§ 33:4625 — Parish Redevelopment Law

Louisiana § 33:4625

• Jurisdiction: Louisiana
• Title 33: Municipalities and Parishes

Text

A. Short title
This section may be referred to as the "Parish Redevelopment Law."
B. Findings and declaration of necessity
It is hereby found and declared that:
(a) There exists in some or all of the parishes of this state areas which have become slum and blighted because of the unsafe, unsanitary, inadequate or overcrowded condition of the structures therein, or because of inadequate planning of the area, or because of physically and/or functionally obsolete structures, or because of excessive dwelling unit density, or because of the lack of proper light and air and open space, or because of faulty street or lot design, or inadequate public utilities or community services, or because of the conversion to incompatible types of land usage;
(b) Such conditions or a combination of some or all of them have and will continue to result in making such areas economic and social liabilities imposing onerous parish burdens which decrease the tax base and reduce tax revenues, harmful to the social and economic well-being of the parish, depreciating property values therein, and thereby depreciating further the general community-wide values;
(c) The prevention and elimination of slums and blight and their causes is a matter of public policy and concern in order that these parishes shall not continue to be endangered by areas which are focal centers of economic and social retardation, and consume an excessive proportion of its revenues because of the extra services required for police, fire, accident and other forms of public protection, services and facilities;
(d) The salvage and renewal of such areas, in accordance with sound and approved plans for their redevelopment, will promote the public health, safety, morals and welfare;
(e) Certain such areas or portions thereof may be susceptible to conservation or rehabilitation by voluntary action and through existing regulatory processes in such a manner that the conditions and evils hereinbefore enumerated may be eliminated, remedied and prevented; and in certain areas blight and slum conditions are beyond remedy or reasonable control through regulatory processes and cannot be effectively dealt with under existing law without additional aids herein allowed; and such conditions often exist in areas and under circumstances in which their assembly for purposes of clearance, replanning and redevelopment is impossible without the exercise of the power of expropriation;
(f) The powers conferred by this section are for public uses, purposes and utility for which public money may be expended, and expropriation authority utilized as necessary and in the public's interest and in conformity with the approved plans of these parishes. The provisions herein provided shall apply for residential, recreational, commercial, industrial or other purposes and otherwise to encourage the provision of healthful homes, a decent living environment and adequate places of employment for the people in any one or all of these powers. Such purposes are hereby declared as a matter of legislative determination.
C. Workable program
Any parish in this state, for the purpose of this section, may formulate a workable program for utilizing appropriate private and public resources to eliminate and prevent the development or spread of slums and urban blight, to encourage needed rehabilitation, and to provide for the redevelopment of slum or blighted areas, or to undertake other feasible parochial activities as may be suitably employed to achieve the objectives of such workable program.
D. Encouragement of private enterprise
Any parish, to the greatest extent it determines to be feasible in carrying out the provisions of this section, shall afford maximum opportunity, consistent with the sound needs of said parish as a whole, to the rehabilitation or redevelopment of the redevelopment area by private enterprise. The parish shall give consideration to this objective in exercising its authority under this section.
E. Submission to election; creation of redevelopment agencies
This legislation will not become operative until submitted to and approved by a majority of the qualified electors voting thereon at an election to be held. The election shall be called by the governing authority of the parish or city, as the case may be, and shall be held in accordance with the general laws of Louisiana governing the authorization of general obligation bonds, except that the right to vote shall not be restricted to tax paying voters and except that the local governing authority shall appoint for each polling place four qualified voters, three of whom shall be designated as commissioners and one as a clerk, to serve at the election. The results of the election shall be promulgated by the local governing authority and, in the event the election favors approval of this section, the local governing authority shall proceed by ordinance within sixty days to activate the agency as set forth hereinbelow. A certificate signed by the chief executive officer and the members of the local governing authority shall then be filed in the office of the secretary of state, and there remain of record, setting forth the result of the election and the adoption of the ordinance activating the agency. In the event the results of the election are against approval of this section, the local governing body shall take no action under this section or otherwise to activate a community redevelopment agency until the expiration of at least one year from the date of the election.
If the results of the referendum election favor approval of this section, the chief executive officer, with the approval of the local governing body, in the manner provided by Paragraph (1) of this subsection, shall appoint commissioners to act as an agency with all of the powers and functions herein specified for community redevelopment agencies.
(1) Appointment and qualification of commissioners. Upon the certification of a resolution declaring the need for an agency to operate, the chief executive officer, of the local governing body, shall appoint as members of the agency, five citizens who shall be residents of the municipality or parish.
(2) Tenure and compensation of commissioners. The members who are first appointed shall serve for terms of one, two, three, four and five years, respectively, from the date of their appointment as shall be specified at the time of their appointment. Thereafter, the term of office shall be five years. A member shall hold office until his successor has been appointed. Vacancies for unexpired terms shall be promptly filled by the appointing power. A commissioner shall receive no compensation for his services but he shall be entitled to out-of-pocket expenses, including traveling expenses, incurred in the discharge of his duties.
(3) Organization of agency. The members of an agency shall select from among themselves a chairman, a vice-chairman, and such other officers as the agency may determine. An agency may employ an executive director and other employees as it may require and shall determine their qualifications and compensation. Three members of an agency shall constitute a quorum for its meetings. Members of an agency shall not be liable personally on the bonds or other obligations of the agency and the rights of creditors shall be solely against such agency.
