Why is New Orleans trying to mandate new slum housing?

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New Orleans City Council members agree that renting or buying a home in the city has become too expensive for low- and moderate-income residents, and that there isn’t enough affordable housing stock to meet the demand.

But when it comes to whether the city should require affordable housing when new development is proposed, the council has yet to find common ground. But they moved closer to a decision on the policy, known as inclusionary zoning, in a procedural vote Thursday (Jan. 24) that keeps alive three key recommendations the City Planning Commission gave Mayor LaToya Cantrell and the council to mull over.

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Possible perks for developers to add such units are expected to include a range of tax breaks, creative financing options and allowing projects with greater density than zoning allows.

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The council approved three Planning Commission recommendations for further study:

The creation of a “mandatory inclusionary zoning overlay district,” where the city identifies demand for affordable and workforce housing. In that zone, developers could apply to build a larger building than the zoning code allows if they commit to affordable housing units.

A “mandatory inclusionary base zoning district,” which doesn’t have the increased density “bonus” available to developers.

A planned development classification that would require affordable housing. Under this option, a developer could seek what would amount to a suspension of a restrictive zoning code in exchange for working with city planners to incorporate affordable and workforce housing.

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“The clock is ticking and we could very easily find ourselves in a situation where we can’t do what’s best for New Orleanians,” Council President Jason Williams said. “We cannot be the New Orleans we have been and we want to be if ... our musicians, our hospitality workers ... our New Orleans police officers ... can’t afford to buy housing in the city.”

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Some familiar players emerged in opposition to the policy, including the Home Builders Association of Greater New Orleans, which tried to get inclusionary zoning banned in the Legislature last year. Its governmental relations director, Evan Loukadakis, questioned whether the council could point to any cities in the nation that have succeeded with such policies.

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But Andreanecia Morris, executive director of HousingNOLA, said in an interview that she doesn’t think that has to be the case if the incentives are structured correctly.

If the city is clear about incentives and subsidies available, Morris said, “then you’re attracting different developers and empowering and emboldening the developers that are already here.”

“Density,” Morris added, “Is not a dirty word.”

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