Starting today, all new housing developments in New Orleans will be more affordable to more New Orleans residents.
The city’s Mandatory Inclusionary Zoning Housing Policy mandates that housing developers must provide affordable housing units in new construction or rehabilitated housing that contains more than 10 housing units in the CBD, French Quarter, Marigny-Bywater, Treme, Mid-City, and Lower Garden District.
Beginning July 1, new housing developments will be required to set aside either 5% or 10% of rental units for New Orleanians making 60% of the Area Median Income or approximately $42,060 for a family of four.
City leaders say this means based on 2021 HUD income limits, the maximum rent for a two-bedroom unit would be $946.50 per month.
This applies to all new multi-family rental developments, whether stand-alone or mixed-use buildings.
These units must remain affordable for 99 years. In exchange for providing affordable housing units, developments are entitled to development bonuses, parking reductions, and financial incentives in the form of a tax abatement.
For those who would rather pay a one-time fee, the city offers an option to do that as well.
"Due to the hard work of our City’s housing advocates and development partners, the City Planning Commission, the City Council, and my Administration, affordable housing for our residents will be required in some of our highest opportunity neighborhoods when we implement the City’s first ever Mandatory Inclusionary Zoning ordinance. Every resident deserves a safe place to live and thrive and this program will provide housing opportunities to those residents who are vital to our city’s economic vitality. This program is for residents who are often excluded from being able to live in the neighborhoods close to employment and services," said Mayor LaToya Cantrell.
Throughout the city, access to affordable housing is in a critical state. This comprehensive set of policies is aimed at attacking the zoning and economic aspects of the crisis with both incentives and mandates for new developments," said City Councilmember Jay Banks.
"Solving the affordable housing crisis requires multiple interventions, implementing inclusionary housing requirements is a major step in bringing affordable housing to high opportunities areas that have become off limits to low to moderate income households," said Marjorianna Willman, Director, Office of Housing Policy and Community Development.
