Did a Louisiana city need a possession lawsuit before donating tax-adjudicated land to a nonprofit?

Plain-English summary

Alexandria's mayor asked whether a municipality had to sue for possession of tax-adjudicated property before transferring it to a nonprofit. In 2005, the Attorney General concluded no possession suit was required solely for a qualifying donation. The cited possession statutes concerned leasing adjudicated property, while the donation provisions in Chapter 13-B of Title 33 and La. R.S. 33:4717.3 contained no such suit requirement.

That answer did not remove the limits on donation. The opinion read the constitutional exception as limited to abandoned or blighted property, a qualifying nonprofit that agreed to renovate and maintain it, and municipalities above the population threshold stated there. It also said La. R.S. 33:4720.29 barred a post-adjudication donation until the owner's redemption period had expired. The opinion did not decide whether Alexandria itself met each eligibility condition.

Currency note

This opinion was issued in 2005. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Did the city have to sue for possession before a nonprofit donation?

The AG found no suit requirement in the cited donation statutes. It distinguished La. R.S. 33:2862 and La. R.S. 33:2863, which it read with the leasing provision, from the procedures for donations.

Could a nonprofit receive the property immediately after adjudication?

No. The AG quoted La. R.S. 33:4720.29: a post-adjudication donation could not occur until the redemptive period had elapsed. The opinion said donation did not extinguish the debtor's three-year redemption right.

Did the opinion authorize any municipality to donate any tax-adjudicated parcel?

No. It identified a narrow constitutional authority for abandoned or blighted property and a qualifying nonprofit that would renovate and maintain it. The opinion also stated a municipal population threshold, but did not apply that threshold to Alexandria's facts.

Background and statutory framework

The AG separated statutory procedures for possession and leasing from those for donating adjudicated property. La. R.S. 33:4720.30(A) addressed post-adjudication donations without mentioning a possession suit; La. R.S. 33:4717.3 likewise lacked a suit requirement. La. R.S. 33:4720.29 preserved the redemption period before donation. The opinion's answer was about the necessity of a possession suit, not a finding that the particular proposed transfer satisfied every condition.

Citations

• La. R.S. 33:2862 and La. R.S. 33:2863 (possession statutes discussed with leasing).
• La. R.S. 33:4717.3 (nonprofit donation provision).
• La. R.S. 33:4720.29 (donation after redemption period).
• La. R.S. 33:4720.30(A) (post-adjudication donation provision).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/05-0118

Original opinion text

April 26, 2005
OPINION NO. 05-0118

90-B-1 PUBLIC LANDS
159 TAXATION
La. Const. Art. 7, Sec. 14(B)(6)
La. Const. Art. 7, Sec. 25(B)
Honorable Edward G. Randolph, Jr.
La. R.S. 33:2862-2864
La. R.S. 33:4717.3
Mayor, City of Alexandria
La. R.S. 33:4720.25, et seq.
Office of the Mayor
La. R.S. 33:4720.29
La. R.S. 33:4720.30 (A)
Post Office Box 71
La. R.S. 47:2221
Alexandria, LA 71309-0071
Following adjudication of property for the nonpayment of taxes, a municipality need not file suit to obtain possession of property prior to donating the property to a nonprofit organization.
Dear Mr. Randolph:

On behalf of the City of Alexandria, you have requested the opinion of our office with regard to the procedural requirements for municipalities when disposing of property to an Internal Revenue Service 501(c)(3) or (4) nonprofit organization. Specifically, you asked if a municipality must still file suit to obtain possession of the adjudicated property pursuant to La. R.S. 33:2862 and 2863 when disposing of property to a nonprofit organization.

The only constitutional authority for donating adjudicated property derives from La. Const. Art. VII, Sec. 14(B)(6), and is limited to the donation of abandoned and blighted property. This provision limits the authority to make such donations to municipalities with a population greater than four hundred fifty thousand people and only then to a nonprofit organization “which agrees to renovate and maintain such property until conveyance of the property by such organization.” Id.

