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Regular Session, 2012 ENROLLED
SENATE BILL NO. 752 (Substitute of Senate Bill No. 447 by Senator Peterson)
BY SENATORS PETERSON, APPEL, MARTINY AND MORRELL AND
REPRESENTATIVES ADAMS, BILLIOT, CONNICK, HENRY,
LEOPOLD, LIGI, LOPINTO, LORUSSO, TALBOT AND WILLMOTT
AN ACT1
To enact R.S. 9:5396 and R.S. 33:5065 through 5069, relative to ordinances requiring2
abandoned property be maintained in a safe and sanitary condition; to allow the3
governing authority of certain municipalities to maintain abandoned properties; to4
provide for definitions; to provide for notice; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 9:5396 is hereby enacted to read as follows:7
§5396. Maintenance of abandoned mortgaged property8
A. If a mortgagee or loan servicer receives a notice from a governing9
authority in accordance with R.S. 33:5062 or R.S. 33:5065 et seq., identifying10
certain maintenance required on the mortgaged property, the mortgagee and11
loan servicer shall have the right to directly or through third parties enter onto12
the property to perform maintenance.13
B. If any abandoned residential property, as defined by R.S. 33:5066,14
affected by a mortgage is unoccupied or abandoned, the mortgagee and loan15
servicer shall each have the legal right, directly or through third parties, to16
enter onto the property and to perform maintenance to protect and preserve the17
property until it can be sold at private sale or sheriff's sale.18
C. The mortgagee, loan servicer, and any third parties hired by them to19
perform maintenance on the property, as defined by R.S. 33:5066, shall not be20
liable to the mortgagor or the owner of the seized property or any other person21
for any financial or pecuniary loss or damage claimed to have been suffered by22
the mortgagor or owner of the property or any other person by reason of the23
maintenance of the property.24 SB NO. 752 ENROLLED
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D. Any costs and expenses incurred by the mortgagee or loan servicer1
for maintaining the property may be added to any loan balance secured by the2
mortgage and recoverable from proceeds received from a sale of the property.3
Section 2. R.S. 33:5065 through 5069 are hereby enacted to read as follows:4
§5065. Maintenance of abandoned residential properties in municipalities and5
parishes6
The governing authority of any parish with a population between four7
hundred thousand and four hundred forty thousand based on the latest federal8
decennial census, and any governing authority of a municipality that lies within9
such a parish, may enact ordinances requiring that abandoned residential10
property be maintained in safe and sanitary condition to maintain the stability11
of the neighborhood.12
§5066. Definitions13
The following words and phrases when used in R.S. 33:5065 through14
33:5069 shall have the following meanings, unless the context clearly indicates15
otherwise:16
A. "Abandoned residential property" shall mean one-to-four-family17
residential property that is vacant as the result of the relinquishment of physical18
possession or control by a homeowner or any other person or entity. Property19
may be deemed abandoned when there is evidence of conditions, taken20
separately or as a whole, that would lead a reasonable person to conclude that21
the property was unoccupied, including but not limited to evidence of vacancy.22
B. "Evidence of vacancy" shall mean a condition that on its own, or23
combined with other conditions present, would lead a reasonable person to24
believe that the property is vacant. Such conditions include but are not limited25
to overgrown or dead vegetation, accumulation of newspapers, circulars, flyers,26
or mail, past due utility notices or disconnected utilities, accumulation of trash,27
junk or debris, the absence of window coverings such as curtains, blinds or28
shutters, the absence of furnishings or personal items consistent with residential29
habitation, and statements by neighbors, passersby, delivery agents, or30 SB NO. 752 ENROLLED
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government employees that the property is unoccupied.1
C. "Maintenance" shall mean but is not limited to repairing or replacing2
broken glass windows, repairing or replacing exterior doors, repairing or3
replacing soffit, fascia, shutters, and siding, repairing or replacing fences, and4
maintaining or covering swimming pools and hot tubs.5
D. "Owner" is defined as any person with care, custody, or control of the6
property at issue, including but not limited to record owners, seizing creditors,7
mortgage holders, lien holders, loan servicers of foreclosed property pending8
title transfer, or an agent or assignee of the seizing creditor, mortgage holders,9
lien holders, or loan servicer.10
E. "Notice" shall mean posting notice of the alleged violation on the door11
