For information on the Katrina/Rita Piggyback Program, click here.
In August 2010, the state of Louisiana awarded $5.5 million for four projects in the competitive Piggyback "gap financing" program for affordable rental housing. This completes all of the funding for the program, which had previously awarded $28.5 million for eight projects.
The Piggyback is designed to create additional mixed-income rental housing and permanent supportive housing units, including housing set asides to confront homelessness, in parishes damaged by hurricanes Gustav and Ike or those recovering from hurricanes Katrina or Rita.
The Office of Community Development's Disaster Recovery Unit is no longer accepting applications and anticipates no additional funding rounds.
Low-interest loans were awarded to five developers who will "piggyback" the Community Development Block Grant money with other funding sources to create mixed-income housing for market-rate and low-to-moderate income tenants, and for the creation of permanent supportive housing units for disabled individuals and those at risk of or enduring homelessness.
The CDBG loans will be used for costs associated with construction or rehabilitation. The 12 projects will create a total of 878 rental units, 832 of which are affordable and 181 of which will be Permanent Supportive Housing.
The awards by parish are as follows:
- Calcasieu Parish
$800,000 for Fifth Avenue Apartments with developer Garrison Companies
- East Baton Rouge Parish
$4.35 million for Mallard Crossing with developer LDG Development
$2.25 million for Woodcrest Apartments with developer LDG Development
$2 million for Autumn Chase Apartments with developer Michael Peralta
$500,000 for GCHP One Stop with developer Gulf Coast Housing Partnership
- Evangeline Parish
$410,000 for Southern Place with developer Gemini Real Estate Holdings
- Lafayette Parish
$2.5 million for Village Parc with developer Gemini Real Estate Holdings
- Terrebonne Parish
$5.7 million for Barataria Station with developer HRI Properties
- Orleans Parish
$7.59 million for 2222 Tulane Apartments with developer HRI Properties*
$5.3 million for McCaleb Supportive Housing with developer Gulf Coast Housing Partnership*
$1.8 million for Gold Seal Lofts with developer Domain Companies
$800,000 for Tudor Square with developer Classic Construction of New Orleans.
*These two projects in New Orleans have reserved 51 units exclusively for homeless populations.
Permanent Supportive Housing units are linked to supportive services for vulnerable populations in non-institutional settings, reducing emergency room visits and other high-cost health and social service interventions for people with chronic disabilities.
The model is a national best practice with cost savings that outweigh the expense of the services. Supportive services will be provided by local lead agencies, with funding and oversight from the Louisiana Department of Health and Hospitals. The local lead agencies will receive applications from individuals seeking PSH units and will refer eligible tenants to the Piggyback projects.
The bulk of the funding is part of $1 billion in disaster recovery dollars awarded to Louisiana by the U.S. Department of Housing and Urban Development for damages inflicted by hurricanes Gustav and Ike. As part of this allocation, HUD is requiring the state to dedicate 11.2 percent of the total funding to affordable rental housing. A smaller portion of the funding comes from $9 million in disaster recovery money earmarked for eliminating homelessness in Louisiana in the wake of hurricanes Katrina and Rita.