Today, the Bureau of Governmental Research (BGR) sent a letter to New Orleans Mayor LaToya Cantrell and members of the City Council highlighting several ways to strengthen the future use of Housing Trust Fund money.
In November, New Orleans voters amended the City charter to dedicate annual funding to the trust fund. This amount will equal at least 2% of the City of New Orleans General Fund budget – approximately $17 million – beginning with the 2026 budget. The trust fund will be used to preserve and expand affordable housing for low- to moderate-income residents. The City intends to delegate administration of the trust fund to two external housing agencies, Finance New Orleans (FNO) and the New Orleans Redevelopment Authority (NORA).
“Voters have made a permanent and greatly expanded budget dedication to housing. It is essential that the City use this money effectively to meet our community’s housing challenges. It should also evaluate program performance so that it can adjust trust fund investments as needed,” said Rebecca Mowbray, BGR President and CEO.
While the City has taken steps to provide an administrative structure for the Housing Trust Fund in its governing ordinance, BGR’s letter points out key issues that must be resolved before Housing Trust Fund dollars are deployed. The administration of the trust fund could be improved with:
- Clear eligibility criteria for fund applicants
- More detailed metrics in the trust fund’s annual and quarterly reports
- Regular, comprehensive and independent evaluations of trust fund programs
- Auditing requirements for FNO and NORA
- Support for strong cooperation between FNO, NORA, and other City housing agencies
- Greater input from the City Council’s advisory committee on trust fund implementation
BGR’s letter includes the following recommendations for improving each of these areas:
- The City’s cooperative endeavor agreement with FNO and NORA should require them to lay out clear eligibility criteria for Housing Trust Fund programs.
- The City should include an expanded list of required performance metrics in the annual and quarterly reports of trust fund investments in its cooperative agreement with FNO and NORA.
- Beyond the annual and quarterly reports, the City’s cooperative agreement with FNO and NORA should require independent evaluation of Housing Trust Fund investments and their impact on the city’s housing problems.
- In its cooperative agreement with FNO and NORA, the City should lay out clear accountability measures for these agencies, including auditing of trust fund dollars.
- The City Council should revise the Housing Trust Fund ordinance to more explicitly support coordination among FNO, NORA, City and other housing agencies.
- The City Council should revise the trust fund ordinance to clarify appropriate channels for administering agencies to consult with the advisory committee on program implementation.
“Improving these areas of the trust fund’s administration will help ensure the transparent and effective use of public dollars from the Housing Trust Fund towards tackling New Orleans’ housing affordability problems,” Mowbray said.
The letter also highlights other considerations for the mayor and the council. These include complementing the Housing Trust Fund investments with other housing initiatives to address the complex nature of New Orleans’ housing challenges. In addition, BGR reiterates recommendations for the City to adopt a long-term financial plan. Such a plan is essential to effectively manage its other budget needs in light of the new housing trust fund appropriations.
Click here to read the letter on BGR’s website.