The Lot Next Door (LND) is the first phase for the disposition of “Road Home Properties.” It only applies to properties that the New Orleans Redevelopment Authority owns. This represents so far 100 houses and lots all over New Orleans but will eventually amount to over 5000 properties. By ordinance of the city, the LND program gives adjacent property owners the first opportunity to purchase NORA properties at Fair Market Value (FMV).
In order to be eligible to the LND Program, you need to have current Homestead Exemption on the property adjacent to the lot you are interested in. This means that, if you have homestead exemption on another house in New Orleans, or if you used to have homestead exemption prior to Katrina but have not re-established it on your property, you are not eligible for a LND purchase. Also, the lot you want to purchase must be immediately to the right or to the left side of the property for which you have homestead exemption (See below for more information).
The process of LND acquisition will go as follows:
1. As of Friday, July 11th 2008, NORA has sent a letter to 2000 homeowners who qualify for the LND program.
2. Eligible homeowners have 30 days after they receive this letter to reply with a letter of interest addressed to NORA.
3. NORA will then conduct an appraisal of the lot to determine the Fair Market Value. The FMV will vary based on the condition of the lot, its size and its location.
4. Once the prospective buyers receives a notice of the FMV, he / she can secure the lot by depositing 20% of the purchase price within 60 days.
Please note that,
1. If the neighbors on each side of the NORA property are interested then the lot will be equally divided if it’s vacant, or will go to the highest bidder if there is a structure on it.
2. Once you have bought a LND, you cannot put it back on the market for 5 years.
3. If there is a structure on the lot, you have to demolish it, or renovate and maintain it.
4. If you renovate a structure on the lot, you can turn it into a rental, in accordance with the zoning regulations.
NORA was used as a source: http://www.noraworks.org/
Created By: Julie Hernandez
Further information about the Lot Next Door can be found at:
NORA’s webpage on LND: http://www.noraworks.org/other_programs.htm#5
ThinkNola Post on LND: http://thinknola.com/post/the-lot-next-door/
Mid-City Neighborhood Organization link on LND: