Ever consider acquiring and rehabbing a city-owned property in New Orleans?
The City of New Orleans. "The Crescent City". "The Big Easy".
In 2010, The Big Easy had an estimated 43,755 blighted residential properties, as well as over 9,000 vacant-but-habitable housing units. The nine-thousand-plus vacant-but-habitable homes make up just about 25% of all residential homes in The Crescent City. OK, so how does one buy a vacant property to rehab in the city that gave us Harry Connick Jr.?
In 1960, over 600,000 people called The Big Easy home. Today, nearly 400,000 people live in The Crescent City. The French Quarter, Mardi Gras, and Bourbon Street. The Crescent City also has one of the world's busiest ports. While few would mistake The Crescent City for being a sister city of Houston, as a state, Louisiana ranks fifth in terms of oil production, and eighth in terms of oil reserves. OK, so how does one buy a vacant property to rehab in the city that gave us Harry Connick Jr.?
"Location, location, location..." Over forty percent of the vacant single-family homes in The Big Easy, and over fifty percent of the vacant multi-family properties in The Crescent City, are located within National Register Historic Districts. And over sixty percent of vacant multi-family properties in The Big Easy are located within state-designated Cultural Districts. The average vacant home in The Crescent City stays vacant for three years. OK, so how does one buy a vacant property to rehab in the city that gave us Harry Connick Jr.?
Between the years 2010 and 2014 The Big Easy attracted, on average, over ten-thousand new residents per year. Since 2010, The Crescent City has partnered with local community organizations to rehabilitate hundreds of properties which are owned by low income homeowners. OK, so how does one buy a vacant property to rehab in the city that gave us Harry Connick Jr.?
Over eight-hundred Crescent City properties have been sold through the City's Lot Next Door program. OK, so how does one buy a vacant property to rehab in the city that gave us Harry Connick Jr.?
Vacant, abandoned, distressed, and now non-performing properties are being acquired and rehabbed in The Big Easy. OK, so how does one buy a vacant property to rehab in the city that gave us Harry Connick Jr.?
Working with the Neighborhood Stabilization Program, the New Orleans Redevelopment Authority has provided funding for the construction of over four-hundred-fifty units. OK, so how does one buy a vacant property to rehab in the city that gave us Harry Connick Jr.?
The New Orleans Redevelopment Authority has made nearly eight-hundred Crescent City properties available through the auction process. OK, so how does one buy a vacant property to rehab in the city that gave us Harry Connick Jr.?
The Big Easy sells city-owned properties by holding auctions. The process to get a Crescent City property to an auction starts with the Division of Real Estate and Records. The Division of Real Estate and Records is overseen by The Department of Property Management. OK, so how does one buy a vacant property to rehab in the city that gave us Harry Connick Jr.?
The first step? The property which is deemed to not be in productive use is identified. Then, a request can be made to The Division of Real Estate and Records that the individual property - the property having been deemed to not be in productive use - be sold at a public auction.
If the Big Easy property is deemed to be saleable, the Planning Advisory Committee reviews the property auction request. This review is then followed by an allotted time which is set aside for comments, and for recommendations.
If the proposed sale of the Crescent City property - sale, by way of auction - is approved by the Planning Advisory Committee, the request is then submitted to the City Planning Commission. The City Planning Commission has a few options.
The City Planning Commission can either approve, conditionally approve, or deny the request to have the property sold through an auction. The City Planning Commission also establishes terms and conditions which must be met prior to, or as part of, the sale of the property, by auction.
With City Planning Commission approval - or with a conditional approval - the fair market value of the property is arrived at. This takes place through the completion of an appraisal of the property.
City Council will either approve or deny the proposed request to have the property sold through the auction. Should City Council approve the auction request, an Ordinance - the Ordinance will include a property description and the appraisal value of the property - is introduced to City Council. Should City Council then approve the Ordinance, should the Mayor proceed to approve and pass the Ordinance, an auction date and time is set. So too, is a day and a time to have an "open house” for the property. The auction takes place in City Council Chambers at City Hall.
The starting bid for the property at the auction will be the fair market value of the property. The fair market value of the property is determined through the appraisal.
A non-refundable deposit of ten percent - the ten percent deposit is made in the form of cash, a certified check, or money order - of the sale price of the property is required to be made by the winning bidder.
The act of sale, applicable to the property, is sent to the City Law Department for review and signature. The purchaser of the property has one-hundred twenty days to complete the sale. Taking into account the ten percent deposit which has already been made, the remainder of the proceeds making up the dollar amount of the sale price of the property, will be due at the signing of the act of sale.