$7 Million Available for Development of Affordable Rentals

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The Mayor’s Office of Housing Policy and Community Development recently released a Notice of Funding Availability (NOFA) for the development of affordable rental housing in New Orleans.

The funding cones from U. S. Department of Housing and Urban Development (HUD) dollars, general obligation bonds and Neighborhood Housing Improvement Funds (NHIF).  The deadline to apply for the available $7 million is Nov. 4, 2021. 

“I’ve said repeatedly that affordable housing is a priority and has been for my administration since day one, and we are taking all the right steps to provide our people with access to the housing they deserve,” said Mayor LaToya Cantrell. “We’ve prioritized bringing more affordable units online through new construction projects, and others in the pipeline that were blighted since Katrina. We are intentional in matching resources from our state and federal partners to address housing availability in amenity rich neighborhoods while investing in neighborhoods that have been divested of such amenities necessary for healthy environments.” 

Since 2018, the City has issued annual NOFAs totaling $26 million for affordable housing development, resulting in 1,097 mixed-rate housing units that have either been completed, are currently under construction, or in predevelopment stages and scheduled to break ground within the next 90 days, according to information released by the Mayor’s office.

The current NOFA is expected to fund five to seven developments that will produce 400-600 units. The funding awarded by the City will likely be matched with other federal and state funding such as Low Income Housing Tax Credits (LIHTC). These dollars are considered gap funding and usually comprise 10-15 percent of the project’s total development costs.

The $7 million NOFA is allocated for affordable rental housing only. However, the City recently allocated an additional $7.6 million for renters interested in becoming homeowners. A homebuyer can qualify for up to $65,000 for down payment assistance and $5,000 for closing costs.

“Under the Cantrell Administration, no one is left out,” said Marjorianna Willman, Director of the Office of Housing Policy and Community Development. “There are opportunities for renters and homebuyers, as well as home and business owners. We are not leaving any funding on the table.”