(4) Interest of commissioners or employees. No commissioner or employee of an agency while serving or at any time thereafter shall acquire interest, direct or indirect, in any redevelopment project or in any property included or planned to be included in any redevelopment area, or in any area which he may have reason to believe may be certified to be a redevelopment area, nor shall he have any interest, direct or indirect, in any contract or proposed contract for materials or services to be furnished or used by an agency, or in any contract with a redeveloper or prospective redeveloper relating directly or indirectly to any redevelopment project. The acquisition of any such interest in a redevelopment project or in any such property or contract shall constitute misconduct in office. If any commissioner or employee of an agency shall already own or control any interest, direct or indirect, in any property later included in any redevelopment project under the jurisdiction of the agency, or has any such interest in any contract for material or services to be furnished or used in connection with any redevelopment project, he shall disclose the same in writing to the agency and such disclosure shall be entered in writing upon the minute books of the agency. Failure to make such disclosure shall constitute misconduct in office.
(5) Removal of commissioners. With the consent of the local governing body, or its chief executive officer, a commissioner may be removed for inefficiency or neglect of duty or for misconduct in office, but only after the commissioner has been given a copy of the charges against him, made by the chief executive officer, or mayor, and has had an opportunity to be heard in person or by counsel before the governing body. In the event of the removal of any commissioner, the chief executive, or mayor, shall file in the office of the clerk a record of the proceedings, together with the charges made against the commissioner and the findings thereon.
F. Authority
The agency shall have all the authority and power necessary or convenient to carry out and effectuate the purposes and provisions of this section, including without limiting the generality of the foregoing, the following authority which shall be in addition to others herein granted:
(1) To undertake and carry out redevelopment projects and related activities within its area of operation; and to make and execute contracts and other instruments necessary or convenient to the exercise of its authority under this section and to disseminate slum clearance and redevelopment information.
(2) To provide or to arrange or contract for the furnishing or repair by any person or agency, public or private, of services, privileges, works, streets, roads, public utilities or other facilities for or in connection with a redevelopment project, to install, construct, and reconstruct streets, utilities, parks, playgrounds, and other public improvements; and to agree to any conditions that it may deem reasonable and appropriate attached to federal financial assistance and imposed pursuant to federal law relating to the determination of prevailing salaries or wages or compliance with labor standards, in the undertaking or carrying out of a redevelopment project and related activities, and to include in any contract let in connection with such a project and related activities, provisions to fulfill such of said conditions as it may deem reasonable and appropriate.
(3) Within its area of operation, to acquire by purchase, lease, option, gift, grant, bequest, devise, by expropriation or otherwise, any real property (or personal property for its administrative purposes) together with any improvements thereon; to hold, improve, clear or prepare for redevelopment any such property; to mortgage, pledge, hypothecate, or otherwise encumber or dispose of any real property; to insure or provide for the insurance of any real or personal property or operations of the governing authority against any risks or hazards, including the power to pay premiums on any such insurance; and to enter into any contracts necessary to effectuate the purpose of this section; but no statutory provision with respect to the acquisition, clearance or disposition of property by public bodies shall restrict the municipality, parish or agency exercising powers thereunder, in the exercise of such functions with respect to a redevelopment project and related activities, unless the legislature shall specifically so state.
(4) With the approval of the local governing body:
(a) Prior to approval of a redevelopment plan, or approval of any modification of the plan, to acquire real property in a redevelopment area, demolish and remove any structures on the property, and pay all costs related to the acquisition, demolition, or removal, including any administrative or relocation expenses.
(b) To assume the responsibility to bear any loss that may arise as the result of the exercise of authority under this subsection in the event that the real property is not made a part of the redevelopment plan or project.
(c) To invest any redevelopment funds held in reserve or in sinking funds or any such funds not required for immediate disbursement, in property or securities in which public bodies may legally invest funds subject to their control; to redeem such bonds as have been issued pursuant to this section at the redemption price established therein or to purchase such bonds at less than redemption price, all such bonds so redeemed or purchased to be cancelled.
(d) To borrow money and to apply for and accept advances, leases, grants, contributions, and any other form of financial assistance from the federal government, the state, parish or other public bodies, or from any sources, public or private, for the purposes of this section, and to give such security as may be required and to enter into and carry out contracts or agreements in connection therewith; and to include in any contract for financial assistance with the federal government for or with respect to a redevelopment project and related activities such conditions imposed pursuant to federal laws as the agency may deem reasonable and appropriate and which are not inconsistent with the purposes of this section.
(5) Within its area of operation, to make or have made all surveys and plans necessary to the carrying out of the purposes of this section and to contract with any person, public or private, in the making and carrying out of such plans and to adopt or approve, modify and amend such plans, which plans may include but are not limited to:
(a) Plans for carrying out a program of voluntary or compulsory repair or rehabilitation of buildings and improvements.
(b) Plans for the enforcement of state and local laws, codes and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition or removal of buildings and improvements.
(c) Appraisals, title searches, surveys, studies and other plans and work necessary to prepare for the undertaking of redevelopment projects and related activities.
(6) To develop, test and report methods and techniques, and carry out demonstrations, and other activities within its area of operation, for the prevention and the elimination of slums and urban blight and for developing and demonstrating new or improved means of providing housing for families and persons of low income and to apply for, accept and utilize grants of funds from the federal government for such purposes.
