USA – LOUISIANA Law and Practice Contributed by: Jeffrey P. Good, Susan M. Tyler and B. Trevor Wilson, Jones Walker LLP
ment rights over time while giving local govern - ments assurance that necessary infrastructure and community benefits will be provided. Public-private partnerships are also utilised for major developments, particularly those involv - ing significant public infrastructure or economic development components. Examples include the New Orleans Convention Center District Development and various port-related industrial developments. Tax increment financing districts and payment in lieu of taxes (PILOT) agreements represent other collaborative mechanisms between developers and local governments, particularly for projects in areas targeted for economic revitalisation. 4.7 Enforcement of Restrictions on Development and Designated Use The municipal or parish governing body may enforce zoning ordinances by injunction. In addi - tion, neighbouring property owners may seek an injunction to enforce a zoning ordinance. In practice, the enforcement of zoning ordinances is handled during the permit process. As a general rule, an action to enforce a zon - ing restriction, building restriction or subdivision regulation must be brought within five years, although there are exceptions, such as for prop - erties in the French quarter. Enforcement typically begins with a notice of violation from the local code enforcement department, followed by administrative hear - ings and potential fines for non-compliance. For continuing violations, local authorities may issue stop-work orders, revoke permits, place liens on property or seek court orders to enforce compliance.
Neighbouring property owners and community organisations may have standing to bring pri - vate actions to enforce zoning restrictions if they can demonstrate particularised harm from the violation. Some jurisdictions have established specialised administrative hearing procedures to address code violations more efficiently than through traditional court proceedings. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Real estate assets may be owned by state-law corporations, partnerships, trusts or LLCs. An LLC is the most common type of entity used to hold real estate. For commercial properties, the single-member or multi-member LLC structure dominates the market due to its liability protection and tax advantages. Limited partnerships with corpo - rate or LLC general partners are also used, par - ticularly for projects involving multiple investors or institutional capital. S corporations are less common but may be utilised in certain circum - stances, particularly for operating businesses that own their real estate. Special purpose entities (SPEs) or bankruptcy- remote entities are frequently required by lend - ers for significant commercial properties to iso - late the asset from other liabilities and simplify the foreclosure process if necessary. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity From a US income tax perspective, LLCs gener - ally provide the most flexibility to mitigate federal and state income taxes.
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