Affordable Housing

IHG-1

Observation

There is considerable demand for affordable housing in Downtown Baton Rouge.

Discussion

The federal tax credit program provides the State of Louisiana with an annual allocation of tax credits for developers who set-aside at least 20% of the apartments in their projects for persons earning less than 50% of the area’s median income. The sale of such tax credits can provide a sizable portion of the equity required to cover the gap between project development cost and the mortgage. Last year the State’s allocation was about $4.5 million. This is expected to increase to $6.5 million in 1999. Developers need an incentive to seek tax credit sites in Downtown Baton Rouge. Setting aside a small portion of these tax credits exclusively for use in Downtown Baton Rouge would provide this incentive.

Recommendation

Get the Louisiana State Housing Finance Agency to set aside 2% of its tax credit program for Plan Baton Rouge every year for the next three years. This will be sufficient to allow developers of small infill projects (along 7th Street) to build market-rate apartments that can be absorbed by the market, while simultaneously putting affordable apartments up for rent.

Special Project

Negotiate a 3-year set-aside of 2% of the state’s federal tax credit allocation for Plan Baton Rouge with the Louisiana State Housing Finance Agency.

Responsibility

Various

Project Status

As noted in the Plan, Historic Spanish Town and Beauregard Town are valuable assets that cannot be underestimated. Many initiatives in the Plan are de-signed to protect the integrity of the two historic neigh-borhoods. But it is crucial to increase the number of residential units in downtown, both upscale and mixed income. The issue of affordable housing in or adjacent to downtown has been the subject of meetings with Congressman Richard Baker, Baton Rouge Area Foun-dation, Local Initiatives Support Corporation, Housing Authority of East Baton Rouge, Office of Community Development, and Mid City Redevelopment Alliance, CALEB Community Development Corporation and LSU School of Architecture. A Residential Task Force has met numerous times to hear presentations from New Orleans developers, non-profit banking entities, and local community development corporations. Richard Preis’ planned mixed-use development on the site of General Lafayette Inn will significantly increase resi-dential density downtown.

Implementation

Explanation of Terms

Product

A Variety of Housing

Responsibility

Various

Implementing Agent

Various

Feasibility Analysis

Various

Initial Financing

PBR

Project Financing

Various

Timing