Parish Redevelopment and Disposition Plan
For Louisiana Land Trust Properties





PARISH NAME:
Orleans

DATE ADOPTED:


DATE SUBMITTED FOR
APPROVAL:






PARISH CONTACT INFORMATION

Name of Parish Official
Agency
Telephone Number
E-mail address
Dr. Ed Blakely



Street or P. O. Box
City
Parish
State
ZIP Code
1340 Poydras St, 10th Floor
New Orleans
Orleans
LA
70115


CONTACT OF PERSON RESPONSIBLE FOR PLAN IMPLEMENTATION
Name
Firm/Agency
Telephone Number
E-mail address
Joseph Williams
NORA
504 658 4400

Street or P. O. Box
City
Parish
State
ZIP Code
1340 Poydras St., 6th Floor
New Orleans
Orleans
LA
70115


SUBMIT AN ORIGINAL AND ONE COPY OF THE PLAN TO:
Louisiana Recovery Authority
C/O Fay Ayers
150 Third Street, Suite 200
Baton Rouge, LA 70801




1. PARISH REDEVELOPMENT AND DISPOSITION ENTITY

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Which entity will the parish designate to coordinate with the Louisiana Land Trust (LLT) for the
disposition or redevelopment of properties acquired through the Road Home program? Parishes can
designate a local agency and/or nonprofit for this purpose or request that the Louisiana Land Trust dispose
of properties in partnership with the parish and in accordance with the outline set forth in the Parish
Redevelopment and Disposition Plan. If the parish designates a local agency or nonprofit for this purpose,
this section of the plan must briefly describe the qualifications and capacity of the organization and
individuals responsible for implementing the Parish Redevelopment and Disposition Plan. In addition, the
legal authority for this entity and a list of the organization’s board members must be attached.


The New Orleans Redevelopment Authority (“NORA”) has been designated by the City of New
Orleans as the exclusive recipient of all Road Home properties. NORA is a public body corporate and
politic, created in 1968 pursuant to LA R.S. 33:4720.55, and the resolution of the Council of the City of New
Orleans, evidenced by a certificate signed by the Mayor and Council and registered with the Secretary of
State of Louisiana. NORA exists to help remediate blighted conditions and promote equitable community
development. NORA recently completed a Demonstration Village redevelopment initiative and has plans
for another similar program involving approximately 75 properties. NORA is led by Joseph Williams, its
Executive Director, and has a staff of approximately 17 people. Its Real Estate practice is led by Ommeed
Sathe and includes three project managers, two housing inspectors and additional support staff. Biographies
from its key members are available upon request.
NORA’s board includes the following 11 members all of whom have a wealth of experience in the public
and private sectors: Chairman Herschel Abbott, Jim Singleton, Paul West, Rob Couhig, James Gray, Karl
Connor, Barbara Major, Wayne Woods, Mel Lagarde, Scott Cowen, and Rev. James Brown. NORA has a
number of statutory powers, including the ability to implement community improvement plans and acquire
blighted properties, which will help it to implement the vision put forth in this document. NORA believes
these powers are crucial and complementary and intends to utilize them both to implement this document
and pursue all of its other traditional goals.



2. PROPOSED REDEVELOPMENT AND DISPOSITION PROCESSES/POLICIES

Please outline the parish’s redevelopment and disposition processes and policies. If there is not sufficient
space below, the response may be attached as a separate document. This section must address whether
properties will be bundled and auctioned, sold for targeted development, offered to adjacent owners, or
reintroduced to the marketplace through other strategies. These strategies must be carried out in
accordance with Community Development Block Grant (CDBG) guidelines (please see attached). If
properties are to be assembled and offered through a competitive process, this section must detail the
methods by which the parish will prioritize, evaluate, and select redevelopment proposals. If the LLT will
be directing disposition, the parish must recommend the preferred method for the LLT to follow. If the
parish plan includes disposition of properties to individuals, the parish must outline the methods to
prioritize requests, assess fair market value, and/or distribute lots for the development of affordable
housing.

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The detailed response to question 2 is inserted below this box because it could not fit within
this box

RESPONSE TO QUESTION 2

DISPOSITION APPROACHES

NORA has four primary disposition methods it will use to manage the LLT properties:

1. Lot Next Door program and transfers to individuals
2. Transfers to for-profits and non-profits for development as residential property
3. Utilization of properties as sites for community gardens, urban agriculture and pocket parks
4. Selected use of properties for other uses expounded in neighborhood plans, such as community health centers, small
grocers, and expansion of school and other facilities.

NORA is committed to following the principles outlined below in determining which set of approaches is most appropriate for a
given neighborhood. The most important of those principles is the involvement of neighborhoods in all of these decisions.

1. Lot Next Door and transfers to individuals

The Lot Next Door (“LND”) is a vital program that respects the sacrifices many people have made in returning to their
neighborhoods and the need to eliminate blighted properties from these neighborhoods. As currently constituted the program is
primarily intended as a way for adjacent landowners to expand their lots, add yards and driveways and alleviate neighboring
blight. Under the LND, notices are sent to adjacent homeowners with homestead exemptions allowing them the opportunity to
purchase the adjacent property for fair market value. If homeowners elect to participate they may not sell the property for five
years and must maintain it. NORA intends to work with neighborhoods to encourage participation in this program as well to
identify any properties that the community believes should be used for a different public purpose. NORA will also explore
utilizing land swaps and other instruments to give residents in neighborhoods the opportunity to come back and rebuild in
clustered areas.

Numerous families are also seeking opportunities to rebuild on safer locations within their neighborhoods. NORA will
support such desires and, in conjunction with neighborhoods, will look at mechanisms such as land swaps that allow for
improved clustering. At the same time, NORA recognizes that many of these comprehensive land banking strategies are no
longer possible citizens have already begun to rebuild on their existing sites and there are only limited financial incentives
available. NORA will work with neighborhoods to identify opportunities to optimize this situation and will provide additional
data to help neighborhoods make these decisions.

