NEW ORLEANS (press release) — The Bureau of Governmental Research (BGR) has released an On the Ballot report analyzing a proposed charter amendment in the Nov. 5 New Orleans election.
The proposition would require an annual budget appropriation for the City’s Housing Trust Fund equal to at least 2% of the City’s General Fund budget. If voters approve the proposition, the first dedication – an estimated $17 million – would occur in the City’s 2026 budget. The trust fund would be used to preserve and expand affordable housing for low- to moderate-income New Orleans residents.
Currently, most of the City’s annual funding for affordable housing comes from federal grants, which total about $15 million, with little recurring local revenues. Because the proposed charter amendment prohibits the use of federal and state housing grants to meet the 2% dedication, the proposition would basically double the City’s current investment in housing.
If the proposal fails, the City Council would put into effect a less binding $20 million dedication to a different housing fund by ordinance. However, the City’s federal housing grants could count toward that amount. And the council could change or eliminate the dedication at any time by passing another ordinance. All of this could mean less new local investment than the proposed charter amendment, but greater budget flexibility for the City Council. The council would repeal this backup fund if the charter amendment passes.
Highlights of BGR‘s Analysis and Position. BGR‘s report discusses New Orleans’ housing affordability problems and stresses the need for new City investment. However, BGR finds the ballot proposition would create a restrictive funding dedication in the City charter that would make it more difficult for the City to resolve fiscal challenges in other areas of government. The City can provide new funding for housing through less constraining means.
BGR takes a position against the proposed charter amendment and recommends instead strengthening the backup fund in ordinance. With improved planning, administration and oversight, this backup fund can provide greater flexibility to balance effective new housing investments with funding for other pressing budget needs.
“The City can create an effective vehicle for increasing investment in affordable housing without resorting to a charter change,” BGR President and CEO Rebecca Mowbray said. “Strengthening the backup housing fund will allow the City to meet its housing goals while also preserving necessary budget flexibility.”
Inform Your Vote. BGR’s report provides a thorough, nonpartisan analysis to help New Orleans voters make an informed decision on the proposed charter amendment. Voters can click these links or the buttons below to download the full report, or read just the “InBrief” summary and position statement. To broaden voter access to this information, BGR will post translations of the InBrief into Spanish and Vietnamese.