Louisiana Revised Statutes 33:4720.25 et seq., which contain the statutory methods for realizing La. Const. Art. VII, Sec.14(B)(6), cover the donation of adjudicated property from a municipality to a nonprofit organization. These provisions are separate and apart from those concerning obtaining possession, La. R.S. 33:2862 and 2863, that you mention in your request. La. R.S. 33:2862 and 2863 should only be read in connection with La. R.S. 33:2864, which deals with the leasing of adjudicated property and is thus not relevant to your inquiry.

Donations of adjudicated property by municipalities to nonprofit organizations are covered by Chapter 13-B of Title 33 of the Louisiana Revised Statutes. There is no requirement in this chapter, nor elsewhere in the Louisiana Revised Statutes, that suit must be filed to obtain possession when the intended donee of adjudicated property is a nonprofit organization under the Internal Revenue Code, 26 U.S.C. 501(c)(3) or (4).

Page 2

OPINION NO. 05-0118
Honorable Edward G. Randolph, Jr.
Mayor, City of Alexandria
Page No. 2

Thus, it is our opinion that the suit required under La. R.S. 2862 to obtain possession of adjudicated property need not be filed prior to donation to a nonprofit organization.

In further support of this position, we direct you to La. R.S. 33:4720.30(A), which refers to post-adjudication donation of adjudicated property. This statute specifically addresses the donation of adjudicated property and it includes no language referring to the need to sue to obtain possession when the intended donee is a nonprofit organization.

Another statute to which you refer in your inquiry, La. R.S. 33:4717.3, though not part of Chapter 13-B, does cover donations of blighted and abandoned property to nonprofit organizations. This statute is the implementing legislation for La. Const. Art. VII, Sec. 14(B)(6). La. R.S. 33:4717.3 is also devoid of any requirements for the filing of suit to obtain possession when the intended donee is a nonprofit organization. This silence further bolsters our opinion that no suit is required in order to obtain possession of adjudicated property prior to donating such property to a nonprofit organization.

In any scenario involving adjudicated property, it should be borne in mind that there is a three-year period during which the tax debtor can redeem their property by paying their taxes and other necessary costs. La. Const. Art. 7, Sec. 25(B); La. R.S. 47:2221. This redemption period cannot be eliminated by simply donating the property to a nonprofit organization. Indeed, La. R.S. 33:4720.29 explicitly states that “[t]he post-adjudication donation shall not occur until after the redemptive period has elapsed.” At the end of this redemption period, the municipality may cancel all of the liens and privileges on the property, thus allowing for a donation of property with a clear title to the nonprofit organization. Id.

We hope this sufficiently answers your inquiry, however if we may be of further assistance please do not hesitate to contact our office.

Sincerely yours,

CHARLES C. FOTI, JR.
ATTORNEY GENERAL

By: _____
RYAN M. SEIDEMANN
Assistant Attorney General

CCF, Jr./RMS/tp

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OPINION NO. 05-0118
Honorable Edward G. Randolph, Jr.
Mayor, City of Alexandria
Page No. 3
OPINION NO. 05-0118

90-B-1 PUBLIC LANDS
159 TAXATION

La. Const. Art. 7, Sec. 14(B)(6)
La. Const. Art. 7, Sec. 25(B)
La. R.S. 33:2862-2864
La. R.S. 33:4717.3
La. R.S. 33:4720.25, et seq.
La. R.S. 33:4720.29
La. R.S. 33:4720.30 (A)
La. R.S. 47:2221

Following adjudication of property for the nonpayment of taxes, a municipality need not file suit to obtain possession of property prior to donating the property to a nonprofit organization.

DATE REQUESTED: July 9, 2004

DATE RELEASED: April 26, 2005

REQUESTED BY: Honorable Edward G. Randolph, Jr.
Mayor, City of Alexandria
Office of the Mayor
Post Office Box 71
Alexandria, LA 71309-0071

AUTHOR: RYAN M. SEIDEMANN
Assistant Attorney General
Lands & Natural Resources Section