Affordable housing is getting harder to find in New Orleans, and city leaders want to put millions in taxpayer dollars toward solving the issue.
Residents will see a question on their ballot on Election Day asking them to vote “yes” or “no” on an amendment to the city’s charter that would establish a trust fund for affordable housing in New Orleans.
The amendment states: “Shall Article VI of the Home Rule Charter of the City of New Orleans be amended to establish a Housing Trust Fund dedicated exclusively to ensuring the availability of affordable housing within the City, and to require an annual appropriation of at least two percent of the City’s annual general fund to the Housing Trust Fund.”
New Orleans’ charter is its foundational governing document that lays out everything from the mayor’s powers to city spending requirements. Charter amendments require voter approval.
Supporters say it will dramatically help the city boost the supply of apartments and homes that are affordable to people who are middle class and low-income without increasing taxes. Critics argue a charter amendment is too rigid, and could tie the city’s hands if budget priorities change in the future.
What happens if it passes?
If voters approve the amendment, the city will be required to start budgeting 2% of its general fund every year for the Housing Trust Fund starting in 2026. Supporters say that would come out to roughly $17 million in local funds a year, which would be the largest investment of its kind in city history.
The funds will have set uses. They can go towards the creation of “affordable rental housing, preservation of affordable rental housing and the creation of affordable homeownership opportunities,” according to the measure.
Administration of the fund will fall on the New Orleans Redevelopment Authority and Finance New Orleans, two quasi-government housing development agencies. The city council will also create an advisory committee to help the agencies pick what to spend the money on.
City council will have the final say on what the money gets used for each year.
Who supports it?
The amendment is supported by all seven city council members and a large contingent of housing advocates.
They stress that the change is not a new tax. Lesli Harris, District B representative, helped bring the idea forward and is its main council spokesperson.
“We direly need additional rental units,” Harris said. “And we know that we're losing population because we lack affordable home ownership opportunities. And because of that, New Orleans’ economy is declining.”
The hope behind the charter amendment, Harris said, is that its permanency will help spur more interest from affordable housing developers, who struggle to break ground on projects due to high insurance premiums and labor shortages.
“This would really fill the gap for financing,” Harris said. “If there’s a permanent driver of building happening, that creates jobs. It’s a really circular path of economic growth.”
Developers agree, said Oji Alexander, CEO of People’s Housing+, an affordable housing developer with multiple housing projects in progress across the city.
“As long as we know that our piece is there and our piece is there annually, we can plan better. And it helps us get to the finish line,” he said.
The “yes” campaign has solid financial backing. NOLA FIRST PAC, a political action committee supporting it, reported receiving over $16,000 in contributions for advertising and promotions.
Who is against it?
At least one prominent nonprofit research group, the Bureau of Governmental Research, has come out against the measure.
Its main concern is the rigidity of a charter amendment, said Rebecca Mowbray, BGR’s CEO.
“That is very, very hard to change in the future,” she said. “There are potential problems about how give future city councils and mayors the flexibility they need to deal with whatever is in front of them.”
Many cities across the country fund affordable housing initiatives through ordinances, which don’t require voter approval and can be modified year-over-year, Mowbray said.
“It's unusual to put such a level of detail in a framework document like a city charter,” she said. “We view that as a risk even as we agree on the need to do something about housing because it is a real problem in the city.”
What happens if it doesn’t pass?
If residents vote the amendment down, then the charter won’t change. But the city is still poised to make a major investment in affordable housing development.
Ahead of the election, the council passed a separate ordinance that would require an annual investment of $20 million into an “Affordable Workforce Housing Fund” should the charter amendment fail.
Supporters of the amendment, including the city council, say the so called “backup” fund would be less steady. That’s because the city could fulfill its obligation using federal grants or other sources.
“And the council could change or eliminate the dedication at any time by passing another ordinance,” said Mowbray. “All of this could mean less new local investment than the proposed charter amendment.”
What else is on the ballot in New Orleans?
Residents will weigh in on top-ticket races, including presidential and congressional races. At the local level, New Orleans will elect several new school board members and judges.
Another charter amendment on the ballot would establish the city’s first Worker Bill of Rights, designed to increase pay and protections for people with jobs in the Big Easy.
