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LouisianaSB 1892025 Regular SessionSenateWALLET

BLIGHTED PROPERTY: Provides for creation of the State Land Banking Authority Act. (8/1/25)

Sponsored By: Sam Jenkins (Democratic)

Signed by Governor

Municipal, Parochial and Cultural AffairsCommerce, Consumer Protection and International Affairs

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 2 benefits, 1 costs, 7 mixed.

Local governments can create land banks

Beginning August 1, 2025, Louisiana municipalities and parishes can create nonprofit land banks by ordinance, alone or together. An elected mayor or parish executive must approve the ordinance where that office exists. Land banks become local government bodies when their articles are filed with the Secretary of State. They must have governing boards, report annually to their creating governments, and follow Louisiana's open-meeting law. They must also adopt ethics and conflict disclosure rules; board members must disclose interests before the board acts.

Land bank bonds gain legal safeguards

Beginning August 1, 2025, land bank bonds are eligible investments for public bodies, financial institutions, insurers, fiduciaries, and others. They can also serve as deposits for public purposes allowed for state bonds. Revenue pledges create immediate liens binding against other claimants, without notice or filing outside the land bank's records. Bond proceeds and covered revenue must be held and used under legal requirements, bond resolutions, and trust agreements. Land banks must promptly transfer project property to entitled parties and release authority-created liens after debt is paid or fully provided for, other trust conditions are met, and the trust lien is released.

Land bank users face project charges

Beginning August 1, 2025, land banks can charge rents, rates, and fees for projects and related services. Charges and other available money must cover project expenses, bond payments, and required reserves. State agencies do not supervise or regulate these charges under this law, and no specific amounts are set. Bondholders and trustees can sue to enforce required charges and other duties under state law or bond agreements.

Blighted property liens can be released

Beginning August 1, 2025, authorized lienholders can release or reduce tax liens on property held or controlled by land banks. A special local release requires liens above the lower of the latest assessed value or a recent appraisal, or a void tax-sale certificate. The appraisal must be no more than six months old when release is requested. A local office must certify a vacant lot or vacant, unsafe, or uninhabitable building; the land bank must find the transfer necessary to address blight or prevent tax abandonment. Releasing the local lien does not erase the transferor's unpaid tax debt.

Land banks can pursue unpaid taxes

Beginning August 1, 2025, land banks can accept property interests or tax liens after local collection efforts fail. Acceptance requires approval or a decision by the local governing body or tax collector. Land banks can collect, foreclose, accept a deed instead of foreclosure, or sell; transfers do not erase other liens or interests. Net sale proceeds and covered tax receipts generally go to the tax collector for proportional distribution to taxing units. Distributions are capped at delinquent taxes, penalties, and interest; land banks can retain specified receipts through a written local agreement or law.

Land banks gain court protections

Beginning August 1, 2025, land banks can sue to stop unlawful removal of property from real estate they hold. Cases challenging their property title or sales must include the land bank, which must be served before a hearing. Courts can appoint land banks as receivers to manage property in proceedings filed by local governments. Land banks may also have the same legal immunity as the governments that created them.

Land banks gain property redevelopment powers

Beginning August 1, 2025, land banks can acquire, repair, lease, sell, secure, or demolish property within their local jurisdiction. They can accept financial help, make contracts, hire staff, and address building, fire, and health code violations. They can also bring ownership or foreclosure cases covering multiple parcels and must defend claims against property they hold. Land banks must list properties by title status and suitability for use, and follow local zoning, land-use, and permit rules. They cannot take property through eminent domain or impose taxes or special assessments.

Local governments inherit land bank obligations

Beginning August 1, 2025, creating governments can change or end land banks by ordinance, subject to legal protections for contracts. A government ending its land bank receives its property and assumes its obligations. A government leaving a shared land bank assumes its obligations and can demand specified property wholly within its boundaries. The shared land bank can continue after withdrawal with a revised name and compliance with the law's withdrawal requirements.

Land banks can borrow for redevelopment

Beginning August 1, 2025, land banks can issue project bonds lasting up to 50 years. Each issue needs a resolution stating its project, public purpose, maximum principal, and terms, followed by a competitive or negotiated sale. Land banks can refinance existing bonds, including to reduce debt costs or address default, but replacement debt can be larger. They can also issue short-term notes awaiting bond sales, repaid from unpledged money, authority revenue, or expected bond proceeds. These debts do not require state or local governments to repay them, raise taxes, or set aside repayment money.

Land banks get limited tax exemptions

Beginning August 1, 2025, land bank property, activities, and related revenue are exempt from state and local taxes or assessments. Their bond principal, interest, transfers, and income also receive state and local tax exemptions. Property sold or leased to private entities is generally subject to property tax. A nonprofit keeps the property-tax exemption during the application period while its redevelopment agreement remains active and not in default. Court clerks cannot charge recording fees for qualifying property transfers from state or local governments to land banks.

Sponsors & Cosponsors

Sponsor

  • Sam Jenkins

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 148 • No: 0

House vote • 6/9/2025

Read third time by title, roll called on final passage, yeas 101, nays 0. Finally passed, ordered to the Senate.

Yes: 101 • No: 0

House vote • 6/4/2025

Reported with amendments

Yes: 10 • No: 0

Senate vote • 5/20/2025

Senate floor amendments read and adopted. Read by title and passed by a vote of 37 yeas and 0 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.

Yes: 37 • No: 0

Actions Timeline

  1. Signed by the Governor. Becomes Act No. 443.

    6/20/2025Senate

  2. Effective date 8/1/2025.

    6/20/2025Senate

  3. Enrolled. Signed by the President of the Senate.

    6/11/2025Senate

  4. Signed by the Speaker of the House.

    6/11/2025House

  5. Sent to the Governor by the Secretary of the Senate.

    6/11/2025Senate

  6. Read third time by title, roll called on final passage, yeas 101, nays 0. Finally passed, ordered to the Senate.

    6/9/2025House

  7. Received from the House with amendments.

    6/9/2025Senate

  8. Reported with Legislative Bureau amendments.

    6/8/2025House

  9. Rules suspended.

    6/8/2025House

  10. Read by title, amended, passed to 3rd reading.

    6/8/2025House

  11. Scheduled for floor debate on 06/09/2025.

    6/8/2025House

  12. Reported with amendments (10-0). Referred to the Legislative Bureau.

    6/4/2025House

  13. Read by title, under the rules, referred to the Committee on Municipal, Parochial and Cultural Affairs.

    5/22/2025House

  14. Received in the House from the Senate, read by title, lies over under the rules.

    5/21/2025House

  15. Senate floor amendments read and adopted. Read by title and passed by a vote of 37 yeas and 0 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.

    5/20/2025Senate

  16. Read by title. Committee amendments read and adopted. Ordered engrossed and passed to third reading and final passage.

    5/19/2025Senate

  17. Reported with amendments.

    5/14/2025Senate

  18. Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Commerce, Consumer Protection and International Affairs.

    4/14/2025Senate

  19. Prefiled and under the rules provisionally referred to the Committee on Commerce, Consumer Protection and International Affairs.

    4/4/2025Senate

Bill Text

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