[StBernard] New Mixed-Income Housing Development Breaks Ground in New Orleans East

[Westley Annis]

New Mixed-Income Housing Development Breaks Ground in New Orleans East



LRA, OCD Provide $19.5 Million in CDBG Funds to Get Project Underway

NEW ORLEANS, LA (August 1, 2007) - The Louisiana Recovery Authority (LRA), the Louisiana Housing Finance Authority (LHFA) and the Office of Community Development (OCD) joined representatives from the NHP Foundation and corporate executives from Capital One and Bank of America for a groundbreaking ceremony to announce construction of Walnut Square, a new mixed-income housing development in eastern New Orleans. The project, funded through $19.5 million in Community Development Blocks Grant (CDBG) funds, is part of the state's Low Income Housing Tax Credit Piggyback Program, which leverages tax credits to spur the development of mixed-income rental properties that provide high quality market rate housing, workforce housing and housing for extremely low income households. 

"As one of the largest new developments in New Orleans East, this project is a great example of how we're using the Piggyback Program to leverage CDBG funds and tax credits to bring significant private capital to Louisiana to create affordable, mixed-income communities," said Andy Kopplin, LRA Executive Director. "With more than 30 developments such as this underway across the hurricane impacted areas, the program is clearly working as intended to spur investments in high quality housing in the areas of our state that need it most." 

As a result of extensive damage suffered during Hurricane Katrina, the original Walnut Square apartment complex was demolished in 2006. The complex, which will be located on the same site, represents one of the largest new developments in New Orleans East with 209 housing units. 

Walnut Square will be a mixed-income community with both market rate and affordable units, the monthly rents of which is determined by residents' household income compared to the Area Media Income. In keeping with neighborhood goals, the project will also feature commercial space that will be made available to retailers, and provide a playground, laundry facilities, and a community center for its residents. It is being constructed in accordance with Louisiana's new building code and updated flood elevation guidelines that were recommended by the Federal Emergency Management Agency (FEMA) and adopted locally.

The Louisiana Recovery Authority designed the $569 million Piggyback Program and secured legislative approval of it. The Low Income Housing Tax Credit awards for this program are made available through the Louisiana Housing Finance Authority. The Division of Administration's Office of Community Development administers the CDBG funds for this program. 

Additional information about the Walnut Square project is available online at http://www.nhpfoundation.org/ <http://www.nhpfoundation.org/> . 

Hurricanes Katrina and Rita devastated South Louisiana, claiming 1,464 lives, destroying more than 200,000 homes and 18,000 businesses. 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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