The City may sell (through public auction) immovable property (real estate) that is no longer needed for public purpose. These particular auctions are different than the Sheriff’s auctions or NORA’s auctions. The process for bringing property any city owned property to auction is lengthy. The steps are as follows:
No. These are properties that are owned and were used by the City but are determined “no longer needed for public purpose.”
In accordance with Article 7, Section 14 of the Louisiana Constitution, the City cannot donate non-housing property. This office generally does not sell housing.
The Home Rule Charter requires that property be sold at public auction, with very limited exceptions.
Generally the property zoning can be changed to make a property consistent with the surrounding neighborhood through application to the City Planning Commission. Please contact the Planning Commission for further information.
Additional costs, over the winning bid must be paid to complete the sale. These costs include: appraisal, Clerk of Court promulgation costs, City Notary fees, possible resubdivision fees and other possible costs.
10% of the bid price is due in cash, money order, or certified funds within one hour of the auction’s completion.
Cash, certified check, or money order ONLY
The property will be offered to the second highest bidder.
The deposit is NOT refundable. It is considered an earnest payment.
The City of New Orleans cannot contract with convicted felons or any party that owes taxes to the City of New Orleans.
Also, required paperwork will be distributed to the winning bidder. It includes a tax clearance affidavit, vendor registration form, and other required information. All documents must be completed prior to the Act of Sale date.
Some property sales have restrictions that prevent everyone from bidding at auction. For example, a parcel that not a legal lot and is too small to allow for construction may only be available to neighboring property owners, who would be required to “resubdivide” the parcel into their existing parcels. City Planning Commission sets the restrictions for property sales (Home Rule Charter Section 6-306). Also, City of New Orleans' employees and their immediate families are not permitted to contract with the City.
Depending on when the Division of Real Estate and Records receives the appropriate paperwork from the purchaser, a transfer may take place within three months.
The City may sell non-housing property to other governmental entities through private sale for fair market value. Other limited exceptions exist.
The starting bid is set at fair market value.
The Division only sells property that is owned by the City and no longer needed for public purpose. Contact Real Estate and Records at (504) 658-3615.
The following terms shall be in the Act of Sale:
Purchaser of the Property on this ___ day of ______________, 2013, hereby agrees to maintain, renovate, develop, and improve the Property within the time frame and terms below. All work done upon the Property shall be in accordance with the requirements of the New Orleans City Code and the New Orleans Building Code, including any applicable historic district provisions. Purchase of the Property is subject to the following additional conditions:
a) Within sixty (60) days of recordation of Act of Sale, Purchaser shall clean, repair, secure, or otherwise remove the conditions of blight upon the property.
b) Within eighteen (18) months from recordation of Act of Sale, Purchaser shall obtain a Certificate of Occupancy from the Department of Safety and Permits.
If, in the determination of the Department of Property Management through a recommendation of the Department of Safety and Permits and/or the Department of Code Enforcement, purchaser has failed to comply with any condition set forth above, it shall notify the Purchaser and if Purchaser fails to correct said violations within 30 days, sale of the Property shall be dissolved of right, title shall revert to the City of New Orleans, and all sums previously paid by Purchaser, including the Purchase price, shall be forfeited by Purchaser and retained by the City of New Orleans as liquidated damages. Purchaser expressly waives formal demand, notice of default, citation and legal delays, consents to summary procedure, and confesses judgment rescinding and dissolving sale, reverting title, and forfeiting all sums previously paid.
Once the conditions set forth hereinabove have been satisfied, the City of New Orleans shall execute such documents as are necessary to release this right of reversion from title.
The City of New Orleans hereby agrees that it shall subordinate the right of transfer set forth above in favor of Purchaser’s construction lender and, for that purpose, does hereby consent and agree to execute all reasonable documents, including an Act of Subrogation to subordinate the City of New Orleans’ interest in the Property to Purchaser’s construction lender.