(7) To prepare plans for and assist in the relocation of persons (including individuals, families, business concerns, non-profit organizations and others) displaced from a redevelopment area, and to make relocation payments to or with respect to such persons for moving and readjustment expenses and losses of property for which reimbursement or compensation is not otherwise made, including the making of such payments financed by the federal government.
(8) To close or cause to be closed, vacate, plan or replan streets, roads, sidewalks, ways or other places; and to plan or cause to be replanned any part of the municipality or parish, and to make payment or reimbursement of reasonable actual costs incurred as a result of utility relocations when such relocations are made necessary in a redevelopment area, after making appropriate adjustment for any improvements or betterments to the utility's facilities made in connection with the relocation.
(9) To sue and to be sued; adopt and have a seal and to alter the same at pleasure; to make and from time to time amend and repeal by-laws, orders, rules and regulations in order to effectuate the provisions of this section.
(10) To enter into agreements and contracts with the local governing body or any other public body, in pursuance of the intent of this section.
(11) To make available to the government and to the municipality or parish or any appropriate agency, the recommendation of the agency affecting any area in its field of operation or property therein, which it may deem likely to promote the public health, morals, safety or welfare.
(12) To exercise all or any part or combination of powers herein granted.
G. Preparation and adoption of redevelopment plan
The agency shall not institute a redevelopment plan for an area unless the local governing body, by resolution, has determined such area to be a slum or a blighted area or a combination thereof and designated such area as appropriate for a redevelopment project. The local governing body shall not approve a redevelopment plan until a general plan for the parish or municipality has been prepared. The agency shall not acquire real property for a redevelopment project, except as provided in Subsection (4)(a) and (b), unless the local governing body has approved the redevelopment plan as provided herein.
(1) Redevelopment plan. The municipality or parish may prepare or cause to be prepared a redevelopment plan, and it is hereby authorized, in connection therewith, to apply for and receive planning advances from the federal government or other bodies. Prior to its approval of a redevelopment plan, the local governing body or agency shall submit such plan to the planning commission of the municipality or parish for review and recommendation as to its conformity with the general plan for the development of the municipality or parish as a whole. The planning commission shall submit its written recommendations with respect to the proposed redevelopment plan to the local governing body or agency within thirty days after receipt of the plan for review. Upon receipt of the recommendations of the planning commission, or if no recommendations are received within the said thirty days, then without such recommendations the local governing body or agency may proceed with the hearing on the proposed redevelopment plan described in Paragraph (2) hereof.
(2) Public hearing. The local governing body shall hold a public hearing on the redevelopment plan after public notice thereof by publication at least ten days prior to the hearing in a newspaper having a general circulation in the parish or municipality. The notice shall describe the time, date, place and purpose of the hearing, shall generally identify the area covered by the plan, and shall outline the general scope of the project under consideration.
At the hearing the governing body shall afford an opportunity to all persons or agencies interested to be heard and shall receive, make known and consider recommendations in writing with reference to the redevelopment plan.
The governing body shall approve, reject or make recommendations for changes in the redevelopment plan as submitted. The governing body shall not approve a redevelopment plan unless it is satisfied that adequate provisions will be made to rehouse displaced families, if any, without undue hardship.
Upon approval by the governing body of the redevelopment plan, the parish or municipality or agency is authorized to take such action as may be necessary to carry it out.
(3) Modification of plans. A redevelopment plan may be modified at any time, but if it is modified after the lease or sale by the agency of real property in the redevelopment area, such modification shall be subject to such rights as a lessee or purchaser or his successor or successors in interest may be entitled to assert.
(4) Disaster areas. Notwithstanding any other provision of the section, whenever the local governing body has certified that an area is in need of redevelopment or rehabilitation as a result of an act of God, fire, bombing, riot or other catastrophe, the local governing body may approve a redevelopment plan or project with respect to such area without regard to the provisions of Paragraphs (1) and (2) of this subsection.
H. Purchase of real property in redevelopment area
(1) Subject to the requirements of Subsection B hereof, an agency may acquire by purchase or by the exercise of the power of expropriation any real property, or interest therein, which it may deem necessary for or in connection with a redevelopment plan or project under this section. An agency may exercise the power of expropriation in the manner provided in the Civil Code relative to the transfer of property, and the laws supplementary or amendatory thereto, or it may exercise the power of expropriation in the manner now or which may be hereafter provided by any other statutory provision for the exercise of the power of expropriation. Property already devoted to a public use may be purchased in a like manner, but no real property belonging to the United States, the state or any political subdivision of the state may be acquired without its consent.
(2) In any proceeding to fix or assess compensation for damages for the purchase of property, or any interest therein, through the exercise of expropriation, evidence or testimony bearing upon the following matters shall be admissible and shall be considered in fixing such compensation or damages, in addition to evidence or testimony otherwise admissible: (i) Any use, condition, occupancy or operation of such property, which is unlawful or violative, or subject to elimination, abatement, prohibition or correction, under any law or any ordinance or regulatory measure of the state, parish, municipality or other political subdivision, or any agency thereof, in which such property is located, as being unsafe, substandard, insanitary or otherwise contrary to the public health, safety or welfare; (ii) the effect on the value of such property, or any such use, condition, occupancy, or operation, or of the elimination, abatement, prohibition or correction of any such use, condition, or operation; (iii) the foregoing testimony and evidence shall be admissible notwithstanding that no action has been taken by any public body or public officer toward the abatement, prohibition, elimination or correction of any such use, condition, occupancy or operation. Testimony or evidence that any public body or public officer charged with the duty or authority so to do has rendered, made or issued any judgment, decree, determination, or order for the abatement, prohibition, elimination or correction of any such use, condition, occupancy, or operation shall be admissible and shall be prima facie evidence of the existence and character of such use, condition or operation.
