Good government group wants guidelines for New Orleans’ public housing money

By Joni Hess

Source: The Times-Picayune | Nola.com

December 19, 2024

A government watchdog group has issued guidance that it says City Hall and its partners must follow before dispersing millions of dollars in new, voter-approved funding for affordable housing programs.

The Bureau of Governmental Research initially opposed the Housing Trust Fund, which will dedicate 2% of the city’s budget to housing each year. But with voters’ approval of the program last month, the group sent a letter to city leaders Tuesday aimed at increasing transparency and oversight of the expected $17 million annual funding stream.

“Voters have spoken to the importance of the Housing Trust Fund,” said BGR CEO Rebecca Mowbray in a statement. “Having the best possible framework for the program is essential to achieve long-term benefits for the public.”

In their letter, the BGR said fund governing agencies Finance New Orleans and the New Orleans Redevelopment Authority should establish clear eligibility requirements for applicants, have independent evaluations of the fund’s impact on the city’s housing crisis and regularly provide detailed spending reports.

They also urged strong oversight by the fund’s seven-person advisory panel, who will be appointed by the City Council, the mayor and housing groups and ask that clear auditing requirements be established for FNO and NORA.

“The truth is that these ideas are not new,” said City Council member Lesli Harris, who championed the fund’s approval. “They are the exact policies I repeatedly explained to BGR staff as crucial to the HTF (Housing Trust Fund).”

Harris said the current plan includes public input, accountability measures and prioritizes the community’s needs, inviting the BGR to help move the initiative forward rather than “repackaging existing policy decisions as their own.”

The BGR’s letter comes years after voters rejected a previous housing fund in 2021 that would have renewed a property tax that set aside about $4 million annually for housing since 1991. The group criticized Mayor LaToya Cantrell’s administration then for lacking detailed spending reports and claimed the money was instead poached frequently for other priorities.

The BGR opposed the new fund, which will first be tapped in the city’s 2026 general budget, in favor of another, less restrictive plan that could generate $20 million each year for housing programs, including current federal grants.

That plan could be reverted anytime by future councils whereas, the new fund is locked into the city’s charter and will double the amount in federal grants currently dedicated to housing — about $15 million.

The new fund can only be undone in emergency situations and by a unanimous vote.

The BGR’s stance against both housing initiatives has drawn outcry among housing advocates who praised the Housing Trust Fund for its stability and for its potential to address a growing housing crisis for years to come.

In a statement addressing the BGR’s letter, HousingNOLA Executive Director Andreanecia Morris accused the group of failing to fully assess the Housing Trust Fund proposal which already included or had a plan for their recommendations.

“Instead, BGR allowed their biases around affordable housing to, once again, trigger negative, knee jerk opposition without a full review of the facts,” Morris said in the statement.

“On election day, the people very clearly spoke about what needed to change, how they’re prepared to hold their leaders responsible and how they expect their leaders to respond given the crisis,” she added.

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