2. Sales and leases to for-profits and non-profits for development as residential property

Katrina destroyed countless housing units and there are needs for new housing in many neighborhoods. NORA
believes that the magnitude of redevelopment will require harnessing all sectors including both the for-profit and non-profit
communities. NORA also believes that different housing market dynamics will play a role in determining the appropriate
mixture of entities. NORA will work with neighborhoods to determine the appropriate mix of entities and NORA does not
believe that either sector should receive a blanket preference.

3. Community gardens, urban agriculture and pocket parks

The LLT properties are largely scattered urban infill sites that do not naturally lend themselves to transformation into
large greenspaces. However, many of these properties may hold promise as sites for community gardens, pocket parks and
urban agriculture. These uses can help revitalize a neighborhood, create training opportunities, lower the cost of healthy food
and provide a useful alternative to conventional maintenance programs. NORA intends to work with neighborhoods to identify
appropriate sites for these uses. NORA will also focus on finding reliable entities to actually maintain properties in these
conditions. Finally, NORA intends to utilize input from local experts and other cities’ experience with these programs.

4. Other uses
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All of the LLT properties were formerly residential structures and therefore the most common disposition of properties
will be for residential use. Nevertheless, there will likely be instances where neighborhood wishes and local zoning will permit a
property to be used for alternative purposes such as a community health center, a corner grocer or expansion of parking for a
school. NORA believes that these alternative uses are often vital to revitalizing neighborhoods and it will work with
neighborhoods to identify opportunities for these uses. In seeking these opportunities, it will also be guided by the plans created
by the neighborhood planning process and the Orleans Parish Recovery and Redevelopment Plan, which outlined many of these
possible alternative uses.


NORA’S KEY DISPOSITION PRINCIPLES

Set forth below are a number of principles that will guide NORA’s disposition of the LLT properties. These principles lay
out a guiding vision that will be refined in conjunction with neighborhoods, and as the LRA and LLT provide additional
information regarding the location of LLT properties and the applicable restrictions imposed by CDBG, HUD and state OCD
guidelines. NORA expects to work in tandem with these entities to achieve any necessary flexibility to carry out the principles
presented in this document and support the Orleans Parish Recovery and Redevelopment Plan.


A. Community Participation & Neighborhood involvement

NORA is committed to consulting with neighborhoods before any decisions are reached regarding the disposition of
LLT properties. NORA is particularly cognizant of the role that planning districts should play in this process. NORA will
solicit feedback from all the planning districts and believes that the plans created by these groups and subsequently incorporated
into the Orleans Parish Recovery and Redevelopment Plan approved by the City Council should provide a starting point in
defining dispositions strategies for the LLT properties. NORA will seek to integrate these plans with LRA and CDBG
requirements regarding these properties, market analysis regarding what is feasible at different prices, NORA’s own policies and
procedures, and any city and state ordinances including the Lot Next Door program. NORA will also, where appropriate, work
with neighborhood groups within these planning districts, particularly for those neighborhoods with significant numbers of LLT
properties.
NORA is in the midst of scheduling initial meetings with these neighborhood groups that will take place between mid-
January and mid-March. NORA will publish a list of scheduled meetings with neighborhoods on its website and will also reach
out to groups in the neighborhood who are listed in its contact database. NORA will also ask that neighborhood facilitators
bring to these meetings all stakeholders from a given community.
NORA also recognizes that communities need better data to become more deeply involved in the process. Under the
current Road Home program only properties that have completed closing may be displayed on a parcel level basis. NORA is
working to relax this restriction as it unduly delays providing important information to the community. Once NORA has
received permission, it will provide parcel level maps to help engage neighborhood organizations. NORA will strive to make
these maps available on a regular basis on its website.
NORA also recognizes that communities need time to deliberate on these issues and at times make difficult choices
regarding the different approaches to take in their neighborhoods. NORA is attempting to therefore reach out to these groups
long before it actually receives any property from the LLT.
Finally, NORA has prepared a redevelopment compact that will help ratify and formalize its commitment to work with
neighborhoods. A sample of this document will be made available on NORA’s website

B. Ensure and require maintenance of LLT properties

Please see the response to question 8

C. Support Affordability and Equity

Housing costs (including insurance, taxes and the actual constructions costs) have skyrocketed since the storms and
impaired affordability across the income spectrum. According to our analysis, it takes over 120% of AMI to afford a basic home
that costs $150,000. Rental costs have also dramatically increased since a significant portion of the prior rental housing stock
was destroyed in the storm. These costs are hurting families and reducing the viability of New Orleans.
To support affordability, NORA intends to sell land for reduced rates where permitted by CDBG and LRA regulations,
as well as channel subsidies and public investments towards these goals. NORA will also support affordability by using its large
inventory of holdings to promote innovative and more cost-effective forms of construction. NORA will also look towards lease-
purchase and the utilization of doubles to promote affordability. Further, NORA will seek to maintain long term affordability of
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affordable properties. NORA is investigating methods such as a community land trust, limited-equity co-ops and other shared
appreciation vehicles that ensure properties remain affordable.

Inexpensive and even free land, however, will not alone be enough and there must be significant additional subsidies to
create such opportunities. While there are significant federal subsidies, such as Low-Income Housing Tax Credits (“LIHTC”),
available for groups below 80% of Area Median Income (“AMI”), these subsidies are often insufficient to cover the increase in
construction and insurance costs and are generally only available for rental properties. There is an even more acute gap for
individuals making 80%-120% of AMI, as there are few significant subsidies for this population. This affordability gap is
devastating to New Orleans because these are the salaries earned by first responders, teachers, social workers and other crucial
community stakeholders. NORA is committed to seeking out and supporting efforts to create soft-seconds, and other subsidies,
to aid in the redevelopment of the LLT properties.
NORA also recognizes that neighborhoods must be involved in decisions regarding affordable housing. Each
neighborhood in the city has its own specific concerns and product types that will work for its residents. Each community also
needs to draw back its share of first responder, teachers and similarly situated professionals with moderate incomes. As with all
its decision, NORA will work with neighborhoods and key stakeholders to make specific decisions regarding affordability.
NORA intends to work with all communities to ensure equity with regard to development opportunities, working with
subcontractors and individual purchasers. We will strive to use local industries in the redevelopment of the City to ensure that
this process creates the maximum benefit. NORA will encourage participants in this process to contract with DBEs and to hire
and train local workers. NORA will also attempt to involve organizations that represent the disabled, veterans, the homeless
and other populations with special needs to ensure that the disposition of LLT properties supports broader equitable goals.
NORA is against racial, religious and other forms of discrimination.