I. Disposition of property in redevelopment area
(1) An agency may sell, lease or otherwise transfer real property or any interest therein acquired by it in revitalization areas for residential, recreational, commercial, industrial or other uses or for public use, in accordance with the redevelopment plan, subject to such covenants, conditions and restrictions, including covenants running with the land, as it may deem to be necessary or desirable to assist in preventing the development or spread of future slums or blighted areas or to otherwise carry out the purposes of this section. The purchasers or lessees and their successors and assigns shall be obligated to devote such real property only to the uses specified in the redevelopment plan, and may be obligated to comply with such other requirements as the agency may determine to be in the public interest, including the obligation to begin within a reasonable time any improvements on such real property required by the redevelopment plan. Such real property or interest shall be sold, leased or otherwise transferred at not less than its fair value for uses in accordance with the redevelopment plan. In determining the fair value of real property for uses in accordance with the redevelopment plan, an agency shall take into account and give consideration to the use provided in such plan; the restrictions upon and the covenants, conditions and obligations assumed by the purchaser or lessee; and the objectives of such plan for the prevention of the recurrence of slum or blighted areas. The agency, in any instrument of conveyance to a private purchaser or lessee, may provide that such purchaser or lessee shall be without power to sell, lease or otherwise transfer the real property without the prior written consent of the agency until he has completed the construction of any and all improvements which he has obligated himself to construct thereon. Real property acquired in accordance with the provisions of the redevelopment plan shall be transferred as rapidly as feasible in the public interest, consistent with the carrying out of the provisions of the project plan. Such plan and any substantial modification of such plan shall be filed as a public record in the office of the clerk of the parish or municipality in which the agency exists, and any conveyances, encumbrances or other contracts may incorporate the provisions thereof by reference which shall afford notice thereof to all parties.
(2) Competitive bidding procedures. An agency shall dispose of real property in a redevelopment area to private persons only under such reasonable competitive bidding procedures as it shall prescribe subject to the provisions hereinafter set forth. An agency must by public notice, by publication once each week for two consecutive weeks in a newspaper having a general circulation in the community, or if there is no newspaper by posting for at least two weeks in a public place, fifteen days prior to the execution of any contract to sell, lease, or otherwise transfer real property and prior to the delivery of any instrument of conveyance with respect thereto under the provisions of this section, invite proposals from and make available all pertinent information to private redevelopers or any persons interested in undertaking to redevelop or rehabilitate a redevelopment area or any part thereof. Such notice shall identify the area, or portion thereof, and shall state that proposals shall be made by those in interest within thirty days after publication of said notice, and that such further information as is available may be obtained at such office as shall be designated in said notice. The agency shall consider all such redevelopment or rehabilitation proposals and the financial and legal ability of the persons making such proposals to carry them out, and may negotiate with any persons for proposals for the purchase, lease or other transfer of any real property acquired by the agency in the redevelopment area. The agency may accept such proposal as it deems to be in the public interest and in furtherance of the purposes of this section; provided, however, that a notification of intention to accept such proposal shall be filed with the governing body not less than thirty days prior to any such acceptance. Such notice shall be a public record and shall include (1) the name of the redeveloper or purchaser, together with the names of its officers and principal members or shareholders and investors and other interested parties, (2) the redeveloper's estimate of the cost of any residential development and rehabilitations, and (3) the redeveloper's estimate of rentals and sales prices of any proposed housing involved in such redevelopment and rehabilitation. Thereafter, the agency may execute such contract in accordance with the provisions of Subsection (1) and deliver acts of sale, leases and other instruments and take all steps necessary to effectuate such contract.
(3) Temporary operation of real property. An agency may temporarily operate, maintain or lease real property acquired by it in a redevelopment area for or in connection with a redevelopment project pending disposition of the property as authorized in this section without regard to the provisions of Paragraph (a) 1 above, for such uses and purposes as may be deemed desirable even though not in connection with the redevelopment plan.
(4) Any real property acquired pursuant to Subsection (B), Paragraph (4) 2 may be disposed of without regard to other provisions of this section if the local governing body has consented to the disposal. Real property acquired in accordance with the redevelopment plan may be disposed of to a public body for public reuse without regard to the provisions of this subsection.
(5) Notwithstanding any other provisions of this section where the parish or municipality is situated in an area designated as a redevelopment area under the Federal Area Redevelopment Act (Public Law 87-27), 3 or any act supplementary thereto, land in a redevelopment project area designated under the redevelopment plan for industrial or commercial uses may be disposed of to any public body or nonprofit corporation for subsequent disposition as promptly as practical by the public body or corporation for redevelopment in accordance with the redevelopment plan, and only the purchaser from or lessee of the public body or corporation, and their assignees, shall be required to assume the obligation of beginning the building of improvements within a reasonable time. Any disposition of land to a public body or corporation under this paragraph shall be at its fair value for uses in accordance with the redevelopment plan.
