Buyers snapped up all 170 tax-delinquent properties put up for sale at an auction this week, Mayor Mitch Landrieu’s office said Friday. The second auction of properties taken over by the city for unpaid taxes drew 14,600 bids and raised $4 million.
Overall, the city’s monthly “tax-adjudicated” property auctions have now resulted in nearly 250 sales and raised more than $8.3 million since launching last month.
Revenue from the sales will be used to pay the back taxes owed to the city, the Board of Liquidation, the Orleans Parish School Board and the Sewerage & Water Board. Any remaining money will go into the city’s general fund.
Unlike a typical tax sale, where a buyer does not actually gain title to a property and must initiate foreclosure proceedings against the owner, Wednesday’s auction gave winning bidders outright ownership and a free and clear title.
The properties put up for sale previously went unsold in a tax sale and had been in the city’s control for at least five years.
The 170 winning bids at this week’s auction were placed by 126 bidders, about 90 percent of them from Louisiana, the city said.
A 46,000-square-foot building at 13000 Chef Menteur Highway, once used as offices for the Navy, drew the highest bid of $237,000.
In addition to the money raised through the auction, the city hauled in another $525,627 from 15 delinquent tax bills that were paid off before the properties went up for sale.
The city has made a total of nearly 1,800 properties, more than 90 percent of them vacant lots, available for auction.
The auctions are held monthly. The next one will be Sept. 2. It is expected to include 165 properties.