(Washington, D.C.) – U.S. Senator David Vitter (R-La.) today sent a letter to Tamara Gray, the Director of the Special Applications Center for the U.S. Department of Housing and Urban Development (HUD), urging HUD to deny a request from the Housing Authority of New Orleans (HANO) to keep and redevelop excess property in New Orleans.

“The common sense thing to do would be for HANO to sell its excess properties. The idle and dilapidated properties are a waste of resources and harm their communities. Selling them could revitalize these neighborhoods and could bring millions of dollars in investment for the housing that already exists,” Vitter said.

HANO submitted an application to HUD in September of 2013 asking to sell its excess properties, which are valued at over $6 million. In July, Vitter pushed HUD to approve this request and speed up the divestment process for all of HANO’s excess property sites. However, HANO’s leadership has changed and they are now requesting to keep the properties and redevelop them into mixed-income communities.

New Orleans City Councilmember-At-Large Stacy Head has also raised concerns. She has been critical that HANO has not provided a clear plan for implementation and asked for a comprehensive study to be completed on the benefits of both options.

The text of the letter is below.

November 20, 2014

Tamara Gray
Director, Special Applications Center
US Department of Housing and Urban Development
77 West Jackson Boulevard, Room 2401
Chicago, IL 60604

Dear Ms. Gray:

It has come to my attention that the Housing Authority of New Orleans (HANO), in a radical shift in strategy, has decided not to sell the majority of its “scattered site” properties to private developers and instead will keep properties and issue qualifications to find local developers to build mixed-income communities on the properties. It is my understanding that the Special Applications Center at the Department of Housing and Urban Development (HUD) must approve this plan to go forward. I am concerned HANO does not have sufficient resources to maintain these properties, so I urge your department to not grant HANO approval for their new strategy and instead encourage them to sell these properties as soon as possible without any use conditions attached.

For seven years these properties have sat fallow, depriving the citizens of New Orleans quality affordable housing and property tax revenue. At a time when the City Council is considering proposed property tax increases for the citizens of New Orleans, these properties sit untouched and unused bringing no tax revenue to the city, while they enjoy police and fire protection on the taxpayer dime. Furthermore, selling these properties could net HANO well over $6.8 million, which HANO could then use to fund other developments or to reinvest in its current housing and address the Section 8 housing waiting list.

I am also concerned that this reversal will end up costing the taxpayer a much greater cost then selling the properties now. Will this be the case? Will HUD take into account the cost to the taxpayer in making your decision?

Finally, I am also extremely concerned with the manner in which HANO came to this reversal of their decision. Councilmember-At-Large Stacy Head, of the New Orleans City Council, has been the leading voice on this issue for eight years. She requested to address HANO’s board at their September 4, 2014 meeting regarding these properties, and she was told by the board that, “[t]he evaluation of the scattered site portfolio is ongoing, and until such time as it is completed and vetted by our staff, this will not be a Board agenda item for discussion. We anticipate the vetting process will be completed within the next 3 months and then we will move forward with a recommendation to our Board.” Despite this assurance, no notice was given to Councilmember Head that HANO had completed their analysis and their plan would be announced at HANO’s October 28, 2014 meeting. In fact, by blindsiding Councilmember Head and other interested parties, no one on the Council or any members of the public were able to engage with HANO on this issue, despite the fact that these properties were purchased with Federal tax dollars from HUD.

It is clear to me that HANO’s decision to reverse their strategy in regards to the over 200 surplus site properties has not been completely thought out. HANO has no concrete plan on how to proceed, no financing in place, and worst of all, these units in question are already in a state of disrepair. The community deserves the opportunity to develop these properties and restore parts of their neighborhood that have fallen into disrepair. HANO’s reconsideration of the original plan is haphazard and unfair to the citizens of New Orleans. I urge you to not approve any changes to the current plan to sell the properties without any conditions, and I look forward to your prompt response to my request.

Sincerely

David Vitter
United States Senate