J. Issuance of bonds
(1) The parish, municipality or agency shall have the power to issue bonds from time to time at its discretion to finance the undertaking of any redevelopment project under this section, including, without limiting the generality thereof, the payment of principal and interest upon any advances for surveys and plans or preliminary loans, and shall also have power to issue refunding bonds for the payment or retirement of bonds previously issued by it. Bonds shall be made payable as to both principal and interest solely from the income, proceeds, revenues and funds of the municipality derived from or held in connection with its undertaking and carrying out of redevelopment projects under this section, but payment of the bonds, both as to principal and interest, may be further secured by a pledge of any loan, grant or contribution from the federal government or other sources in aid of any redevelopment projects, or any part thereof, title to which is in the municipality or parish.
(2) Bonds issued under this subsection shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restrictions, and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance or sale of bonds. Bonds issued under the provisions of this section are declared to be issued for an essential public and governmental purpose and, together with interest thereon and income therefrom, shall be exempted from all taxes.
(3) Bonds issued under this subsection shall be authorized by resolution or ordinance of the local governing body or agency and may be issued in one or more series and shall bear such date or dates, be payable upon demand or mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form either with or without coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption with or without premiums, be secured in such manner and have such other characteristics as may be provided by such resolution or ordinance, or trust indenture or mortgage issued pursuant thereto.
(4) Bonds may be sold at not less than par at public sales held after notice published prior to such sale in a newspaper having a general circulation in the area of operation and in such other medium of publication as the municipality or parish may determine or may be exchanged for other bonds on the basis of par; but bonds may be sold to the federal government at private sale at not less than par and, in the event less than all of the authorized principal amount on the bonds is sold to the federal government, the balance may be sold at private sale at not less than par at an interest cost to the parish or municipality not to exceed the interest cost to the municipality or parish of the portion of the bonds sold to the federal government.
(5) In case any of the public officials of the municipality or parish whose signature appears on any bonds or coupons issued under this section shall cease to be such official before the delivery of the bonds, such signature shall, nevertheless, be valid and sufficient for all purposes, the same as if the official had remained in office until delivery. Any provisions of any law to the contrary notwithstanding, any bonds issued pursuant to this section shall be fully negotiable.
(6) In any suit, action or proceeding involving the validity or enforceability of any bond issue under this section or the security therefor, any bond reciting in substance that it has been issued by the parish or municipality in connection with a redevelopment project, as herein defined, shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of this section.
K. Bonds as legal investment
All banks, trust companies, bankers, savings banks and institutions, building and loan associations, savings and loan associations, investment companies and other persons carrying on a banking or investment business; all insurance companies, insurance associations, and other persons carrying on an insurance business; and all executors, administrators, curators, trustees and other fiduciaries, may legally invest any sinking funds, moneys or other funds belonging to them or within their control in any bonds or other obligations issued by the municipality pursuant to this section or by the redevelopment agency vested with redevelopment authority under Subsection (I) of this section, but the bonds and other obligations shall be secured by an agreement between the issuer and the federal government in which the issuer agrees to borrow from the federal government and the federal government agrees to lend to the issuer, prior to the maturity of such bonds or other obligations, moneys in any amount which together with any other moneys irrevocably committed to the payment and principal and interest on the bonds or other obligations will suffice to pay the principal of the bonds or other obligations with interest to maturity thereon, which moneys under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on the bonds or other obligations at their maturity. Bonds and other obligations shall be authorized security for all public deposits. It is the purpose of this subsection to authorize any persons, political subdivisions and officers, public or private, to use any funds owned or controlled by them for the purchase of any bonds or other obligations. Nothing contained in this subsection with regard to legal investments shall be construed as relieving any persons of any duty of exercising reasonable care in selecting securities.
L. Property exempt from taxes and from levy and sale by virtue of an execution
(1) All property of the parish, municipality or agency, including funds owned or held by it for the purpose of this section shall be exempt from levy and sale by virtue of an execution and no execution or other judicial process shall issue against the same nor shall judgment against the parish, municipality or agency be a charge or lien upon such property; but the provisions of this subsection shall not apply to or limit the right of obligees to pursue any remedies for the enforcement of any pledge or lien given pursuant to this section by the parish, municipality or agency on its rents, fees, grants or revenues from redevelopment projects.
(2) The property of the parish, municipality or agency acquired or held for the purposes of this section is declared to be public property used for essential public and governmental purposes and such property shall be exempt from all taxes of the municipality, the parish, the state or any political subdivision thereof; but such tax exemption shall terminate when the parish, municipality or agency sells, leases or otherwise disposes of the property in a redevelopment area to a purchaser or lessee which is not a public body entitled to tax exemption with respect to the property.
M. Cooperation by public bodies with a redevelopment agency
(1) For the purpose of aiding in the planning, undertaking or carrying out of a redevelopment project and related activities authorized by this section, any public body may, upon such terms, with or without consideration as it may determine:
(a) Dedicate, sell, convey or lease any of its interest in any property or grant easements, licenses or other rights or privileges therein to the municipality or parish.
(b) Incur the entire expense of any public improvements made by such public body in exercising the powers granted in this subsection.
(c) Do any and all things necessary to aid or cooperate in the planning or carrying out of a redevelopment plan and related activities.
(d) Lend, grant or contribute funds to the municipality or parish and borrow money and apply for and accept advances, loans, grants, contributions and any other form of financial assistance from the federal government, the state, parish or other public body, or from any other source.
