The state is directing $10.4 million in federally-funded block grants to the City of New Orleans, sending money back to affordable housing projects that were in jeopardy because of COVID-19, it announced Tuesday.
The city spent millions to help low-income and out-of-work New Orleanians pay rent and to temporarily house the homeless in hotels in an effort to slow the spread of the coronavirus through some of the city’s most vulnerable populations.
The city paid for the emergency measures by redirecting money that was previously committed to the construction of nine multi-family affordable housing projects. The first of the projects — 76-unit apartment complex in Treme — broke ground in February.
City and state officials said in a press release that affordable housing will become even more important as the city deals with the long-term economic consequences of the outbreak. Thousands of residents formerly employed in the service and hospitality industry were put out of work when hotels, bars and restaurants were shut down.
Gov. John Bel Edwards praised New Orleans Mayor LaToya Cantrell for addressing what he called “disproportionate suffering caused by this pandemic on housing vulnerable populations.”
He added, “By directing more CDBG (Community Development Block Grant) funds toward these projects we are helping to ensure continuation of the City’s progress in addressing it’s long-term affordable housing challenges.”
“City and State collaboration is an essential part of meeting people where they are in times of Emergency,” Cantrell said in a statement. “I want thank Gov. John Bel Edwards for working with the City to make sure we can continue the long-term work of expanding affordable housing opportunities even while fighting the homelessness challenges presented by the COVID-19 outbreak.”
Read the Governor’s full press release here.