Please see the response to question 5 for additional information

D. Targeted Intervention

Checkerboard development (i.e. where only a few homes on each block are addressed in the midst of surrounding
disinvestment) is bad for communities and extremely costly to the city. The City through the neighborhood planning process
and its Recovery Plan has created 17 target zones in which to concentrate the first round of city investments and property
dispositions. NORA has added to this list with a few additional targets such as Public Housing offsites, Ponchartrain Park,
Hoffman Triangle and Broadmoor. By first releasing the properties to one entity (NORA) and concentrating on specific
regions, the city can ensure that residential blocks are fully filled, retail options return and returning homeowners have a clear
signal from the government regarding the implementation of a sensible redevelopment plan. Because demand may be limited
and the market relatively precarious, it is crucial to employ a focused development approach. As we complete our targets,
NORA will develop additional future projects based on the principles laid out in the Orleans Parish Recovery and
Redevelopment Plan and further neighborhood input

E. Maximum Clustering of Available Properties

It is counterproductive to initiate LLT property development on a block when it remains filled with blight. Likewise, it
heightens developer interest when there are significant agglomerations of property. To the extent possible without unduly
slowing the overall rate of disposition, it is vital to cluster all available property pipelines within a given area. Besides the LLT
properties, the City of New Orleans has over 15,000 derelict, vacant, tax delinquent and blighted structures (see Exhibit 2
below). Our goal is to concentrate acquisition of these properties in areas possessing a significant number of LLT properties
and then distribute these properties in tandem with the LLT properties. This strategy will benefit neighborhoods and increase the
value of our LLT dispositions.

EXHIBIT 2:
Property Pipeline**
Source Current

Potential
Notes
Pipeline
Pipeline
Pre-Katrina Blighted
~ 2500


Properties
Post-Katrina Blighted
~ 1000
~ 7000
Program is currently only active in storm-
Prop.
damaged areas and is in the midst of being
revised
LLT Transfers
~4000
~7500
Program is estimated to have 3000 closing
by the end of the year, and up to 7,500
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Adjudicated
~1000
~6000
Properties often have long title delays and
Properties and Tax
can be acquired by other channels if
Sales
capital is available
Lien Foreclosure &
~25
~200
Best utilized in affluent areas, where lot
Sheriff Sale
prices are greater than encumbrances
Land Bank &
~60 TBD

Acquisition
Other Sources


Negotiating for FHA foreclosures
** All figures come from NORA databases and information provided by City of New Orleans and the LLT.

F. Prevent Speculation and ensure responsible development
Selling LLT properties too rapidly, such as via a single auction, is unproductive as many of the properties will tend to
end up in the hands of speculators and ineffective developers.1 Speculators tend not to maintain lots and structures, have
limited community interest and hinder efforts at collective intervention. When these types of owners fail to comply with local
housing standards it is extremely costly to pursue them individually and attempt to repossess their properties. It also places an
added burden on the city’s already overstretched code enforcement division. Worst of all, salvageable structures often
deteriorate in speculators’ hands and end up beyond the point of cost-effective rehabilitation.
NORA will impede, and hopefully eliminate, speculation by four significant steps:
1) NORA will create rigorous RFPs that attempt to screen qualified developers from speculators;
2) NORA will distribute property in a gradual and focused way as part of comprehensive development strategies. It will
therefore create positive incentives for immediate redevelopment rather than for land hoarding;
3) NORA will sell property subject to strict development and disposition agreements (“DDA”) that require rapid
redevelopment consistent with the Orleans Parish Recovery and Redevelopment Plan and community planning process.
By proceeding gradually, NORA will have sufficient resources to pursue any candidates that fail to comply with these
DDAs; and
4) NORA will not continue to sell properties to entities that fail to comply with DDAs.


G. Transparency
NORA is fully committed to transparency and has adopted strict policies and procedures to govern the distribution of
property. We anticipate distributing properties via a hybrid RFQ-highest bid model. By first soliciting qualifications we will
ensure that only qualified entities participate in rebuilding initiatives. This will help redevelopment occur more quickly,
equitably and effectively. In our previous demonstration village disposition, NORA evaluated 12 categories that included
financial capacity, experience in urban communities, innovation, affordability and design. We coupled this process with a single
sealed highest bid amongst qualified participants to ensure that we had an equitable manner of choosing between equally
qualified entities.

NORA is also trying to ensure transparency by posting material publicly and publicizing its neighborhood meetings.
NORA has posted this draft plan at its website and is posting the written feedback that it received from other entities to this plan.
NORA will also post a response to the oral and written comments it received at its November 28, 2007 public forum. NORA is
also posting a document that describes the content of the Lot Next Door Ordinance and its Neighborhood Redevelopment
Compacts. In addition, NORA will post a schedule of future meetings on its website. Copies of all these NORA documents
will also be available at its offices to allow those without internet access an opportunity to participate. Once dispositions have
begun, NORA will also post information regarding the levels of affordability it has achieved, the number of properties it has
disposed of, and the level of participation in the Lot Next Door program.

NORA will also return email and calls in a timely manner and has a full-time receptionist to answer calls. It can also be
reached at nora@cityofno.com


H. Promote Homeownership

Countless studies have shown that homeowners build more wealth than renters and can become more deeply involved
in their communities. NORA believes these LLT properties represent an excellent opportunity to create homeownership and will
promote that use on these properties. At the same time, NORA recognizes that certain populations lack the assets or income to

1 For example, under the current tax sale procedures numerous large out of town entities purchase properties in bulk and don’t
develop them for years thereby allowing them to slowly deteriorate.
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qualify for homeownership. NORA is committed to pursuing subsidies to expand opportunities for homeownership. NORA will
also, in conjunction with neighborhoods, work to make certain properties available for rental housing as well and look to the
creation of doubles and other forms of rental properties that can build community wealth. NORA will also try to ensure that all
rental dispositions contain sufficient restriction to ensure that all developments are high quality and well maintained.