of the property at issue and sending notice via certified mail, return receipt12
requested, from the governing authority addressed to the property owner,13
referencing the subject property, providing an explanation of the maintenance14
needed on the property, specifying the time period in which the work is15
required to be completed, providing the name and phone number of a contact16
person with the governing authority who has knowledge of the matter who can17
provide more information, including a copy of the applicable ordinance, and18
including a photo of the subject property. If the property is encumbered by a19
recorded mortgage, then a notice letter shall also be sent certified mail, return20
receipt requested, from the governing authority addressed to the seizing21
creditor, mortgage holder, lien holder, or loan servicer of foreclosed property22
pending title transfer that includes all of the information and enclosures23
required to be provided in the letter to the owner.24
§5067. Time delays, procedure for maintenance25
A. No such work shall be undertaken by the governing authority26
pursuant to this Section until the owner of the property, as defined in R.S.27
33:5066 (D), has been given notice and a minimum of forty-five days to perform28
the maintenance.29
B.(1) A governing authority may undertake the maintenance of the30 SB NO. 752 ENROLLED
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property if the requirements of notice and time delay as provided for herein1
have been met and the maintenance has not been performed.2
(2) The governing authority shall take a photograph showing the3
condition of the property before the maintenance is performed and shall take4
a photograph showing the condition of the property after the maintenance is5
performed. The governing authority shall keep records showing the expenses6
incurred in maintaining the property, and those records shall be retained for7
a period of five years or until the property is sold, whichever time is less.8
(3) The governing authority shall use licensed and insured vendors to9
perform maintenance on property pursuant to this Section.10
C. After completion of the maintenance on the subject property, the11
governing authority shall record in the public mortgage records in the parish12
where the property is located, an affidavit, signed by either the chief elected13
official or his designee or by the parish or city attorney or his designee. The14
required affidavit shall include the following:15
(1) A legal description of the property to which maintenance was16
performed, sufficient to reasonably identify it.17
(2) The name of the property owner.18
(3)A description of the maintenance performed and an itemization of the19
amounts of money spent on maintenance.20
(4) The name of the governing authority and a statement that the21
provisions of this statute and the provisions of the applicable local ordinance22
have been complied with.23
§5068. Privilege24
A. The governing authority shall have a privilege against the subject25
property for the cost of maintenance it incurs, as documented in the recorded26
affidavit, and the privilege shall have the ranking priority as to other mortgages27
and privileges as provided in R.S. 9:4821(1).28
B. The cost of maintenance, including charges, costs, and expenses29
incurred by the governing authority in enforcing such ordinances enacted30 SB NO. 752 ENROLLED
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pursuant to R.S. 33:5065 through 33:5069, shall be the actual cost thereof to the1
governing authority, not to exceed a total amount of five thousand dollars in a2
twelve-month period.3
§5069. Procedure for disputing privileges4
A property owner and a mortgage holder shall have the right to dispute5
a privilege created against a mortgaged property under R.S. 33:5068, if the6
work creating a privilege was not performed on the property. A privilege may7
be disputed by submitting an affidavit to the governing authority. The affidavit8
shall be made by someone with knowledge of the condition of property,9
providing a statement that the work giving rise to the lien was not performed10
on the subject property, and giving an explanation as to why it believes the work11
was not performed on the property. Additional documentation may be12
submitted with the affidavit, such as pictures of the identity and condition of the13
property, and invoices or records showing that work was performed privately.14
Upon receiving the affidavit and other documentation, the governing authority15
shall have thirty days to investigate the dispute and respond by either producing16
pictures or records to prove that the privilege established on the property for17
work performed is accurate, or by issuing a written release and cancellation of18
the privilege.19
Section 3. This Act shall become effective October 1, 2012.20
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: