Agency finds workaround for receiving, selling abandoned properties
A state-affiliated agency is expected Tuesday to send the New Orleans Redevelopment Authority the first $450,000 of $25 million held in escrow so NORA can finally start putting hundreds of Road Home buyout lots back into commerce. The long-awaited money will help launch a more aggressive effort to sell abandoned lots to developers.
New Orleans Redevelopment Authority Director Jeff HebertThe Louisiana Land Trust, which controls about 3,600 storm-damaged and cleared lots in New Orleans that were purchased by the state from hurricane victims, has had an agreement to transfer the properties to NORA since January, but it's been held up in a state review process.
NORA needs to collect money from the escrow account so it can take title to the properties, maintain and insure them, and appraise them for auctions or direct sales.
In the meantime, NORA Executive Director Jeff Hebert said his hands were tied and hundreds of property transfer agreements are sitting on a shelf that he can't sign. But after Hebert and Land Trust Director Mike Taylor aired their concerns recently, the state Office of Community Development has stepped up to authorize a work-around that lets NORA draw money from the escrow account.
Another batch of 500 Land Trust lots are scheduled to be transferred to NORA on April 1. After using the $450,000 to insure the first set of about 300 properties, Hebert said NORA will be able to collect more of the $3.5 million it plans to spend on the program this year.
The biggest part of the program is a 16-person staff NORA plans to dedicate to maintaining the lots and selling them to private developers.
"We want to get rid of the properties, but we have to make sure that's done in a fair, equitable and balanced way," said Kevin Hanna, NORA's director of real estate development.
To that end, Hebert said he wants NORA staff to overhaul the website so prospective developers can see what lots are available at www.noraworks.org.