NEW ORLEANS (Oct. 12, 2024) — The Bureau of Governmental Research (BGR) expressed concern this week regarding a proposed charter amendment in New Orleans that would mandate a minimum annual budget allocation of 2% of the City’s General Fund for the Housing Trust Fund.
While acknowledging the pressing need for increased local investment in affordable housing, BGR argues that this rigid funding requirement could limit the City’s financial flexibility, hindering its ability to address other fiscal challenges. The report emphasizes that current funding primarily comes from federal grants, and the proposed amendment could effectively double the City’s investment but at the cost of imposing constraints that could affect broader budget management.
Instead of supporting the charter amendment, BGR advocates for enhancing a backup housing fund through ordinance, which would allow for more adaptable funding mechanisms while still meeting housing goals. BGR’s president, Rebecca Mowbray, underscores the importance of maintaining budget flexibility to balance effective housing investments with other critical needs. The report aims to inform voters about the implications of the amendment, providing a thorough analysis to facilitate a well-informed decision on the matter.
Alternatively, Councilmember Lesli Harris strongly supports the proposed Housing Trust Fund charter amendment, framing it as a necessary measure to secure long-term funding for affordable housing in the city. She emphasizes that the amendment would ensure a consistent annual budget allocation of 2% to address the city’s housing crisis, contrasting this with the Bureau of Governmental Research’s (BGR) stance, which she believes promotes a less reliable, temporary solution. Harris argues that while BGR acknowledges the need for a Housing Trust Fund, their preference for a less binding ordinance could lead to a reduction or elimination of local investment in housing, leaving residents without essential support for improvements and affordable living options.
Read more about Harris’s stance.
Here are some other top biz stories you might have missed this week:
Louisiana Avenue Firehouse to Become Affordable Housing & Education Center
Lawmakers, Public Face Steep Learning Curve for Gov. Landry’s Tax Overhaul: Analysis
New Orleans BioInnovation Center Announces Six Finalists for BioChallenge Pitch Competition
Southland Steel Invests $25M in Advanced Tech and Expansion at St. Helena Facility
UNO Releases Report on Quality of Life in Orleans & Jefferson Parishes
