What is the Lot Next Door Program?

The Lot Next Door Program (LNDP) is a plan that the Louisiana Recovery Authority (LRA) is currently transferring properties acquired through Option 2 of the Road Home Program to the Louisiana Land Trust (LLT).  Once the Louisiana Land Trust has demolished the existing structures and removed slabs, the properties will be available for transfer under the Lot Next Door Program, thereby returning to private ownership.  The plan will allow eligible participants to purchase these acquired properties in St. Bernard Parish.

What is Community Development Block Grant funds (CDBG)?

CDBG funds are provided through the U.S. Department of Housing and Urban Development (HUD).  Funds are granted to develop viable communities by providing decent housing, a suitable living environment, supportive services, and opportunities to expand economic opportunities, principally for low- and moderate-income persons.  This Lot Next Door Program is funded through the use of CDBG funds.  All transfer of LLT property is handled under HUD and CDBG guidelines.

How is an eligible property in the Lot Next Door Program (LNDP) identified?

Louisiana Land Trust (LLT) will provide to the St. Bernard Parish Government a listing of properties that are to be included in the Lot Next Door program (LNDP) in St. Bernard Parish.  The St. Bernard Housing and Redevelopment Quality of Life Commission (SBHRQLC) shall provide the listing of properties for sale to Global Risk Solutions, Inc (GRS).  GRS shall administer the sale of these properties under the auspices of the St. Bernard Parish Government.  However, the redevelopment plan does not allow one prospective purchaser to acquire more than 2 Lot Next Door parcels (no more than one on each side).  An eligible property may be sold as whole lot or can be a ½ split between neighbors and re-subdivided.

For plan specifics please see Purchaser Hierarchy for details.

Who are eligible participants of the Lot Next Door Program (LNDP)?

An appraisal will be performed and properties will be sold at appraised Fair Market Value, less any applicable low-to-moderate income 30% discount.  Property owners who reside and claim their homestead exemption in St. Bernard Parish will have the opportunity to purchase all of an adjacent Louisiana Land Trust property or split the lot 50/50 with a neighbor who is adjacent to the same Louisiana Land Trust property. 

The Lot Next Door program in St. Bernard Parish will allow the adjacent neighbors first-refusal rights for the purchase of adjacent Louisiana Land Trust properties.  Rear adjoining properties will be handled separately, on a case by case basis.

Eligible purchaser priority is defined as:

    • 1st - Resident homestead exempt homeowners next to the LLT property
    • 2nd - Non-Domiciled Owners next to the LLT property

You are not eligible to purchase a LLT property if your real property in St. Bernard Parish is subject to any unsatisfied citation or violations of the parish and/or local codes, covenants and/or ordinances, or tax delinquency.  Satisfaction of any citation, violation, or tax delinquency must occur to be eligible for an LLT property transfer.  The Act of Sale will not be completed until all St. Bernard liens are paid.

For plan specifics please see Purchaser Hierarchy for details.

How does the LNDP determine if I have a homestead exemption?

We will be mailing an "Application Survey and Statement of Interest" form to all known owners of property adjacent to a LLT proeprty.  When you return the "Application Survey and Statement of Interest" form to us, a copy of your homestead exemption must be included. 

If you have a question about your homestead exemption status, contact the Parish's Tax Assessor’s Office at (504) 279-6379.

What is the purchase price for the LLT property?

Calculation of the purchase price is based on the appraised Fair Market Value of the property, minus any applicable low-to-moderate income 30% discount.

Please contact one of the Lot Next Door's Program Property Representatives, for further specific information.

Who is eligible for Low- to-Moderate-income 30% discount?

You are eligible for a 30% discount off the appraised Fair Market Value of a LLT property, if your income is below local area median income.  Those households earning 80% of local metropolitan area median income to receive the 30% discount on purchase price. 

Household income is defined as the sum of money income received in the calendar year by all household members 15 years old and over, including household members not related to the householder, people living alone, and other nonfamily household members. Included in the total are amounts reported separately for wage or salary income; net self-employment income; interest, dividends, or net rental or royalty income or income from estates and trusts; Social Security or Railroad Retirement income; Supplemental Security Income (SSI); public assistance or welfare payments; retirement, survivor, or disability pensions; and all other income.

The affordable housing lot price discount of 30% or more shall be   determined by household income level by the SBHRQLC with approval of the Louisiana Land Trust.  To be eligible for the 30% discount your combined household must be under certain limits, as detailed on the Application Survey and Statement of Interest Form. 

Below is an excerpt of the established limits to be entitled to the 30% discount:

What should I do if I owe property taxes or have a lien on my property, but I still want to participate in the Lot Next Door program?

To complete the transaction you must pay any past due property taxes and clear up any liens upon any properties you own in St. Bernard Parish. 
If you have any liens placed by the St. Bernard Parish Government on any property you own in St. Bernard Parish you will need to contact the Parish at (504) 278-7600 or the Sheriff's Office Tax Collection at (504) 271-2504. 
Check with each department to determine if liens are on your properties, and be sure to save copies of your receipts showing that you have paid all back taxes and liens.

Please review the parish ordinance, for further specific information.

Are there any restrictions to new construction after the property has been sold to me?

The initial goal of the LNDP is to reduce the amount of lots in the parish and not add new addresses / structures.  Each lot sold will have a permanent deed restriction placed on it.  The restrictions will prohibit the acquired lot to be sold separate from the parcel next door and will prevent the construction of a separate residence on the transferred lot in perpetuity.

What is the process?  How long will it take?

1. Initial Contact Letters mailed to owners of adjacent side lots, with attached Application Survey and Statement of Interest forms

2.  If you are not interested please mark and return the Initial Contact Letter.

3. Property owner(s) adjacent to Lot Next Door property submits completed “Statement of Interest” and “Application Survey” forms to the Lot Next Door program office, with the following documents:

    Proof of your property ownership:
    o Homeowners Insurance  documents
    o Title of property
    o Current Act of Sale
    o Homestead Exemption Certificate
    o Tax Assessor’s Records
                              (This is not an all inclusive list and additional proof of ownership may be required.)

    Eligible documentation for Low to Moderate Income 30% discount
    o Prior year W-2 form(s)
    o Current filed copy of Income Tax return form(s)
    o Last 4 pay stubs, for each household wage earner
                    (This is not an all inclusive list and additional proof of household income may be required.)

4. Collection of $250 non-refundable application fee, for appraisal of lot next door property; only after the potential purchaser indicates a firm interest in the property will it be appraised.

5. Verification and certification of eligibility for Low to Moderate Income 30% discount

6. Review purchase offer with property owner(s) adjacent to Lot Next Door property.  The purchase price is not a negotiable item and the purchaser will be notified of the purchase price, based on appraisal and any applicable Low to Moderate Income discount.               
        Note:  Two interested purchasers could result in a lot being split 50/50

7. Collection of non-refundable Earnest Money in the amount of $250 and a $150 non-refundable fee from prospective purchaser.

8. Purchase Agreement signed by potential purchaser and Louisiana Land Trust representative.  The $250 application fee and $250 Earnest Money will be deducted from the purchase price at time of the sale; these deposits will be non-refundable if the purchaser wishes to stop the sale.

9. The state will make the determination on when the Closing process can begin; only after all structure removal, slab removal, and environmental reviews are completed on the LLT property.

10. Request for property survey, if necessary.

11. SBPG approves re-subdividing of lot next door property with purchaser’s property, goes into effect upon sale of lot next door property.

12. Closing scheduled between American Government Services (title & closing company) and potential purchaser(s).

13. Sale is completed and purchaser(s) assumes ownership of lot next door property.