Affordable Housing Not Adding Up In New Orleans

Despite vastly higher levels of federal affordable housing tax credits awarded to Louisiana, developers are pulling out of projects because they can't make sufficient profits.

1 minute read

April 12, 2007, 5:00 AM PDT

By Alex Pearlstein


"Developers awarded federal tax credits to build affordable housing in post-Katrina New Orleans are concluding that many of the projects aren't financially feasible and are unlikely to get built before the government's 2008 deadline."

"After Hurricane Katrina destroyed more than 82,000 low- and moderate-income rental units in 2005, the federal government substantially increased Louisiana's tax-credit allocation, giving the state $170 million in low-income housing tax credits specifically for hurricane-ravaged areas."

"Under the terms of the agreement, the developers must be ready to rent the units by the end of 2008 or lose crucial financial benefits that could help push their projects along. But according to the Louisiana Housing Finance Agency, about 65% of the projects that were awarded tax credits are in jeopardy because developers can't get them off the ground. Some private developers say the number of projects in jeopardy is much higher, perhaps as much as 80%."

"Although all of the $170 million in tax credits -- plus an additional $13 million -- for Louisiana have been awarded, only 5% of the proposed units have started construction."

[Editor's note: Although this article is only available to WSJ subscribers, it is available to Planetizen readers for free through the link below for a period of seven days.]

Wednesday, April 11, 2007 in The Wall Street Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

July 11 - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

July 11 - Cities Today