I. Demolish Judiciously
Demolition prevents health hazards, eliminates blighted structures and reduces long term maintenance costs. On the
other hand, the demolition of properties is expensive and most studies have found that it takes longer for vacant lots to be
redeveloped than existing structures.2 Taken together, NORA believes that demolition should be done in the following cases: 1)
on all structures in imminent danger of collapse or that are in need of extensive renovation or hazard mitigation, 2) areas which
are likely to be longer term development priorities, and 3) on properties being transitioned to alternative uses (community
garden, lot next door, etc). NORA also believes that we should be particularly careful in historic districts, and has made
arrangements with HDLC to inspect LLT properties in such areas. Our current estimates suggest that between 25%-35% of
properties with structures will require demolition. We are working to maximize the amount of such demolition that is covered
by FEMA.


J. Conformity with Long Term Strategic Recovery Plan
NORA is committed to the City of New Orleans’ Long Term Strategic Recovery Plan and will seek to further the goals
laid out therein. As described above, NORA believes in a targeted clustered strategy and intends to initiate many of its early
dispositions in the 17 target zones. We will also endeavor to coordinate our dispositions with infrastructure and other
developments described in the Recovery Plan.
Please see Questions 3 and 7 on the application for additional information regarding conformity of the Disposition
Plan with the Recovery Plan.


K. Multiple Scales

NORA intends to work with both large and small developers as well as individuals and public agencies. The exact mix
will be determined by funding availability, the size of a dispositions, the desired form of development and NORA’s own internal
administrative capacity. NORA also intends to sell properties to both non-profit and for profit entities.

L. Green Building

All dispositions will be made in conformity with the existing housing code and any green building or energy saving
ordinances. NORA will also endeavor to ensure that development and rehabilitation utilizes green building and energy reduction
features. It will also endeavor to reduce the long-term maintenance costs of any property of which it disposes. NORA will seek
out green building experts and universities to help shape its approach to green building. NORA will also try to make these
experts available to neighborhoods so that they can assess the ramifications of different green building choices.


M. Safety and Elevation

It is vital that New Orleans rebuild safer, stronger and smarter. It is vital that newly constructed properties on LLT land
(and for that matter all sites NORA acquires through any of its pipelines) are sufficiently elevated to exceed required base flood
elevations and that rehabbed structures also adopt sensible mitigation techniques. In addition, where feasible, construction
should use materials and designs to limit the damaging effects of wind and flooding. To assist in these efforts, NORA will urge
Chairman Don Powell, FEMA and the governor to release Hazard Mitigation funds and to waive unduly burdensome restrictions
that have impeded their use. NORA in conjunction with neighborhoods will also attempt to promote land swaps and rights of
first refusal that can give people incentives and opportunities to move to safer areas.


N. Historic Preservation


2 An analysis in Philadelphia found that only 7% of vacant lots were successfully redeveloped within 15 years, where as 40% of
blighted structures were redeveloped. Conversations with housing officials in NY during the 70’s suggested similar results as
well.
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New Orleans has a unique and wonderful historic legacy that includes its architecture and buildings. NORA, as stated
above, will seek to demolish judiciously and take efforts to ensure that salvageable historic structures are preserved where
feasible. NORA also recognizes that it is potentially subject to an agreement executed by the Office of Community
Development (“OCD”) regarding treatment of historic structures under section 106. NORA will work with OCD and both state
and local preservation organizations to identify appropriate protocols.

O. Collaborations

There are countless issues involved in the redevelopment, management and disposition of these properties. NORA is
committed to working with neighborhoods and planning districts to implement its strategies. It also believes that these efforts
can be aided by leveraging significant existing expertise on a variety of topics. NORA will work to engage outside experts on
topics ranging from green building, land banking, building practices, and training and evaluating contractors.

P. Homeowner’s Insurance

The cost of homeowner’s insurance has skyrocketed and is negatively impacting every form of development in the city.
NORA will investigate mechanisms to reduce these costs including acquiring global insurance for all LLT properties. NORA
will also seek to ensure that these properties are built with features that mitigate the effects of storms and should therefore entitle
owners to greater discounts from insurers.

Q. Coordination and Flexibility


The principles laid out in this document are a guiding vision for the disposition of the LLT properties. To actually
achieve this vision will require additional resources and additional flexibility from traditional rules governing CDBG funds.
NORA intends to work with the LRA, LLT, OCD and HUD to ensure that it receives the requisite financial resources and
administrative flexibility. The Disposition Plan, itself will also become more specific and concrete as additional clarity is
achieved on these topics. To enhance the vision of this document, each of the aforementioned entities will also need to utilize
their complete independent legal and political authorities as well, and nothing contained herein should be considered a limitation
of those authorities.

DEMAND ANALYSIS

A. Market Rate Demand

The disposition of LLT properties and many other recovery efforts are sensitive to the overall demand for housing and
property in the City of New Orleans. As we dispose of properties we intend to be aggressive, yet sensitive to the overall market
demand and inventory levels. Broadly speaking, overall demand has three key components: 1) market-rate demand, 2) non-
profit and subsidized demand, 3) and non-housing demand. Market rate demand is significantly influenced by the price of
housing (which in turn is driven by construction costs), the presence of good schools and safe neighborhoods, and the
availability of well-paying jobs. In New Orleans, there is already almost 12 months of inventory on the market based on current
prices and sales level.3
In terms of construction costs, the typical shotgun home, which is approximately 1000-1200 sf, now costs almost
$150,000 to develop and over $8000 per year to maintain and insure (please see exhibit A).4 The situation is slightly less dire
with rehabilitation; however the long delay since the storm has rendered many LLT properties significantly damaged, and
increased the required rehabilitation costs of these properties close to the cost of new construction.5
To afford a 150,000 home, conventional underwriting would require an income of over $60,000. At this price point,
market demand is limited and even giving away the land for free will not alter these dynamics. To rectify this shortfall, we are
seeking increased support for soft-seconds and other housing subsidies at both the state and federal levels. 6 More generally, we
need to make a concerted effort to draw back many of the families who have left New Orleans.

