Beacon of Hope Resource Center's slides on three methods of acquiring vacant property in New Orleans.

1. 3 Methods to Acquiring Vacant
Property in New Orleans
Beacon of Hope Tutorial Series *

2. 3 Methods to Acquire Vacant Property
• Code Lien Foreclosure- City of New Orleans
• New Orleans Redevelopment Authority
(NORA) Auction
• Tax Sale- City of New Orleans

3. 1st Method of Vacant Property Acquisition (slides from Tyler
Gray, City Attorney’s office)
CODE LIEN FORECLOSURE

4. Sheriff Sales
City of New Orleans
City Attorney’s Office
February 7, 2012

5. What Seizures Do
 Transfers the debtor’s ownership interest
 Wipes out the debtor’s inferior liens
 “Clear Title”
 Pays off the debtor’s superior liens.

6. Types of Seizure
 Writs of Sale and Seizure are almost always foreclosures
on mortgages
 If a Bank or Mortgage Company’s name appears first in
the title of a case, it is almost always a foreclosure on a
mortgage.
 If “City of New Orleans” appears in the title of a
case, then is a City sale of blighted property

7. Writ of Fieri Facias v. Seize and Sell
 Money Judgment
 Mortgage/Security Interest
 Failed mortgages generally have title insurance.
 A Bank or Mortgage Company is usually the Plaintiff in Seizure
Sales. (Read the title of the case)

8. City of New Orleans Blighted Property
Sales Under Writs of FiFa
 Blight is legal determination pursuant to Louisiana
Revised Statute 13:2575
 Administrative Hearings – Blight/Public Nuisance
 The New Orleans Code, Chapter 28, Sections 28-7, 28-39 et
seq., and 6-41
 Code Enforcement and Hearings Bureau (504) 658-4301
 www.nola.gov
 Click Residents
 Click Code Enforcement
 http://www.nola.gov/RESIDENTS/Code%20Enforcement/
 Law that allows the City can seize and sell property
pursuant to R.S. 13:2576(A)(1)(a)(i).

9. City of New Orleans Sheriff Sale Process
 Applies only to Unoccupied Property
 Chapter 28 of the New Orleans Code at Section 28-6
 Minimum standards for unoccupied property
 Section 28-6 to Section 28-36
 Blight/Public Nuisance is a legal determination
 Section 28-37  Allowing a public nuisance
 Section 28-38  Allowing a blighted property
 Administrative Judgment
 30 day appeal period (Sec. 6-41)
 Judgment recorded in mortgages (Sec. 6-39(a))
 Daily fines accrue for 30 Days

10. Administrative
Judgment
 Example of a Judgment
 Address
 Property Description
 Violation Address
 Mailing Address
 Owner
 Administrative Hearing
Officer
 One Time Fine
 Daily Fines
 Judgment Rendered
 Judgment Signed

11. Sheriff Sale Process Continued. . .
 City directs Sheriff to seize and sell property
 Writ of Fieri Facias (Fifa)
 Filed in Civil District Court
 Set the property for sale
 send deputy for service
 Unable to locate Defendant/Owner
 Appoint a curator under La. CCP 2293
 Reset the sale of the property

12. Sales
 First Sale
 With appraisal – two-thirds of that appraisal (La. CCP 2336)
 UNLESS debt (taxes and liens) exceed the two-thirds
appraised value (La. CCP 2338)
 Property Sold
 City
 Granted first lien privilege pursuant to R.S. 9:4821(1)
 Mortgage Holders
 Section 28-58, La. CCP 2373
 Original Owner
 Remaining proceeds – Section 28-58

13. Second Sales
 Property not sold at First Auction
 Put up a Second time
 Sold at price sufficient to cover outstanding liens, real estate
taxes and other debts owed to the City
 La. CCP 2336, 38

14. How do I stop the Sheriff Sale Process?
 Two Options:
1. Pay the outstanding the debt owed to the City of New
Orleans
1. Contact: Lula Lowe or Ursula Frank in Code Enforcement
1. Payment in Treasury goes to Code Enforcement Liens BEFORE
paying the taxes
1. Section 6-39(b)
2. Renovate the property and apply for a lien waiver
1. Criteria:
1. Property Renovated
2. Significant Hardship
3. Enrolled in a State Program
4. Available only to the owner of the property

15. Progress
 The City filed 60 writs every two weeks for 2011.
 Blightstat, City Hall, 8th Floor, Homeland Security Room 8 AM
 Monthly Meetings, Feb. 9th, 2012 – next meeting
 Blightstat reports available on Office of Performance and Accountability
Website
 www.nola.gov
 Click “Chief Administrative Office”
 Click “Office of Performance and Accountability”
 www.nola.gov/government/Chief-Administrative-Office/Office-of-
Performance-and-Accountability
 October 17, 2010 – Dec. 31, 2011, 1003 writs filed
 We have started filing writs again for 2012, Approximately 50 to date
 We are in the process of scheduling properties for the month
of April of 2012.
 Next blighted property sales: Feb. 18, Feb. 16, Feb. 23, Mar. 6, Mar. 8

16. Issues
 Title Issues
 “Fractured Heirship”
 Recordation Date of Judgment
 Owner sells property after found blighted
 Banks
 Recordation Date of their foreclosure
 La. R.S. 13:3888
 Acquisitive Prescription
 La. R.S. 9:5633

17.  Sheriff’s policies and procedures for regular auctions
apply to blighted property sales.
 Information Sources:
 data.nola.gov
 www.nolaassessor.com
 www.civilsheriff.com
 Additional Information: Please contact or e-mail our
Blighted Property Specialists:
 Tyler P. Gray, 504-658-4380 or tpgray@nola.gov
 Miles L. Granderson, 504-658-4380 or mlgranderson@nola.gov
 Orleans Parish Sheriff’s Office, Real Estate, 504-679-6380

18. Bidding Process on City Blight and Seizure Cases
 Sheriff Sales require 10% down at auction,
 Must have in the courthouse at the time of the auction
 If don’t have it, then property re-offered and not allowed to bid
 pay the remaining balance within 30 days.
 Cash or Cashier’s Check is required-No personal
checks or corporate checks.

