Members of the River District consortium and other New Orleans developers are the main financial backers of a November ballot initiative that would direct millions of city tax dollars annually to affordable housing projects.
New Orleans developer Louis Lauricella, construction firms led by Brian Gibbs and Robert Boh, and developer Tara Hernandez — all of whom are part of the River District Neighborhood Investors consortium — made the initial donations to the Nola First Political Action Committee, according to financial filings.
The PAC, which has received some $40,000 in donations and is run by political consultant Ayame Dinkler, created the Yes to Nola Housing website and is behind other efforts to support the creation of the NOLA Housing Trust Fund, according to financial filings and interviews.
Developers have long complained about the difficulty of securing enough funding to build affordable housing in New Orleans, and the ballot initiative, led by City Council member Lesli Harris, would undoubtedly help in creating a stream of public dollars to those projects.
It seeks to amend the city charter to create the housing fund, which would then be used to subsidize the building of new residential units, as well as other programs like fortified roofing and providing security deposits for financially challenged renters.
Public officials and others break ground for the $1 billion mixed-use River District development in New Orleans on Wednesday, Nov. 29, 2023.
If approved by New Orleans voters on Nov. 5, the fund would get a 2% share of the city’s general tax pool each year — around $15.4 million in 2024.
Affordable housing advocates have voiced support for the trust fund, arguing that the city desperately needs to spend more to create new housing for low-income residents priced out of market-rate apartments.
The Bureau of Governmental Research, the non-partisan good government group, has said it is opposed to the trust fund on the grounds that it would limit City Hall’s flexibility in how it spends money.
A growing list of donors
Dinkler, a political consultant who has worked in the past for the River District, said she is a long-time friend and supporter of Harris.
“I’m really just doing this as a community initiative on an issue that is important to a friend of mine,” Dinkler said. “The folks who are supporting this PAC support the premise that affordable housing is a priority for this city.”
Documents she provided indicated that the donor list has grown in the last few weeks to include additional River District members as well as other New Orleans area developers.
A list of donors through October 10 shows 23 contributors of between $100 and $5,000 and includes developers Paul Flower, The Domain Companies and Chris Genard, as well as hotel and short-term rental operators Frank and Dan Glaser.
Other members of the River District consortium who have contributed include Todd James, Shawn Barney, Nicole Webre and Michael Merideth. Alison Hartment, the River District operations manager, contributed, as did Chris Beary, who is leading an initiative to locate the Louisiana Music and Heritage Experience in the River District.
Zach Smith, a consultant for the River District, is also a contributor.
Most of the contributors to the fund did not respond to requests for comment. Lauricella said in a text message that he contributed to the PAC because affordable housing was a priority of his.
“I’m backing the housing trust fund because we are developing in the River District all types of housing including affordable and workforce,” said Lauricella. “We support initiatives to help advance affordable housing throughout New Orleans.”
Harris vows oversight
Harris, who was elected in 2021 to represent the Central Business District, Central City and parts of Uptown as the Council member for District B, has made affordable housing one of her top issues.
She has also been a strong backer of the River District project, which is in her council district.
The River District consortium has promised to deliver hundreds of subsidized housing units as part of a $1 billion plan to build entertainment venues, office blocks, hotels and retail space over the next decade on public and privately owned land that covers more than 50 acres upriver from the Ernest N. Morial Convention Center.
The consortium was chosen by the state-owned Convention Center’s board to be “master developer” for the project three years ago, in part for its promise to build 1,100 residential units and make half available for renters who meet the criteria for subsidized rents. That has since been scaled back to no more than 900 units and it has so far committed to building the first phase of 220 units.
The River District’s backers say the complex project requires big public subsidies, which include below-market rents, a share of the sales taxes generated in the district and direct federal, state and local funding to build the housing units.
In July, the River District was awarded a $15.5 million grant by the Louisiana Housing Corporation that will help finance The Batture Apartments, a 220-unit apartment block in the River District, with half the units designated for affordable or workforce renters.
The $95 million project will require more public funds before it can get started, however.
Harris, who chairs the River District economic development district boards, which oversee decisions that include determining how sales tax funds will be directed, backed the consortium earlier this year when some other City Council members accused the consortium of trying to cut the city out of oversight of the district. That dispute has since been resolved.
In an interview Monday, Harris said she remains focused on delivery of badly needed new affordable housing.
She noted that an ordinance passed earlier this year provides for oversight of the fund by an advisory board and other measures to ensure tax dollars are used for their intended purpose.
“I think anybody who has interest in affordable housing would support this initiative,” said Harris. “We’ve seen that not only through money, but through time and effort and energy spent on campaigning for the charter amendment.”
The housing trust also has the backing of nonprofit affordable housing developers such as Gulf Coast Housing Partnership, though CEO Kathy Laborde said that they are not making any political donations to support it.
Andreanecia Morris, executive director of HousingNOLA, an affordable housing advocacy group, echoed Harris, saying she thought there were checks and balances that would ensure that special interests didn’t have undue sway over the trust.
She noted, however, that she has withdrawn her initial support for the River District after it reduced its commitment to affordable units.
Rebecca Mowbray, BGR’s CEO, said voters should take into account the role of subsidies for developers when making up their mind on the housing trust.
“BGR found that rising costs of developing affordable housing are prompting developers to ask for larger subsidies from the City of New Orleans,” she said.
“Whatever decision voters make on November 5, developer subsidy requests should be considered as part of a broader, cohesive strategy for new housing investment,” she added, “with adequate review by administrators and accountability to City Council.”