B. Non-Profit Demand

3 These figures were provided by conversations with local realtors and various consultants.
4 Please see the spreadsheet Exhibit for a more detailed description of costs. All figures in that spreadsheet come from extensive
interviews with a variety of developers, contractors and underwriters.
5 Rehabilitation runs approximately $60-$80 psf vs. $105+ psf for new construction. These figures are for hard costs only and
will vary based on the extent of damage.
6 This includes both the proposal put forward by the Jeremiah Group and the pending federal legislation §1668
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Besides market-rate demand there is significant pent-up demand from non-profits and other organizations with federal
subsidies such as developers of Low-Income Housing Tax Credit (“LIHTC”) projects. It is important to recognize that many
organizations’ publicly stated demand levels are for development that occurs across a number of years, especially those relying
on annual installments of subsidies or donations. In addition, many organizations have already made sizable acquisitions that
will consume their short-term development resources. In preparing our financial models we have therefore looked carefully at
the annual demand for LLT properties. Our analysis suggests that it is vital that NORA allocate properties in a steady manner
consistent with market demand. It is also important that NORA integrate these non-profit developments with market-rate units to
create mixed-income communities, as stressed in the city’s neighborhood planning process.

C. Non-Development Demand

Another source of demand for properties is for merger with homeowner’s existing lots, such as through the City’s
upcoming Lot Next Door Program. In addition, there is demand for community gardens and pocket parks. There may even be
possibilities for urban agriculture or other economic development functions. These types of transactions are less impacted by
the general dynamics of the housing market because these lots are used for non-development purposes. The drawback to this
source of demand is that the process requires significant administration to complete individual transactions and may require
initial capital investments in the case of community gardens. NORA is currently working on these innovative approaches and
analyzing their eligibility under traditional CDBG regulations.

LLT TRANSFER APPROACH
A. NORA to be Exclusive Recipient


Making NORA the sole recipient of all LLT properties in Orleans Parish will provide four significant benefits:

1) It allows NORA to cluster LLT properties with its numerous other property pipelines (blighted, adjudicated, market
acquisitions) and finally make the distribution of property more coherent.

2) It ensures that all development occurs in compliance with the city’s comprehensive planning process and target zone
strategy. NORA’s central role will also ensure that development coincides with the city’s planned investments in
infrastructure, schools and public safety.

3) Centralizing property with NORA allows development to proceed at a consistent and sustainable pace that does not
flood the market.

4) NORA’s experience with CDBG compliance and monitoring will provide assurances that all dispositions are consistent
with CDBG regulations.

B. Support for Maintenance

As it disposes of properties, NORA will incur significant maintenance, security and insurance costs. Our current
budget suggests that these costs, plus the administrative costs involved in managing these properties, will exceed the proceeds
we recoup from the sale of these properties, particularly in the short term when we will incur the largest maintenance burden.
We therefore request that the state allow proceeds from the property dispositions to go towards these necessary maintenance and
administrative costs and that the state provide NORA with additional funds equal to the anticipated excess cost of maintenance.
One significant benefit to NORA’s deliberate and clustered distribution of properties is that the LLT properties may appreciate
in value over time. NORA intends to share this future appreciation with the LLT.

C. Clarity on Future Disbursements

Our current understanding is that LLT has already identified close to 4000 properties in Orleans parish that may be
available for transfer to NORA by the middle of 2008. It is also our understanding that another 3000-4000 properties may still
be in the pipeline. As we determine short and long term priorities and initiate clustering efforts, it is crucial that we have clear
data on where these properties will be located within the city. We ask that the LLT provide enhanced information regarding the
overall distribution of these properties prior to formal transfer.
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EXHIBIT A

Shotgun (SFH) Construction
1100 sf
Construction Costs
Hard Costs
105 psf
115500
Soft Costs
15% Hard costs
17325
Contigency
5% Total Costs
6641.25
Developer Fee
5% Total Costs
6641.25
146107.5
Financing Costs
Construction Interest Rate
8%
Build Time
6

months
Sell Time
3

months
Average Draw
50%
4,
183.99
Total Costs/Sale Price
150,

291.49
Purchase of Property
Downpayment 10%
15,
029.15
Mortgage Balance
90%
135,

262.34
Interest Rate
7.0%
Term
30

years (fixed)
Annual Mtg Payment
$10,798.84
Annual HO Insurance
2% appraised value
$ 3 ,005.83
Annual Taxes
1.881% millidge (above 75K)
$ 1 ,416.23
Annual Utilities
150.

00 per month
$ 1 ,800.00
Maintainence Allowance
$ 1 ,800.00
Total Annual Cost of Homeownership
$18,820.91
Affordability
Percentage of Income on HO
30%
AMI (for family of four)
52000
Annual Salary Required to afford standard home
$62,736.36
% of AMI
121%

END OF RESPONSE TO QUESTION 2




3. PARISH LONG TERM RECOVERY PLAN

This section of the plan must indicate whether the parish’s a Long Term Community Recovery Plan has
been submitted and approved by the LRA Board. If the plan has not been submitted and approved, this
section must include the timeframe for completion. In addition, this section must describe how the policies
outlined in the proposed Parish Redevelopment and Disposition Plan were developed in conformance with
the Long Term Community Recovery Plan.

