The issue is a problem for local governments statewide.
Abandoned buildings contribute to blight, health issues, crime, and property devaluations. It's very costly for these government entities to demolish these buildings. Liens filed against properties, which in most cases are owned by out of state investors, are inferior to previously filed mortgages and judgements.
It’s a losing game for the City of Shreveport to demolish abandoned apartment complexes and file liens for demolition costs when the complex has been mortgaged by the owners to finance the purchase price. Even the proposed 2% increase in Shreveport water bills to fund demolition will not automatically result in reimbursement of the costs to Shreveport.
Shreveport Councilman Grayson Boucher has proposed a possible solution to address this challenge.
The Louisiana Legislature could enact a law(s) to have the municipal liens survive a foreclosure and for the lien to have first ranking post foreclosure. If enacted a foreclosing creditor will get ownership of the property free and clear of any liens filed by creditors, etc. EXCEPT for municipal liens. Then before any money could be borrowed against the property or it sold with a clear title, the lien(s) would need to be paid. These liens can be for property standards violations, unpaid water/sewage bills, and demolition costs.
Like with any lien the municipality has the option to cancel the lien for payment of a reduced amount. If a foreclosing creditor agrees to develop the property for a "good cause" such as a needed affordable housing complex or a much needed retail establishment such as a grocery store in a food desert, the municipality can use cancellation of the lien as a needed economic development tool.
These properties like the Jolie, the Pines, Centenary Commons, and other abandoned apartment complexes have very little if any economic value other than the land value without the blighted buildings. In most, if not all, cases demolition improves the value of the property if for no other reason than ad valorem taxes are reduced and the land is then a "clean slate" for economic development.
State Senators Sam Jenkins and Thomas Pressly along with State Representative Steven Jackson and Tammy Phelps have actively represented Shreveport interests in Baton Rouge. Perhaps Councilman Boucher, Mayor Arceneaux and others could meet with these elected officials to promote legislation to help collect municipal liens. This is not just a Shreveport problem as New Orleans, Baton Rouge and other Louisiana municipalities have the same challenges, and in some cases, even more so than Shreveport.