Does New Orleans need an affordable housing mandate downtown? See what a new report says – NOLA.com

Report on New Orleans’ Affordable Housing Policy and Alignment with Sustainable Development Goals

A report by HR&A Advisors recommends a significant rollback of the City of New Orleans’ affordable housing plan. This proposal necessitates a re-evaluation of the city’s strategy for achieving key Sustainable Development Goals (SDGs), particularly SDG 11 (Sustainable Cities and Communities) and SDG 10 (Reduced Inequalities).

Analysis of Current “Mandatory Inclusionary Zoning” Policy

Policy Objectives and SDG Alignment

The “mandatory inclusionary zoning” law, adopted in 2019, was designed to directly address SDG 11.1, which aims to ensure access for all to adequate, safe, and affordable housing. By compelling private developers to contribute to the affordable housing stock, the policy also sought to advance SDG 10 by mitigating economic segregation within the urban core.

Key Provisions of the 2019 Law

• Developers in the downtown core, including the Central Business District and French Quarter, are mandated to offer at least 10% of residential units at below-market, affordable rates.
• In neighborhoods on the outskirts of downtown, the requirement is set at 5% of units.
• The law provides an option for developers to pay a per-unit fee to forego the requirement.

Proposed Revisions and Economic Feasibility Concerns

Recommendations from HR&A Advisors

The new report suggests a fundamental shift from a mandatory policy to a voluntary one, citing challenges to economic growth and sustainable development as outlined in SDG 8 (Decent Work and Economic Growth).

• The report proposes eliminating the mandatory zoning requirement for affordable units.
• It suggests replacing the mandate with a citywide recommendation for developers to make 5% of units affordable.

Rationale for Policy Reversal: Economic Viability and SDG 8

The recommendation is based on an analysis that the current policy has become economically infeasible, thereby hindering new housing development and undermining the broader goals of SDG 11.

• Market Infeasibility: The report states that in weaker markets with thin margins, high affordability requirements render projects unviable, leading to a halt in new housing production.
• Soaring Costs: Stakeholders, including real estate attorneys and consultants, confirm that rising costs for building materials, construction, and insurance have made the current affordability mandates untenable for property owners.
• Impact on Development: The policy, intended to increase affordable housing, is now argued to stifle the very development needed to expand the city’s overall housing stock, which conflicts with the principles of sustainable economic growth (SDG 8).

Stakeholder Perspectives and Collaborative Governance (SDG 17)

The proposed changes have elicited responses from various stakeholders, highlighting the need for effective partnerships (SDG 17) between the public sector, private industry, and civil society to achieve housing goals.

Real Estate and Development Sector

Developers and their representatives view the current law as an “unattainable” policy that has proven “incompatible with actual development.” They see the proposed rollback as a necessary adjustment to market realities.

Housing Advocacy Groups

Housing advocates, while committed to SDG 11, have shown a nuanced response. Andreanecia Morris of the Greater New Orleans Housing Alliance acknowledged the validity of the market analysis, stating that due to soaring costs, the “numbers no longer add up.” However, she cautioned that any concessions to developers must be tied to the provision of “necessary housing for the average New Orleanian.”

Path Forward and Implications for Sustainable Urban Development

Legislative Process

The recommendations are not yet policy and must undergo a formal approval process, demonstrating participatory and integrated urban planning as encouraged by SDG 11.3.

1. The report’s suggestions will be discussed before the City Planning Commission.
2. If approved, the recommendations must then be passed into law by the New Orleans City Council.

Conclusion: Re-evaluating Strategies for SDG 11

The proposed policy shift in New Orleans represents a critical re-evaluation of the mechanisms used to achieve affordable and inclusive urban communities. Stakeholders argue that this change is not a retreat from the city’s commitment to affordable housing but rather a “retreat from a failed policy.” The challenge for policymakers will be to develop a new framework that successfully balances the social objectives of SDG 10 and SDG 11 with the economic realities necessary to foster sustainable growth and development under SDG 8.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 11: Sustainable Cities and Communities
   • The article’s central theme is urban housing policy in New Orleans, specifically the debate over “mandatory inclusionary zoning” to create affordable housing. This directly relates to SDG 11’s goal of making cities and human settlements inclusive, safe, resilient, and sustainable. The discussion about developing the downtown core, providing housing, and creating effective urban policies is central to this goal.
2. SDG 10: Reduced Inequalities
   • The policy of inclusionary zoning is a direct attempt to reduce economic inequality. By requiring developers to offer units at below-market rates, the policy aims to ensure that lower-income residents are not excluded from living in certain parts of the city, such as the “downtown core.” The debate over weakening this mandate is fundamentally a discussion about the balance between development and ensuring economic inclusion in housing.
3. SDG 1: No Poverty
   • The article addresses the need for “housing at rates accessible to lower-income residents.” Access to affordable and stable housing is a critical component in poverty reduction. The challenges discussed, such as the high cost of construction and insurance making projects infeasible, highlight the economic barriers that prevent the creation of housing necessary to support the poor and vulnerable, which is a key concern of SDG 1.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 11.1: Ensure access for all to adequate, safe and affordable housing and basic services.
   • The entire article revolves around New Orleans’ affordable housing plan. The “mandatory inclusionary zoning” law, which compels developers to “offer at least 10% of units at affordable rates,” is a direct policy instrument aimed at achieving this target. The debate over whether this policy is effective or stifles development is a core challenge in reaching Target 11.1.
2. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… economic or other status.
   • Inclusionary zoning is a policy designed to foster economic inclusion within communities. By mandating affordable units within market-rate developments, the city aims to create mixed-income neighborhoods. The proposed rollback to a voluntary recommendation is presented as a concession to “real estate interests,” highlighting the tension between market forces and policies that promote the inclusion of people with lower economic status.
3. Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services…
   • The article’s focus on providing “necessary housing for the average New Orleanian” and for “lower-income residents” directly connects to this target. Housing is a fundamental basic service, and the policy discussion is about how to ensure the city’s vulnerable populations can access it amid “soaring costs of building and insuring homes.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Percentage of affordable units in new housing developments.
   • The article provides specific, quantifiable metrics that serve as direct indicators. The current law mandates “at least 10% of units at affordable rates” in the downtown core and “5%” in surrounding neighborhoods. The new proposal suggests a “recommendation, not a mandate” for “5% of units affordable citywide.” These percentages are clear indicators used to define and measure the city’s affordable housing policy.
2. Rate of new housing production.
   • An implied indicator is the overall rate of housing development. The argument against the current policy is that it renders projects “infeasible, leading to little or no new housing production.” Therefore, tracking the number of new housing units built or development projects initiated would be a key indicator to measure the economic impact and success of the chosen housing policy.
3. Economic feasibility of development.
   • The article repeatedly mentions factors that affect the feasibility of building affordable housing. These include “soaring costs of building materials, construction and insurance.” These costs can be tracked as indicators to understand the economic environment and determine whether affordability mandates are compatible with sustainable development.

SDGs, Targets, and Indicators Analysis

Source: nola.com