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In the aftermath of Hurricanes Katrina and Rita, the Mayor of the City of New Orleans, the
President of the City Council for the City of New Orleans, the Commissioner of the City Planning
Commission for Orleans Parish, and the Greater New Orleans and Community Support Organization
Foundations entered into a Memorandum of Understanding on August 28, 2006 that established the “Unified
New Orleans Neighborhood Recovery Planning Process” as the means of consolidating post-disaster citizen,
governmental, and private sector recovery and redevelopment plans into a single Parish long-term
community recovery plan known as the “Orleans Parish Recovery and Redevelopment Plan (“the Plan”).
The Plan is a legal document established to guide Parish governmental policies and was developed
pursuant to La R.S., 33:101, et seq., which authorizes the Parish to make and adopt plans in the interest of
public safety and the continued progress and growth of the community, and the Home Rule Charter of the
City of New Orleans, which provides under Section 5-402(3)(e) that the City Planning Commission shall
prepare and recommend to the New Orleans City Council, “[p]lans for the replanning, improvement, and
reconstruction of neighborhood and community centers and of areas or districts destroyed or seriously
damaged by fire, earthquake, flood or other disasters.”
The Plan was approved by the Louisiana Recovery Authority (LRA), pursuant to the requirements
established by that entity under its “Long-Term Community Recovery Program,” which is the principle State
recovery-funding vehicle available to local governments for projects aimed at accommodating long-term
redevelopment of the community. More specifically, the Plan includes projects for funding that are “selected
by the parishes based on local priorities;” “demonstrate broad-based support from the local community, as
indicated by inclusion in a broadly accepted recovery plan, or similar mechanism;” and “include direct
benefits to the most affected municipalities and communities or have the agreement from the elected officials
of the most impacted municipalities.” As the initial phase of this program the city has enumerated a recovery
strategy that includes a focus on 17 Target Recovery Areas. The Disposition Plan described in this document
has been created to reflect the Plan and shares its core principles with regard to the selection of projects. The
Disposition Plan attempts to implement the Plan in light of current market conditions and the overall
inventory of properties. It shares a focus on clustered, targeted development and will support the
redevelopment slated for the Target Recovery Areas.







4. METHODS TO BE USED TO ENSURE COMFORMANCE WITH CDBG GUIDELINES

This section of the plan must provide information regarding parish’s redevelopment program structure and
qualifications of staff responsible for ensuring CDBG Guidelines are met. If work is to be contracted out,
please describe the proposed method of procurement and selection criteria.

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NORA has traditionally been funded by CDBG and has a long history of monitoring its own
compliance with these regulations. NORA’s current director of finance and administration, Sheri
Labranche-Jackson has over 10 years experience. She is assisted by NORA’s general counsel and two
additional lawyers. NORA compliance personnel will include a dedicated accountant and an additional
support staff member. All of these individuals have experience with CDBG compliance and will insure that
all NORA activities comply with these guidelines. Biographies of NORA’s key personnel are available
upon request.
CDBG guidelines are ambiguous in a number of areas that will play a crucial role on the final
disposition of properties and the exact scope of the plan. Among other issues, CDBG guidelines require
that the key activities contained herein should qualify as “National Objectives (Elimination of Blight, LMI
Benefit, Urgent Need).” These national objectives have been developed in the context of far smaller
program and it is not clear how they apply to the recovery context. Among the questions NORA is seeking
clarity from HUD are: (1) whether properties can be sold below appraised value for populations other than
those making below 80% of AMI, (2) whether costs and proceeds can be treated in bulk, and (3) whether
alternative dispositions such as Lot Next Door and urban agriculture are permitted under CDBG guidelines
if the properties are not sold for appraised value. To resolve these questions, NORA, the LRA, LLT and
City are all in on-going discussions with HUD.



5. AFFORDABLE HOUSING

This section of the plan must describe the methods and redevelopment policies to be used by the parish in
order to ensure that 25% of all properties are redeveloped for affordable housing in accordance with the
requirements outlined in Action Plan Amendment 14.

NORA intends to balance its disposition of properties across the economic spectrum and is
committed to exceeding the LRA’s goal that 25% of developed properties be redeveloped for affordable
housing. NORA’s current goal is that 25% of developed properties will support affordable residential
homeownership, with additional properties being utilized to provide affordable rental housing. In addition,
numerous other properties will be directed to families making between 80%-120% of AMI, who are also in
need of more affordable housing. Where feasible under CDBG guidelines, NORA may elect to sell
properties below fair market value if it supports the creation of affordable housing. In structuring these
programs, NORA will try, to the extent legally permitted, to create opportunities for first responders, police
and firefighters, teachers and others involved in the recovery effort. NORA also intends to work closely
neighborhoods to identify the appropriate scope of affordable programs for each neighborhood. As NORA
has stressed above, one size does not fit all and all dispositions must be neighborhood specific.
In these goals NORA is aided by an active non-profit and subsidized development community that
targets low-income individuals and often brings significant capital to redevelopment initiatives. These non-
profits use charitable funds and subsidies to ensure that their products are affordable to a variety of different
end-users. NORA is actively seeking its own subsidies, including funds for soft seconds, as well as
supporting community groups such as the Jeremiah Group in their efforts to secure such subsidies. These
subsidies are crucial to helping make dispositions more affordable and equitable.
All NORA dispositions will be subject to contractual agreements that will require non-profits and other
developers to comply with any representations they make regarding affordability and as well any additional
requirements imposed by CDBG guidelines and Action Plan Amendment 14. Please see question 2 for
additional information on affordability measures.
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6. CONVERSION OF PROPERTY TO GREENSPACE

It is anticipated that funding will become available from the FEMA Hazard Mitigation Grant Program
(HMGP) for properties acquired by the LLT. HMGP funding can be used for reimbursement of costs
associated with acquiring properties that risk future damage when those properties are converted to
greenspace in perpetuity. This section of the plan must describe the method by which the parish will
identify these greenspace areas and include timelines for the conversion of these properties.


Due to their geographically scattered locations, most LLT properties will not be suitable to
provide significant contiguous green space. Instead, where feasible and supported by the neighborhood,
NORA will attempt to create community gardens and urban agriculture initiatives with a small portion of
the LLT properties. These initiatives will be pursued with simultaneous investments into housing and
redevelopment to help revitalize our neighborhoods. Through the Lot Next Door program, a number of
properties will also be transformed into yards and open space.
The Orleans Parish Long Term Recovery Plan provides guidance on those areas of the city that are most
in need of Hazard Mitigation. This guidance is still being refined in light of on-going rehabilitation to New
Orleans’ infrastructure and its levees. Together with NORA, the city will articulate a framework for
determining which properties, if any, are in regions that are suited for permanent long-term mitigation.
NORA and the City will also work together to determine if HPMG funds can support redevelopment and
maintenance activities other than permanent relocation, including raised elevations.





