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Bill to allow direct sales of low‑value adjudicated properties advances amid transparency questions
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Summary
House Bill 515 would let municipalities sell adjudicated properties under $50,000 via an 'over‑the‑counter' process after traditional sale attempts fail; supporters said it helps clear blight, while senators pressed for safeguards to ensure market exposure and local pricing rules.
Representative Marcel introduced House Bill 515 on April 27, proposing an "over the counter" sales process for adjudicated properties with an appraised value under $50,000 so municipalities can return low‑value blighted lots to commerce.
"This is just an opportunity to do that," Representative Marcel said, describing the measure as a municipal tool that preserves notice and redemption rights and maintains public auctions for higher‑value properties.
Senator Morris questioned whether the change could enable below‑market sales or favoritism: "I'm worried about somebody at the municipality making a deal with a friend to sell them property without putting it out for public bid," he said. Marcel and Debbie Hinton of the Police Jury Association replied that the bill applies only to properties that already failed the statutorily required adjudicated sale process and that committee amendments require the property to have been previously offered at public sale.
Senator Lambert and staff clarified that subsection (a) referenced in the draft is the regular adjudicated sale process and that HB 515 applies only after that process and any statutory redemption period have elapsed. Hinton said local governing bodies would have authority to adopt ordinances that set minimum prices and procedures.
Supporters argued the bill addresses backlogs of adjudicated properties — particularly in East Baton Rouge Parish — and gives local governments another option to abate blight. "This is a tool in the box for different municipalities that are having these issues," Marcel said.
After discussion and assurances about local controls and the committee amendment, the committee reported HB 515 favorable by voice vote.