19. Tax Sales Distinguished
 Orleans Parish- City conducts its own tax sale.
 3 year redemption period
 Creates liability for tax purchaser.
 Suit to quiet title must be filed to gain clear title.
 With all Sheriff Sales (including city blight
sales), there is no redemption period. A deed will be
given to the successful bidder upon payment of the
full auction bid.

20. YOUR QUESTIONS

21. 2nd Method of Vacant Property Acquisition
NEW ORLEANS
REDEVELOPMENT AUTHORITY

22. New Orleans Redevelopment Authority (NORA)
3 Ways to Acquire Property from NORA
• Live Auction- in person or online
– Individual who plans to owner occupy or Developer
• Lot Next Door
– Adjacent Property Owner
• Community Use
– Neighborhood Association, Community Groups, &
Nonprofits

23. NORA Auction
What is it?
• NORA has an inventory of properties that
they auction in phases
• Nearly 4000 properties that NORA is
tasked with disposing of were acquired
from Road Home buyouts

24. NORA Auction
Day of Auction After Auction
• Live Auction-in • Pay all funds within
person or online 30 Days
• Bids start at $1000 • Begin Rehab/
• 10% Down payment Construction within
• $500 certified 1yr
funds • Receive Insurable
Title

25. NORA Auction- Gilmore Auction
Gilmore Hosts
Auction
•Go to Gilmore’s
website for
location, time, and
additional
information
http://gilmoreauction.com/

26. NORA Auction- Map BOH’s Website
Receive Info
from BOH
•Go to Beacon of
Hope’s website to see
latest NORA auction
map
•Join Beacon of Hope’s
newsletter to receive
NORA auction updates
http://www.beaconofhopenola.org/maps

27. NORA- Lot Next Door
Contact a NORA
Representative
•Adjacent Owner has
first right of refusal
•Build a house or keep
as a side yard
Side Yard
•Growing Home
Program-
Receive up to
$10,000 for
qualified expenses

28. NORA- Community Use
Contact a NORA
Representative
•Decide on a project-
community garden,
orchard, or even
rainwater mitigation
•Secure funding for
insurance- If you plan
on implementing a
community garden
call Parkway Partners
•Sign a lease with
NORA

29. 3rd Method of Vacant Property Acquisition
TAX SALE

30. Tax Sale
What is it?
A tax title sale is the sale of properties that have
delinquent taxes due and owing the political
subdivision. These properties are sold to the public
for the amount of delinquent taxes due, plus any
accrued interest, penalties, costs and other
statutory impositions.
More Information
Read Civic Source’s Process Guide on their
website before starting the process
http://www.civicsource.com/content/taxtitlesaleguide

31. Tax Sale- Why Purchase a Tax Title
• Investment- If the property is redeemed, the
owner pays the purchase price, a 5% penalty, and
1% per month
• Acquire Ownership after the Redemption
Period- the owner has 3 years (18 months if
blighted) to pay the back taxes, penalties, and
interest
• Improve your quality of life- Neighbors or
community groups can reduce blight in the
short term and have an area after quieting title

32. Tax Sale- BOH Map
Find a Property
and Research
•Once a year the City
conducts a tax sale
through Civic Source.
•Go to Beacon of
Hope’s website to
view tax sale
properties in you
neighborhood.
•Research property to Click on the link to go directly to Civic
see if it has other Source’s website
judgments against
it, i.e., code liens. http://www.beaconofhopenola.org/maps

33. Tax Sale- Process
Civic Source
•Create an account
•Find a property
•Bid on a property- Be
aware of the
percentage bid
•Pay through Civic
Source
http://www.civicsource.com

34. Tax Sale- Process
After Purchase
•Pay taxes for 3 years
•Notice the Owner
•Maintain Property
•Quiet Title
You should obtain
legal advice as to your
rights and obligations
Maintaining the Property
as a tax sale Pursuant to La. R.S. 47:2158, the tax sale purchaser shall have a privilege
purchaser. on the property for the costs of complying with the order of the political
subdivision. To preserve this privilege, the purchaser shall file the writ of
possession with the recorder of mortgages of the parish in which the
property is located within fifteen days after its issuance.

35. Tax Sale- Reasons for Concern
• Zero return on investment- Owner might
not redeem the property
• 3 year redemptive period- It may be too
long to wait
• Cost of Maintaining Property- If it is a
structure, the cost of maintaining the property
may exceed budget. Difficult to recover funds
spent on repairing home
• Uninsurable Title- Title insurance (required
by banks) may be difficult to obtain

36. Tax Sale- Concerns Addressed
• Avoid buying a tax sale with a structure
on the property
• Have a plan in place if you acquire the
property in 3 years- Side yard or community
space
• Maintain Property to avoid fines- Code
liens will add to the cost of the tax sale

37. Tax Sale- A Tool to Improve Quality of Life
Ideal Situation
• Purchaser
Adjoining Owner or
Community Group
• Property Condition
Purchase and keep as
a vacant lot
• Total Cost in 3
yrs
Purchase when cost is
reasonable (less than
the value of the lot)

38. Contact Information
Jason Stopa
jstopa@beaconofhopenola.org
Laura Mellem
lmellem@beaconofhopenola.org
504.309.5120
145 Robert E. Lee Blvd., Suite 200
New Orleans, LA 70124