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7. CONFORMING TO RECOVERY AND REBUILDING PRINCIPLES

This section of the plan must describe how the parish’s redevelopment and disposition plan addresses the
following five principles for recovery and rebuilding as recommended by the APA/AIA and adopted by the
Louisiana Recovery Authority Board on December 1, 2005:


-Create infrastructure that supports recovery by restoring confidence, enhancing the quality of life,

and withstanding future disasters;


-Promote economic growth that benefits everyone;


-Provide public services that enhance the quality of life for everyone;


-Pursue policies that promote a healthy environment;


-Promote planning and design of communities that advance livability.


The NORA LLT Property Disposition Plan is based directly on the strategies and priorities codified
in the “Orleans Parish Recovery and Redevelopment Plan” (“the Plan”), which in itself is a citizen-
generated statement of public policy for the physical redevelopment of Orleans Parish housing,
infrastructure, flood control, public space, schools, medical facilities, commercial property, economic,
social and cultural networks. As such, both the NORA Disposition Plan and the overall Parish recovery plan
are action-oriented policymaking guides that outlines projects, procedures and implementation strategies for
use among Parish governmental entities that are charged with carrying out recovery-related related
functions on behalf of the citizens of Orleans Parish. In addition, these plans are civic tools to help guide
the repair and rebuilding of New Orleans in a rational way that creates stability and paves the way for future
growth and prosperity. They provide a systematic approach to repairing and rebuilding the damage caused
by Hurricanes Katrina and Rita in an expeditious and measured timeframe that accommodates the
infrastructure and essential services needs of current residents, while planning for their expansion as new
citizens establish residence in the Parish over the coming years.

The Plans are also general policy planning guides that should be used by Parish governmental entities to
structure and enable the development of more detailed, situation-specific policies, programs, and projects
that contribute to the recovery of Orleans Parish. In so doing, the Plans focus primarily on programmatic
strategies, capital projects, and intergovernmental procedures aimed at remedying economic and physical
damage within the Parish attributed to Hurricanes Katrina and Rita and establishing hazard mitigation
systems to reduce the risk of future harm. Unlike traditional master plans, the Plans are intended as a means
of establishing programs and projects within a short timeframe, ranging from immediate application to
implementation within five years.

Within this framework, the Plans mandate roles, responsibilities, and procedures for
coordination among Parish governmental entities that will coordinate major aspects of the recommended
recovery programs and projects by virtue of their organizational duties. In addition, the Plans detail non-
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mandatory financial management and implementation strategies that should be referenced and utilized to the
extent practicable by all Parish governmental entities as they develop programs and projects that impact
overall recovery within Orleans Parish; particularly when those governmental actions influence the
restoration or improvement of physical Parish assets, including but not limited to residential housing;
commercial property; streets; water, sewerage and drainage systems; public schools; public safety; public
parks, libraries, and cultural facilities.

The Plans also provide a strategic framework for maximizing public financing and private investment
towards Parish recovery projects. Specifically, the Plans detail major sources of federal and state funds that
are available for disaster-recovery related projects and presents strategies for how to leverage those funds
and better apply them to prioritized Parish recovery projects. The Plans outline strategies for targeted
utilization of private sector monies, including insurance proceeds and investment dollars, in complementing
publicly financed capital projects. Finally, the Plans detail currently unfunded recovery programs and
projects that should serve as basis for additional future funding requests from the State, the federal
government or other entities.







8. PARISH STRATEGY FOR PROPERTY INSURANCE, MAINTENANCE, AND SECURITY

Provide detail regarding the parish strategy for insuring, maintaining, and securing Louisiana Land Title
properties until property disposition. If non-profit services will be utilized for these efforts, please provide
information about the non-profit organization’s capacity. If the parish elects not to receive the LLT
properties, please indicate that the Louisiana Land Trust will be responsible for these items. It is important
to note that the parish will be required to track program income generated from property disposition and
must adopt the Louisiana Land Trust’s methods for tracking costs per property. (Please see attached
guidelines).

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Please see attached budget for greater detail. That budget is meant to be illustrative rather
than prescriptive. NORA will seek to move properties as quickly as can be done so in a responsible manner
that is sensitive to market demand.
Based on figures provided by the LLT, NORA estimates that maintenance, security and insurance
will range from $2000-$3000 per year on a typical property. Based on initial estimates, New Orleans is
slated to eventually receive between 6,000-9,000 properties from the LLT. This would suggest that NORA
will require $15-$25 million annually to maintain these properties. Clearly, the total cost of maintenance
will decline as properties are sold, rehabilitated, and demolished. However, as the plan set forth above
describes, it would be extremely foolish to dump properties on to the market to avoid maintenance and
security costs. In particular if there is no active redevelopment/rehabilitation market, property owners are
likely to retain properties but not maintain or develop them. By selling properties more quickly than the
market can absorb them, NORA would simply shift the burden of maintenance to the City’s code
enforcement department. NORA also has the resources to develop alternative maintenance programs and
to support non-development outcomes such as the Lot Next Door program. Lot Next Door will be
particularly vital in reducing maintenance costs and NORA intends to pursue it vigorously.

NORA is requesting that the State, as the creator of the Road Home program, help bear these
maintenance and security costs, particularly in the short-term when the burden will be its greatest. As the
owner of these properties, NORA will agree to manage the actual maintenance efforts, but expects
significant funding for this maintenance to come from a combination of direct appropriation and the
redirection of proceeds from the sale of property into these activities. As noted above, given the overall
weakness in the market, it is unlikely that proceeds will cover all costs and NORA takes these properties
with the explicit understanding that the LLT or State of Louisiana will help fill this gap.

The attached budget estimates the amount of unfunded maintenance liabilities that NORA faces.
NORA believes that the state should provide a one-time payment to cover this shortfall. These funds would
be placed into trust to maintain the LLT properties as they are disposed over time. NORA also wants to
stress that funding to support maintenance of these properties should not come at the expense of providing
appropriate grants to applicants. In the event that there were unexpected profits, NORA would willingly
share those with the state to compensate it for its initial investment. These profits could be used to fill gaps
in the road home program and, in the event the Road Home program is fully funded, they could provide
additional resources to help the storm damaged neighborhoods.





9. REDEVELOPMENT AND DISPOSITION TIMELINE

Provide a timeline for the redevelopment and/or disposition of parish properties.

