Bill · Louisiana

HB 368 — Historic Preservation Enforcement Penalties

Support w/ amendments Safety, Permits & Local Regulation 2026 Regular Session

Position memo on House Bill 368, increasing penalties for unauthorized demolition in New Orleans historic districts and its impact on property rights, redevelopment, and preservation policy.

House Bill 368 – Historic Preservation Enforcement Penalties

Position: Neutral → Support with Amendments

Summary

House Bill 368 increases the maximum fine for demolishing a structure in New Orleans without a certificate of appropriateness from $25,000 to $50,000, or 15% of the assessed value, whichever is greater. The bill strengthens enforcement authority within historic preservation districts.

Real Estate Impact

This bill directly affects property owners, developers, and investors operating within historic districts. While stronger enforcement may protect neighborhood character and long-term property values, increased penalties also raise regulatory risk, particularly for redevelopment and infill projects.

Strengths

Protects Neighborhood Character: Reinforces compliance with historic preservation standards.
Supports Property Values: Preservation can stabilize and enhance long-term values in historic areas.
Deters Bad Actors: Higher penalties discourage unauthorized demolitions.

Key Concerns

Increased Regulatory Risk: Higher penalties may discourage investment or redevelopment in historic districts.
Disproportionate Impact: A 15% valuation-based penalty could be significant for certain properties and projects.
Lack of Process Safeguards: The bill does not address timelines, appeals, or administrative clarity in the approval process.
No Distinction of Intent: Does not differentiate between willful violations and administrative or procedural errors.

    Recommendation: Support the goal of preservation enforcement, provided amendments are adopted

    to ensure fairness, clarity, and predictability for property owners and investors.

Recommended Amendments

Clarify Intent Standards: Differentiate between willful violations and inadvertent or procedural errors.
Establish Appeal Process: Provide a clear and timely administrative appeal pathway before maximum penalties apply.
Cap or Scale Penalties: Consider a graduated penalty structure rather than a single high maximum threshold.
Define Approval Timelines: Require predictable timelines for certificate of appropriateness decisions.
Safe Harbor Provision: Protect property owners who act in good faith based on submitted applications.

Conclusion

House Bill 368 advances the important goal of preserving New Orleans’ historic character. However, to maintain a healthy real estate market and encourage responsible investment, enforcement measures must be balanced with transparency, fairness, and procedural clarity. With targeted amendments, this bill can support both preservation and sustainable development.