(e) Enter into agreements which may extend over any period notwithstanding any provision or rule of law to the contrary with the federal government or other public body respecting action to be taken pursuant to any of the powers granted by this section, including the furnishing of funds or other assistance in connection with a redevelopment project and related activities.
(f) Cause public buildings and public facilities, including parks, playgrounds, recreational, community, educational, water, sewer or drainage facilities, or any other works which it is otherwise empowered to undertake to be furnished; furnish, dedicate, close, vacate, pave, install, grade, regrade, plan or replan streets, roads, sidewalks, ways or other places; plan or replan, zone or rezone any part of the public body or make exceptions from building regulations.
If at any time title to or possession of any redevelopment project is held by any public body or governmental agency, other than the municipality or parish which is authorized by law to engage in the undertaking, carrying out, or administration of redevelopment projects and related activities, the provisions of the agreements referred to in this subsection shall inure to the benefit of and may be enforced by such public body or governmental agency. As used in this paragraph, the term parish or municipality shall also include a redevelopment agency vested with all of the redevelopment authority pursuant to the provisions of Subsection (I).
(2) For the purposes of aid in the planning, undertaking, or carrying out of a redevelopment project and related activities of a redevelopment agency hereunder, the municipality or parish may in addition to its other powers and upon such terms, with or without consideration, as it may determine do and perform any or all of the actions or things which, by the provisions of Paragraph (1) of this subsection, a public body is authorized to do or perform, including the furnishing of financial and other assistance.
(3) For the purposes of this subsection, or for the purpose of aiding in the planning, undertaking, or carrying out of a redevelopment project and related activities of the municipality, such municipality may in addition to any authority to issue bonds pursuant to Subsection (J) issue and sell its general obligation bonds. Any bonds issued by the municipality pursuant to this section shall be issued in the manner and within the limitation prescribed by the applicable laws of this state for the issuance and authorization of general obligation bonds by the municipality. Nothing in this subsection shall limit or otherwise adversely affect any other subsection of this section.
(4) Without limiting the generality of any of the foregoing provisions of this section, but subject to any limitation now or hereafter provided by the applicable provisions of the Constitution of Louisiana and, in the case of any home-rule municipality, the applicable provisions of its home-rule charter, the parish or municipality may (a) appropriate such of its funds and make such expenditures of its funds as it may deem necessary for it to exercise or undertake any of the powers, functions or activities mentioned in this Section, including particularly its powers, functions and activities mentioned in the foregoing subsections of this subsection, and (b) levy taxes and assessments to enable it to undertake, carry out or accomplish any of its powers, functions or activities mentioned in this section including particularly its powers, functions and activities mentioned in the foregoing provisions of this subsection.
N. Title of purchase
Any instrument executed by the municipality, parish or agency purporting to convey any right, title or interest in any property under this section shall be conclusively presumed to have been executed in compliance with provisions of this section insofar as title or other interest of any bona fide purchasers, lessees or transferees of the property is concerned.
O. Exercise of authority in carrying out redevelopment projects and related activities
(1) In lieu of the appointment of commissioners to act as an agency as provided in Paragraphs (1) through (5) of Subsection E, a municipality or parish may elect to exercise the authority specified in this Section through a redevelopment agency heretofore authorized in the municipality or parish by a special or local act. When the municipality or parish determines by ordinance to have such authority exercised through a redevelopment agency heretofore authorized by a special or local act, such agency may thereafter operate under the authority specified in this Section, and such agency as now or hereafter created shall have all of the powers and functions of a redevelopment agency created pursuant to Subsection E.
(2) As used in this subsection, the term "redevelopment" shall include rights, powers, functions and duties of a municipality or parish under this section except the following:
(a) The authority to determine an area to be a slum or blighted area or combination thereof and to designate such area as appropriate for a redevelopment project and to hold any public hearing required with respect thereto.
(b) The authority to approve:
(i) Redevelopment plans and modifications thereof.
(ii) General neighborhood renewal plans and community-wide plans or programs for redevelopment and rehabilitation.
(iii) The acquisition, demolition, removal or disposal of property as provided in Subsection B, Paragraph (4). 2
(c) The authority to establish a general plan for the locality as a whole.
(d) The authority to carry out a program of code enforcement.
(e) The authority to make the determinations and findings provided for in Subsections A and C. 4
(f) The authority to issue general obligation bonds under Subsection (J).
(g) The authority to assume the responsibility to bear loss as provided in Subsection B, Paragraph (4). 2
(h) The authority to appropriate funds, levy taxes and assessments and to exercise other authority provided for in Subsection B(1). 5
P. Definitions
As used in this Section the following terms shall have the meaning herein ascribed to them.
(1) "Agency" or "redevelopment agency" means a public agency created or authorized by Subsection E or Subsection O of this Section to undertake and carry out redevelopment projects and related activities.
(2) "Local governing body" means the council, police jury or commission charged with governing the parish or municipality.
(3) "Public body" means the state and any parish or municipality; and any board, commission, authority, agency, district, subdivision or department, instrumentality, corporate or otherwise, of the foregoing.
(4) "Chief executive" or "mayor" means the officer having the duties customarily imposed upon the executive head of the municipality or parish.
(5) "Municipality" means incorporated towns or cities.
(6) "Clerk" means the clerk, secretary or other official who is the custodian of the official records of the local governing body.
