[StBernard] St. Bernard Parish approves mixed-income development

[Westley Annis]

St. Bernard Parish approves mixed-income development

Published: Monday, February 07, 2011, 2:04 PM     Updated: Monday, February
07, 2011, 4:21 PM

 By Benjamin Alexander-Bloch, The Times-Picayune 

Amid accusations of racially discriminatory housing practices, St. Bernard
Parish on Monday handed over a building permit to allow four 72-unit,
mixed-income apartments to move forward.

The St. Bernard Parish Council has stymied construction of the 288
apartments in Chalmette for more than two years, another in a long line of
attempts since Hurricane Katrina to prevent multifamily rental housing in
the parish.

"We are certainly glad that the permit has been issued and we are hopeful
that this is the final step, but we remain skeptical because this has been a
five-year-long process," said James Perry, the executive director of the
Greater New Orleans Fair Housing Action Center. "The parish doesn't seem to
be taking these steps out of altruistic reasoning, but simply because they
are being compelled to do so... so we need to make sure that every 'i' is
dotted and every 't' is crossed."

A recent federal suit, filed by New Orleans fair housing center and the
apartments' developer, Provident Realty Advisors, was in fact the fifth
contempt of court motion filed against the parish in regards to the project.
U.S. District Judge Ginger Berrigan had ruled against St. Bernard on three
of those occasions, and Berrigan dropped the fourth motion because the
parish had changed its practices on its own accord.

On each ruling, Berrigan determined the parish actions were intentionally
discriminatory by preventing apartments that would benefit African-Americans
more than other community members.

A few weeks after the most recent court filing -- this time because the
parish did not renew building permits for the project -- the U.S. Department
of Housing and Urban Development filed a complaint accusing the parish of
widespread discrimination against African-Americans by not allowing enough
rental and affordable housing.

That complaint officially commenced a HUD investigation into the parish's
actions and jeopardizes about $91 million in federal funding already
committed to parish projects.

While the HUD action mentioned the Provident project, its interest is much
broader in scope. It focuses on the legality of the parish's zoning
ordinance, specifically on changes the Parish Council passed in December
2009 that eliminated multifamily housing as a permitted use in five zoning
areas where it previously was allowed.

Now multifamily housing is permitted in only one zoning area -- R-3 -- and
through types of Planned Unit Developments that require special approval.

Last Tuesday, parish councilmen said they were up against a wall. They
referred to the HUD filing the previous week and to the impending federal
suit.

They said in order not to jeopardize the $91 million they would have to let
the development go forward and work with HUD on its broader zoning concerns.

Councilman Ray Lauga, whose district will house three of the apartment
complexes and whose constituents are vocally against them, later made clear
that he would forgo the federal money in order to prevent the construction.
About half of that federal money is needed to complete the new parish
hospital, but Lauga said he would trade the hospital to assure the
apartments' nonexistence.

Yet on Thursday, St. Bernard attorneys submitted a letter to the judge
saying the parish would allow the project to move forward. And on Monday,
Provident  received the actual permit from parish attorneys, according to
Matt Harris, Provident's managing director of multifamily housing.



On Friday, Provident and parish attorneys had discussed the matter and the
parish told Provident that it could begin construction. So on Saturday and
then again on Monday, Provident trucks began clearing debris from the site
and bringing in dirt for pilings. 



"It looks like we got what we needed and we are clear to go and everything
should be fine," Harris said.



In order for Provident to receive the federal low-income housing tax credits
that account for half of its $60 million development, the apartments must be
completed by December.



About $32 million of the construction cost is coming from the tax credits
and about $19 million is HUD Community Development Block Grant money coming
through the state's Office of Community Development. Another $6 million
comes from a Chase loan and about $2 million from private investors.



While Berrigan said she's aware the parish reissued the building permits,
that does not automatically render the recent contempt of court motion moot.
She set an evidentiary hearing for March 11 to discuss the motion. 



The parish also could be forced to pay additional fees, on top of about $1.5
million in attorney and settlement fees it already paid out to Provident and
the New Orleans fair housing center for the previous contempt motions. That
does not include the parish's own attorney fees.



Parish officials and councilmen are in Washington D.C. this week for the
annual Krewe of Louisianans Mardi Gras celebration, but they now also will
discuss multifamily housing.



St. Bernard representatives plan to sit down with HUD officials throughout
the week, including a meeting with the head of HUD, Shaun Donovan, on
Thursday, to discuss HUD's broader zoning concerns in the parish.



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