Answer

As a political subdivision of the state, the District is subject to R.S. 33:4712.10 with regard to the purchase of property. This statute mandates that if the value of the property is greater than $3,000, the District must obtain an appraisal of the property by a qualified appraiser. In addition, the appraisal must be of the unimproved property and cannot contain any consideration of what improvements will be made to the property. The AG has opined that the purchase of immovable property for a price that exceeds the appraised value would be tantamount to a donation of public funds and, therefore, a violation of Article VII, §14 of the Louisiana Constitution (AG Op No. 08-0001). In this case, according to the facts presented, the cost of the property is below the appraised value. The District should also make sure that neither the seller nor the real estate agent are related to anyone on the District’s Board in order to avoid any Ethics issues. Louisiana Legislative Auditor website: 07/16/2025 01:54:06 AM