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Greater New Orleans Housing Alliance comments on Sidney Torres’ affordable housing plan

The Alliance says the loans proposed won't be enough for homebuyers

Recently, a proposal that would scrap the planned 14 affordable units at Sidney Torres’ Lafitte Greenway mixed-use development in favor of creating a "rotating fund" that would help low-income residents buy homes elsewhere in Mid-City was floated in City Council. Well, Mid-City Messenger reports the Greater New Orleans Housing Alliance is not too impressed with this change of course.

The $640,000 in funds would be used for long-term loans for 14 first-time homebuyers under the plan. The Alliance argues that it isn’t enough; the average home price in New Orleans is $192,000 (although we know most houses here cost way more), but the average subsidy among the participating homebuyers would be $46,000:

"Homeownership prices have doubled since Katrina devastated New Orleans 11 years ago and prices continue to hover just beyond the reach of many New Orleanians ... The alteration proposed seeks to create first time homeowners instead of renters but only offers $46,000 in a hard second mortgage to assist buyers."

The group suggests developers go back to the plan of including affordable units, or offering $150,000 to the 14 homebuyers.