(7) "Federal government" means any department, agency or instrumentality, corporate or otherwise, of the United States of America.
(8) "Slum area" means an area in which there is a predominance of buildings or improvements, whether residential or nonresidential, which by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation, light, air, sanitation, or open space, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire and other causes, or an area of open land which, because of its location and/or situation, is necessary for sound community growth, by replatting and planning development, for predominantly residential uses, or any combination of such factors is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and is detrimental to the public health, safety, morals or welfare.
(i) "Blighted area" means an area which by reason of the presence of a substantial number of slum, deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefulness, insanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use; but if the area consists of any disaster area referred to in Subsection C(5), 6 it shall constitute a "blighted area."
(9) "Redevelopment project" means undertakings and activities in a redevelopment area for the elimination and for the prevention of the development or spread of slums and blight, and may involve slum clearance and redevelopment in a redevelopment area, or rehabilitation or conservation in a redevelopment area or a program of code enforcement in a redevelopment area, and may include open land which, because of its location and/or situation, is necessary for sound community growth which is to be developed by replatting and planning for predominantly residential uses, or any combination or part thereof in accordance with a redevelopment plan. Such undertakings and activities may include:
(a) Purchase of a slum or blighted area or portion thereof.
(b) Demolition and removal of buildings and improvements.
(c) Installation, construction, or reconstruction of streets, utilities, parks, playgrounds and other improvements necessary for carrying out in the redevelopment area the redevelopment objectives of this section in accordance with the redevelopment plan.
(d) Disposition of any property acquired in the redevelopment area including sale, initial leasing or retention by the parish of municipality itself at its fair market value for uses in accordance with the redevelopment plan.
(e) Carrying out plans for a program of code enforcement and a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements in accordance with the redevelopment plan.
(f) Purchase of real property in the redevelopment area which, under the redevelopment plan, is to be repaired or rehabilitated for dwelling use or related facilities, repair or rehabilitation of the structures for guidance purposes, and resale of the property.
(g) Purchase of any other real property in the redevelopment area where necessary to eliminate unhealthful, insanitary or unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public welfare, or otherwise to remove or prevent the spread of blight or deterioration, or to provide land for needed public facilities.
(h) Purchase, without regard to any requirement that the area be a slum or blighted area, of air rights in an area consisting principally of land in highways, railways or subway tracks, bridge or tunnel entrances, or other similar facilities which have a blighting influence on the surrounding area and over which air rights sites are to be developed for the elimination of such blighting influences and for the provision of housing and related facilities and uses designed specifically for and limited to families and individuals of low or moderate income.
(i) Construction of foundations and platforms necessary for the provision of air rights sites and housing and related facilities and uses designed specifically for and limited to families and individuals of low or moderate income.
(10) "Redevelopment area" means a slum area or a blighted area or a combination thereof which the local governing body designates as appropriate for a redevelopment project.
(11) "Redevelopment plan" means a plan, as it exists from time to time for a redevelopment project, which plan shall conform to the general plan for the municipality or parish as a whole except as provided in Subsection C(a) and (b) 7 shall be sufficiently complete to indicate such land acquisition, demolition and removal of structures, redevelopment, improvements and rehabilitation as may be proposed to be carried out in the redevelopment area, zoning and planning changes, if any, land uses, maximum densities and building requirements.
(12) "Related activities" means (a) planning work for the preparation of a general neighborhood renewal plan, or for the preparation or completion of a community-wide plan or program and (b) the functions related to the acquisition and disposal of real property pursuant to Subsection B, Paragraph (4) 8 of this Section.
(13) "Real Property" means all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto, or used in connection therewith, and every estate, interest, right or use, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise.
(14) "Bonds" means any notes, interim certificates, certificates of indebtedness, debenture or other obligation.
(15) "Obligee" means any bondholder, agent, or trustee for any bondholder, or lessor devising property used in connection with redevelopment, or any assignee or assignees of such lessor's interest or any part thereof, and the federal government when it is a party to any contract with the municipality or parish.
(16) "Person" means any individual, firm, partnership, corporation, company, association, joint stock association, or body politic; and shall include any trustee, receiver, assignee, or other person acting in a similar representative capacity.
(17) "Area of operation" means the area within the established limits of the municipality or parish.
(18) "Board" or "commission" means a board, commission, department, division, office, body or other unit of the municipality or parish authorized to undertake redevelopment projects.
(19) "Public officer" means any officer who is in charge of any department or branch of the government of the municipality or parish relating to health, fire, building regulations, or to other activities concerning dwellings in the municipality or parish.
(20) "Local option" means the option and discretion of the local governing body.
(21) "Municipality" means incorporated towns or cities.
Q. Insofar as the provisions of the section are inconsistent with the provisions of any other law, the provisions of this section shall be controlling. The authority conferred by this section shall be in addition and supplemental to the powers conferred by any other law.
R. Low interest loans and redevelopment grants to low income owners of inadequate dwellings
(1) The various parish redevelopment authorities are hereby authorized to issue revenue bonds and make low interest loans and grants to low and moderate income owners of dwelling structures which may be declared as inadequate, unsafe, unsanitary or blighted by reason of the necessity for the elimination of conditions detrimental to human life. Authorities as used herein shall mean the various parish redevelopment authorities. The various parish redevelopment authorities shall have the power to promulgate appropriate rules to administer this Act, and they shall have the authority to refinance existing indebtedness and the cost of rehabilitating owner-occupied real properties and their improvements.