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As the recipient of LLT properties, NORA anticipates that it will receive close to 4000
properties by the beginning of 2008, with an additional 2,000-5,000 to follow throughout the year. In
addition, there are over 10,000 properties that have been formally designated as blighted, adjudicated and
tax sale eligible and by some estimates there are more than 15,000 additional units in substandard
conditions. For redevelopment to occur successfully these various substandard properties must be
addressed in tandem with the LLT properties and they will absorb a portion of the available demand. This
in turn means that it will take a number of years for NORA to sell or otherwise dispose of the LLT
properties.
NORA’s disposition speed will also be significantly driven by market conditions. By current estimates
there are close to 12 months of property on the market at current sales rates. If NORA were to place too
much unabsorbed property onto the market it could drastically disrupt the current sales market. In addition,
the currently inflated price of construction and insurance renders it extremely difficult for a family making
even 100% of AMI to qualify to purchase new construction. As a result, New Orleans, somewhat
paradoxically, has limits on the demand for new construction at market rates. To create demand, housing
must be subsidized either by reducing its cost of production or the ability of consumer’s to afford it.
Our objective is to meet the following benchmarks during our first year of operation (which we
anticipate will begin in the spring of next year when we receive our first LLT properties):
a. Offer 500-1000 properties through the Lot Next Door program, with hopefully a participation
rate of 15%
b. Bundle and sell approximately 400-500 properties for market rate development sites for new
construction and rehab, of which 60-75% will be LLT properties
c. Bundle and sell approximately 400-500 properties for affordable and working-class housing, of
which 60-75% will be LLT properties
d. Create long-term maintenance solutions/open space - including slow-growing grass, community
gardens and urban agriculture - for 100 properties, all of which will be LLT properties
e. If and when demand grows, or construction costs shrink, we will be able to expand this program

If we succeed at these targets, approximately 800 properties a year will reach a final resolution. That
suggests it will take 9-10 years to fully return the LLT properties to commerce. Please also see attached
budget for a more detailed timeline. Please note that all projections are subject to revision once we receive
greater clarity on the location of these properties and when they will be turned over. Our objective is to
move rapidly and responsibly.





10. LOCAL/REGIONAL COMMITMENT AND INVOLVEMENT WITH THE DEVELOPMENT
OF THE REDEVELOPMENT AND DISPOSITION PLAN

Briefly describe the local and/or regional commitment to the project (i.e. level of participation of local
officials, business leaders, neighborhoods, and other parish related groups). In addition, detail the methods
that will be utilized to solicit citizen participation in planning and implementation of the development of
the plan. A minimum of one public workshop, charrette, or open house is required prior to approval.
Please attach a tear sheet or affidavit of publication for the meeting, sign in sheet, minutes, and parish
response to public comments.

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NORA conducted a public forum to discuss its plan for redevelopment and disposition of the LLT
properties on November 28th. This forum was extremely well attended and the comments provided at that
meeting have been incorporated into this document. NORA has also posted a response to all comments on
its website. Among the key themes in that forum was a need for NORA to fully specify the process of
community engagement it would undertake. These steps are outlined below.

NORA is committed to consulting with neighborhoods before any decisions are reached regarding the
disposition of LLT properties. NORA is particularly cognizant of the role that planning districts should
play in this process. NORA will solicit feedback from all the planning districts and believes that the plans
created by these groups as part of the neighborhood planning process and adopted as part of the Orleans
Parish Recovery and Redevelopment Plan should provide a starting point in defining dispositions strategies
for the LLT properties. NORA will seek to integrate these plans with LRA and CDBG requirements
regarding these properties, market analysis regarding what is feasible at different prices, NORA’s own
policies and procedures, and any city and state ordinances, including the Lot Next Door program. NORA
will also, where appropriate, seek to work with neighborhood groups within these planning districts,
particularly for those neighborhoods with significant numbers of properties. The Orleans Parish Recovery
and Redevelopment Plan was the subject of intense community participation and shapes the NORA
Disposition Plan with regard to LLT properties. Please see Questions 3 and 7 for a complete description of
the Recovery Plan. NORA is committed to ensuring that all dispositions conform to the Recovery Plan.

Once NORA has a more accurate understanding of all available property pipelines – including LLT,
blighted and adjudicated properties – it will share that information with neighborhoods groups to identify
potential comprehensive disposition strategies. It will also attempt to create Neighborhood Redevelopment
Compacts, where applicable, to formalize its relationship with the community. In anticipation of receiving
the LLT properties NORA is actively pursuing a program of community engagement, which it intends to
continue.









11. PARISH PLAN APPROVAL

Briefly describe the plan approval process and date on which the plan was approved. Attach a copy of the
Resolution adopting the plan.

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NORA met with the City Council’s Recovery Committee on December 4 and the entire council
was presented the plan on December 6. The plan was approved by the full Council on December 6th.
In the course of its recovery efforts NORA has had contact with individual council members and its
disposition plan reflects these earlier conversations.

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12. ESTIMATED BUDGET AND FINANCING

Include all funding amounts and sources for all proposed activities outlined in the plan i.e. maintenance
and security costs, procuring a CDBG administrator, etc. Please complete all appropriate columns and
specify whether funds are Approved, Pending, or currently under Negotiation. If approved, please provide
all letter of commitments.
PLEASE SEE ATTACHED BUDGET

Source
Total
Percent
Status of Funds
Parish





State





Local





In-Kind





Other Federal Funds:












Other Funds:











TOTAL









ESTIMATED BUDGET
Please provide a detailed breakdown on all projected costs by line item.

Activity
Total Cost
Administrative (actual

time only)
Property Disposition

-Insurance
-Maintenance (force
account only)
-Security (force
account only)
Other (Explain on

separate sheet)


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TOTAL



*
Parishes can only be reimbursed for actual costs related to property maintenance and security (i.e. force
account).








NAME AND SIGNATURE OF AUTHORIZED REPRESENTATIVE





Signature, Chief Executive Officer
Title






Name Typed
Date



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LRA - Approved Orleans Parish Lot Disposition Plan (Dec 11, 2007).doc 22