§ 150-78. Procedure for sale of adjudicated properties to nonprofit organizations.

(a)

Authority; conditions for sale. Upon adjudication of property to the city for nonpayment of taxes, the city may sell the property to a nonprofit organization having a 501(c)(3) status by the Internal Revenue Code or to a first-time homebuyer, provided that the purchaser shall agree to renovate the property in accordance with this section.

(b)

Appraisal of property. The city shall identify a qualified appraiser to assess the fair market value of the property.

(c)

Notice of appraised value and intent to sell; right to conduct another appraisal.

(1)

At least 30 days prior to the sale of the property, the city shall give notice of the appraised value and the intent to sell to the owner of record, to any person having a legally protected property interest in such property whose name and address can be reasonably ascertained, and to any person who has filed a request for notice in the mortgage records of the parish. Thereafter, any party receiving such notice has 15 days within which to conduct a second appraisal.

(2)

If the value of the second appraisal is in conflict with the original appraisal, the city may conduct a third appraisal to resolve the issue of the fair market value of the property. The negotiated sale price shall not be less than the final appraised value of the property.

(3)

The provisions of R.S. 33:2870 through 33:2876 shall apply to a sale of property pursuant to this section.

(d)

Eligible persons or organizations to purchase property; qualifications.

(1)

Property adjudicated to the city may be sold to a nonprofit organization if that organization:

a.

Expresses homeownership as one of its purposes in its articles of incorporation;

b.

Enjoys tax-exempt status under Section 501(c)(3) of the Internal Revenue Code;

c.

Is registered as a nonprofit organization with DHND;

d.

Provides the city with a financial statement of the previous year; and

e.

Provides the city with a work plan for the property that has been deemed satisfactory by DHND, and which includes the following:

1.

A specified purpose for the property purchased;

2.

A rehabilitation schedule for completion of individual renovation projects on the property; however, an extension of such schedule may be granted pending proof of extenuating circumstances; and

3.

A time plan for completion of the overall renovation of the property; however, such plan shall not exceed six months.

(2)

Property adjudicated to the city may be sold to a first-time homebuyer if that homebuyer:

a.

Agrees to renovate the property in compliance with the Minimum Housing Standards Code;

b.

Agrees to participate in a recognized DHND first-time homebuyer program;

c.

Provides the city with a work plan for the property that has been deemed satisfactory by DHND, and which includes the following:

1.

A specified purpose for the property purchased;

2.

A rehabilitation schedule for completion of individual renovation projects on the property; however, an extension of such schedule may be granted pending proof of extenuating circumstances; and

3.

A time plan for completion of the overall renovation of the property; however, such plan shall not exceed six months;

d.

Agrees to reside on the property, and shall establish proof of residence by submitting water bills, utility bills, telephone bills and other such documentation including:

1.

Sleeping in the residence;

2.

Storing clothing, toiletries, household appliances and similar personal property of daily utility in their residence;

3.

Registered to vote; and

4.

Directly receives and opens most mail addressed to him there.

(3)

Upon failure by a nonprofit organization or a first-time homebuyer to comply with any of the conditions of paragraphs (1) and (2), respectively, of this section, the city shall initiate proceedings to void the sale in accordance with state law.

(M.C.S., Ord. No. 17,460, § 1, 3-21-96)