[StBernard] LRA, LHFA Announce Latest Round of Tax Incentives to Address Rental Shortage

[Westley Annis]

LRA, LHFA Announce Latest Round of Tax Incentives to Address Rental Shortage

$80 Million in Tax Credits to Contribute to Creation of 15,000 Rental Units in Hurricane-Affected Areas

BATON ROUGE, La. (November 14, 2006) - The Louisiana Recovery Authority (LRA) and the Louisiana Housing Finance Agency (LHFA), in conjunction with the Office of Community Development (OCD), announced a plan today to issue more than $80 million in tax incentives to rental property developers and $400 million of Community Development Block Grants (CDBG), to create 7,000 new rental units statewide. Collectively, the 2006, 2007 and 2008 rounds of tax credits are expected to create more than 15,000 apartments and rental houses in Louisiana. State officials expect this round of credits will result in nearly $1.2 billion in private investment, adding to the construction boom across hurricane-affected parishes and addressing a post-storm shortage of affordable rental properties. 

Known as the Low Income Housing Tax Credit Piggyback Program, a significant portion of the credits will be devoted to spurring mixed income projects that provide high quality market rate housing, workforce housing and housing for extremely low income households. 

"These incentives will rebuild rental housing safer, stronger and smarter than it existed before the storms," said LRA Vice Chairman Walter Isaacson. "The tax credits will promote the development of safe and comfortable places to live in diverse communities - an essential part of our overall recovery." 

The Piggyback Program seeks to:

*	Target federal developer incentives to the most impacted areas where rental housing was lost
*	Create workforce housing in mixed-income communities
*	Provide affordable housing for Louisianans with the lowest incomes
*	Avoid replicating the pre-storm excessive concentrations of poverty
*	Help special-needs populations achieve stable housing and successful lives

Of 23 mixed-income development proposals, 15 are proposed for Orleans Parish, three are expected in Jefferson Parish, three in Calcasieu Parish, one in St. Tammany Parish and one in Vermilion Parish. The plans chosen will create as many as 5,200 rental units using nearly $560 million in tax credit equity and $400 million in CDBG funds. In sum, the proposals would create more than $960 million in mixed-income development. 

Another feature of this competitive round was to target projects that are consistent with local recovery planning efforts. At least 18 proposals were awarded bonus points for being consistent with neighborhood planning efforts, helping to address the recovery needs of communities. 

"We are extremely pleased at the quality of proposals submitted for our consideration," said LHFA Chairman Wayne Woods. "The development community has demonstrated a definite commitment to the principles set forth by Governor Blanco to rebuild high quality rental housing across the hurricane-affected parishes."

In September, the state completed awards for $87 million worth of tax credits, creating 8,500 rental units. Of the 7,000 in this round, more than 5,000 will be in mixed-income neighborhoods. These federal housing tax credits were made available to Louisiana through the Gulf Opportunity Zone legislation, passed by Congress in December 2005. 

Applications for the program were due by October 20, 2006. The final allocation of tax credits will be announced on December 13, 2006. Projects selected must complete construction before December 31, 2008. 

The Road Home Workforce and Affordable Rental Housing Programs have four primary goals:

*	Ensure workforce has access to affordable rental housing
*	Provide housing to households who could not otherwise afford to return home
*	Develop high quality housing and mixed income neighborhoods
*	Ensure rental units will have supportive services for families with special needs

Hurricanes Katrina and Rita devastated South Louisiana, claiming 1,464 lives, destroying more than 200,000 homes and 18,000 businesses and inflicting about $25 billion in insured losses. The Louisiana Recovery Authority (LRA) is the planning and coordinating body that was created in the aftermath of these storms by Governor Kathleen Babineaux Blanco to lead one of the most extensive rebuilding efforts in the world. The LRA is a 33-member body which is coordinating across jurisdictions, supporting community recovery and resurgence, ensuring integrity and effectiveness, and planning for the recovery and rebuilding of Louisiana.

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