjudicated properties15
A. The authority may purchase adjudicated properties within its territorial16
jurisdiction from any political subdivision of the state of Louisiana. No such17
purchase shall be construed to, or otherwise have the effect of, extending or18 HLS 12RS-920 ORIGINAL
HB NO. 430
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suspending the period prescribed by law for the redemption of the property by the1
tax debtor or any other person.2
B. In addition to the authority set forth in Subpart B of Part IV of Chapter3
5 of Subtitle III of Title 47 of the Louisiana Revised Statutes of 1950, such purchases4
by the authority may be by a direct negotiated purchase and sale agreement between5
the authority and a political subdivision without any other requirement of a public6
sale prior to the transfer of such properties to the authority. Such purchases by the7
authority shall not be considered the sale of surplus property or of property owned8
by the political subdivision.9
C. Effective upon the recordation of the transfer of an adjudicated property10
to the authority pursuant to a purchase and sale agreement, the rights of the authority11
in and to such property shall be the rights of a purchaser at a tax sale as contemplated12
by Chapter 5 of Subtitle III of Title 47 of the Louisiana Revised Statutes of 1950,13
subject only to the rights of redemption of the property set forth in Article VII,14
Section 25(B) of the Constitution of Louisiana, and the property shall no longer be15
deemed to be adjudicated property as of such recordation. For purposes of the right16
of redemption in Article VII, Section 25(B) of the Constitution of Louisiana, the17
redemptive period commences on the date of the recordation of the initial18
adjudication to the political subdivision and not on the date of transfer to the19
authority.20
D. Any such purchase and sale agreement shall set forth the total21
consideration to be paid by the authority and the method and timing of payment of22
such consideration by the authority.23
E. The state and any political subdivision with liens on the property may,24
pursuant to intergovernmental agreements with the authority, cancel such liens25
contemporaneously with or subject to the transfer of the property to the authority.26
F.(1) The authority shall have the right, subject to the provisions of this27
Section, to purchase properties at tax sales conducted in accordance with R.S.28 HLS 12RS-920 ORIGINAL
HB NO. 430
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47:2155 and 2156, and any and all such purchases shall be a purchase pursuant to1
R.S. 47:2155 and 2156 and not an adjudication to a political subdivision.2
(2) Notwithstanding the provisions of Chapter 5 of Subtitle III of Title 47 of3
the Louisiana Revised Statutes of 1950, the authority may tender a bid at a tax sale4
which is a credit bid, consisting of the obligation of the authority to satisfy the5
component parts of the bid by payments to the respective political subdivisions and6
taxing entities in accordance with intergovernmental agreements between the7
authority and such political subdivisions and taxing entities.8
(3) A bid by the authority at a tax sale for the minimum amount shall take9
priority over all other bids for the same quantity of property, except for a higher bid10
submitted by a conventional mortgage holder holding a mortgage on the subject11
property.12
G. The authority shall submit annual reports to the House Committee on13
Municipal, Parochial and Cultural Affairs and the Senate Committee on Local and14
Municipal Affairs and each member of the Orleans Parish legislative delegation15
concerning property purchased by the authority. Such report shall be filed by March16
first each year and shall cover the previous calendar year. Each report shall include:17
(1) The legal description or other indication of the location of each property18
purchased.19
(2) The amount paid for each property.20
(3) The minimum bid that was set for the property and the appraised value21
of the property.22
(4) A general description of the authority's plans for the property and how23
such plans advance the purposes for which the authority is created.24
Section 2. This Act shall become effective upon signature by the governor or, if not25
signed by the governor, upon expiration of the time for bills to become law without signature26
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If27
vetoed by the governor and subsequently approved by the legislature, this Act shall become28
effective on the day following such approval.29 HLS 12RS-920 ORIGINAL
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Brossett HB No. 430
Abstract: Authorizes the New Orleans Redevelopment Authority to purchase adjudicated
properties.
Present law authorizes the city of New Orleans to formulate a workable program for the
community improvement for utilizing appropriate private and public resources to eliminate
and prevent the development or spread of slums and urban blight, to encourage needed
rehabilitation, and to provide for the redevelopment of slum or blighted areas or to undertake
other feasible municipal activities as may be suitably employed to achieve the objectives of
such workable program.
Present law provides for the creation of the New Orleans Redevelopment Authority.
Provides that the authority to the greatest extent it determines to be feasible in carrying out
the provisions of present law shall afford maximum opportunity, consistent with the sound
needs of the city of New Orleans as a whole, to the rehabilitation or redevelopment of the
community improvement area by private enterprise.
Present law provides for the preparation and adoption of a community improvement plan by
the authority to address slum and blighted areas. Provides that such plan shall not be
instituted unless the local governing body has, by resolution, determined such area to be a
slum or a blighted area or a combination thereof and designated such area as appropriate for
a community improvement project. Provides procedures for adopting such a plan.
Present law provides that the authority shall have the power to acquire by purchase, gift,
bequest, expropriation, negotiation, or otherwise any blighted property as defined in present
law either within or outside a designated community improvement area and, further, to hold,
clear, manage, and dispose of said property, all in accordance with the procedures set forth
in present law which procedures shall be exclusive for the acquisition of individual blighted
property by the authority. Provides for disposition of such property.
Proposed law retains present law and additionally authorizes the authority to purchase
adjudicated properties within its jurisdiction from any political subdivision of the state.
Provides that no such purchase shall be construed to, or otherwise have the effect of,
extending or suspending the period prescribed by law for the redemption of the property by
the tax debtor or any other person.
Proposed law provides that the purchases by the authority may be by a direct negotiated
purchase and sale agreement between the authority and a political subdivision without any
other requirement of a public sale prior to the transfer of such properties to the authority.
Provides that the purchases are not considered the sale of surplus property or of property
owned by the political subdivision.
Proposed law provides that effective upon the recordation of the transfer of an adjudicated
property to the authority pursuant to a purchase and sale agreement, the rights of the
authority in and to such property shall be the rights of a purchaser at a tax sale as
contemplated by present law (Chapter 5 of Subtitle III of Title 47 of the L.R.S. of 1950)
subject only to the rights of redemption of the property set forth in the state constitution. HLS 12RS-920 ORIGINAL
HB NO. 430
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Proposed law authorizes the state and any political subdivision with liens on the property,
pursuant to intergovernmental agreements with the authority, to cancel the liens
contemporaneously with or subject to the transfer of the property to the authority.
Proposed law authorizes the authority to tender a bid at a tax sale which is a credit bid,
consisting of the obligation of the authority to satisfy the component parts of the bid by
payments to the respective political subdivisions and taxing entities in accordance with
intergovernmental agreements between the authority and such political subdivisions and
taxing entities. Provides that a bid by the authority at a tax sale for the minimum amount
takes priority over all other bids for the same quantity of property, except for a higher bid
submitted by a conventional mortgage holder holding a mortgage on the subject property.
Proposed law requires the authority to submit annual reports to the House Committee on
Municipal, Parochial and Cultural Affairs and the Senate Committee on Local and Municipal
Affairs and each member of the Orleans Parish legislative delegation concerning property
purchased by the authority. Each report shall include: a legal description or other indication
of the location of each property, the amount paid for each property, the minimum bid that
was set for the property and the appraised value of the property, and a general description
of the authority's plans for the property and how such plans advance the purposes for which
the authority is created.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 33:4720.58.1)