Affordable housing in the upcoming Lafitte Greenway apartment development has been secure, and its all thanks to a tax break.
On Tuesday, December 13, The Industrial Development Board gave the Mid-City apartment developer a $6 million tax break over 12 years.
The development is a 382-unit complex. Out of those 382 units, under City Council’s new smart housing mix plan, the apartment complex will have 14 affordable housing units. Those units will be priced to accommodate individuals who make 30 percent of the neighborhood’s median income, which is about $12,600.
The construction for the complex is estimated to cost $65 million.
The developer scored the tax breaks under the Industrial Development Board’s Payment-In-Lieu-Of-Tax program, also known as PILOT. Under the PILOT program, in exchange for building affordable housing, the developers tax payments are reduced to $56,000 while building the complex, according to the Canal Street Beat.
Once the construction is completed, taxes rise to $160,000 a year. Additionally, the taxes will increase 2.5 percent each year until 2025. After that point, the tax will increase by a total of $75,000.
According to the Industrial Development Board, few projects have been received a PILOT award. Projects have to satisfy several requirements, and prove to be of benefit to the city, to obtain tax breaks.
Edwards Community, the developer of the project, said the new complex will generate $29 million in property taxes for the city.
The Mid-City apartment complex considered adding affordable housing last November once the project was approved by City Council.
IDB Approves $6 Million Tax Break For $66 Million Mid-City Development [Canal Street Beat]