SADOW: Bill Could Help Discourage Scofflaw Landlords

Insofar as the upcoming 2025 regular session of the Louisiana Legislature and dealing with scofflaw apartment complex owners (and somewhat stealing from the “Mad Max” franchise), two bills enter, one bill leaves.

The issue—most notably in Shreveport—involves apartment complex owners skipping out on water bills, with no real way to force payment. This leaves the city with the Hobson’s choice of tolerating it or cutting it off that then puts residents in a bind. Residents are supposed to have their water costs factored into rent, as apartment complexes typically pay a single bill that then covers individual units. Yet, even though most tenants pay rent, some landlords have stiffed the city for months.

The city struggles to collect because the legal structure of property ownership makes it difficult to hold anyone directly accountable. The worst offenders own older, low-income properties, bleeding them for revenue while avoiding upkeep and obligations. Some of these buildings have been declared derelict, while others, though habitable, only receive water a few hours a day—a temporary fix to avoid punishing tenants who pay in good faith.

The problem lies in ownership structures. Many of these complexes are held under limited partnerships or LLCs, shielding the individuals behind them from liability. The penalties for LLCs amount to a pittance, and the city’s rental registry, implemented a few years ago, offers no relief. While that program ensures units have functional plumbing, it doesn’t regulate whether the water actually flows—leaving a major loophole.

To address this, two bills are in play—one already filed, the other promised. Democratic state Rep. Steven Jackson’s HB 6 would make it a felony to withhold utility payments, provides for civil redress allowing seizure of property or assets, and even subject offending entities to racketeering charges.

However, HB 6 misses the mark. The LLC buffer still protects individual landlords, civil penalties won’t fix the issue—bad actors will simply extract every dollar and abandon the property—and existing fraud laws already provide tenants some recourse. This bill adds more legal layers without truly addressing the core issue.

Democratic state Sen. Sam Jenkins’ proposed bill, however, offers a stronger solution. He plans to introduce legislation allowing the city to slap a lien on delinquent properties, kicking in when the title transfers—typically during a sale.

This approach closes loopholes. Only landlords intent on buying, draining, and abandoning properties would still exploit the system, and even then, in fewer cases. Fly-by-night investors would think twice before entering the rental market, and responsible owners would have more incentive to stay current on water bills.

Only Jenkins’ proposal strengthens the fight against dishonest landlords. If the final bill reflects his plan, it deserves passage, while Jackson’s doesn’t contribute anything and may be shunted off to the side.

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