(2) Sources of funds. The sources of funds for low interest loans shall be from the sale of revenue bonds under the authority of the various redevelopment authorities at a percentage to be determined by the issuing authority, from commercial loans obtained at the lowest interest rate available to the redevelopment authority, or from such other sources as may be available. Such bonds shall not require the full faith and credit of the state.
General revenue sharing funds or any other funds available and/or provided by the state or various local government bodies shall furnish the source of funds for the low income rehabilitation grants established by this section.
Such bonds shall be of such series, bear such date or dates, mature at such time or times as the authority may determine at the time of issue, shall bear interest at such rate or rates as shall be fixed by the authority, but the total amount of interest to be paid on any series or issue, when added to any amount below par at which any of the bonds may have been sold will not exceed six percent simple interest from the date of sale until maturity, said interest to be payable at such time or times, be in such denominations, be in such form, either coupon or fully registered without coupons, carry such registration or exchangeability privileges, be payable in such medium of payment and at such place or places, be subject to such terms of redemption and be entitled to such priorities on the income, revenues and receipts of the authority as may be provided by the authority in the resolution providing for the issuance of the bonds. The bonds shall be signed by such officer or officers as the authority shall determine, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signatures of such officer or officers as the authority shall designate. Any such bonds may be issued and delivered, notwithstanding that one or more of the officers signing such bonds or the officer or officers whose facsimile signature or signatures may be on the coupons shall have ceased to be such officer or officers at the time such bonds shall actually have been delivered. Such bonds may be sold in such manner and from time to time as may be determined by the authority, and the authority may pay all expenses which it may deem necessary or advantageous in connection with the issuance and sale thereof. Advertisement of the proposed sale of bonds shall be made at least once a week for not less than thirty days in a financial newspaper or journal published in New Orleans, New York or Chicago. All bonds issued under the provisions of this Act shall have and are hereby declared to have all the qualities and incidents of negotiable instruments under the negotiable instruments laws of the state. Such bonds and the income thereof shall be exempt from all taxation within the State of Louisiana.
Bonds shall not be invalid for any irregularity or defect in the proceedings or the issuance and sale thereof, and shall be incontestable in the hands of a bona fide purchaser or holder thereof. The authority shall file with the state treasurer a certified copy of the resolution authorizing the issuance of any bonds under this section, and for a period of thirty days thereafter, any person in interest shall have the right to institute an appropriate action or proceeding to contest the validity of the bonds authorized, the revenues pledged for the payment of the principal and interest on such bonds, the validity of the revenue necessary to pay the principal and interest on the bonds, the expenditure of the proceeds derived from the sale of the bonds for the purposes specified by law, and the validity of all other provisions and proceedings in connection with the authorization and issuance of the bonds. If such action or proceedings shall not have been instituted within the said thirty-day period, then the validity of the bonds shall be conclusively presumed, and no court shall have authority to inquire into such matters. The authority may also provide for the replacement of any bonds which may become mutilated, destroyed or lost.
(3) Loan regulations.
(a) Eligibility based on income.
In making loans with respect to residential property under this section, priority shall be given to applications made by persons whose annual income is within the following ranges:
(i) One person, eight thousand and four hundred dollars.
(ii) Two persons, nine thousand six hundred dollars.
(iii) Three and four persons, eleven thousand dollars.
(iv) Five and six persons, twelve thousand three hundred fifty dollars.
(v) Seven or more persons, thirteen thousand seven hundred dollars.
(b) No such loans shall be made unless owners of dwellings shall present in writing that so long as any part of such loans shall remain unpaid, each dwelling unit in such multidwellings shall be available solely for occupancy by persons of low and moderate incomes. No person who lives in such multidwelling at time of loan shall be required to move because of the cost of rehabilitation or improvements financed thereby. All persons operating or managing such multidwellings shall permit duly authorized officers, employees, agents, or inspectors to enter and inspect such dwelling.
No such loan is to be made unless the owner executes an affidavit saying he was unable to obtain private financing for the rehabilitation or improvements of his property.
(4) This subsection is exempt from any provisions of the law concerning approval by the qualified electorate of any parish or municipality. Provided however that the provisions of this subsection shall apply only to parishes or municipalities with a population in excess of 180,000 and the parishes of Tangipahoa, Ascension, Assumption, Iberia, Lafayette, St. Landry and St. James.
1 In par. I(3), as it appears in Acts 1970, No. 590.
2 In par I(4) and item O(2)(b)(iii) and par. O(2)(g), as it appears in Acts 1970, No. 590; see, however, Subsection (F).
3 42 U.S.C.A. §§2501 to 2512. Omitted.
4 In subpar. O(2)(e), as it appears in Acts 1970, No. 590.
5 In subpar. O(2)(h), as it appears in Acts 1970, No. 590; see, however, Subsection (M)(4).
6 In subpar. P(8)(i), as it appears in Acts 1970, No. 590; see, however, Subsection (G).
7 In par. P(11), as it appears in Acts 1970, No. 590.
8 In par. P(12), as it appears in Acts 1970, No. 590; see, however, Subsections (H) and (I).

Legislative History

Added by Acts 1970, No. 590, §§1, 3. Amended by Acts 1973, No. 201, §1; Acts 1974, No. 660, §1; Acts 1979, No. 640, §1.