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Council approves River District pilot to unlock 220 affordable rental units, 6–1
Summary
The New Orleans City Council voted 6–1 to approve a term sheet pilot for the River District 'Ravana' development, a project intended to produce roughly 220 long‑term affordable rental units. Supporters said the pilot is needed to close financing gaps; some council members warned the 40‑year tax pilot reduces city revenue during a budget squeeze.
The New Orleans City Council on Monday approved Resolution R-26-271 to authorize a term sheet for an affordable-housing project in the River District, moving the first phase of the Ravana development forward after a 6–1 vote.
The approved pilot covers a parcel at 1480 Chapatula Street and is meant to enable the construction of about 220 rental units with affordability covenants intended to last 40 years. Developers and housing advocates told the council the pilot is a standard financing tool that makes the deal feasible and preserves long-term rents below market rates.
Terry North, CEO of Providence Community Housing, said the project will produce a mix of income-restricted units and described how tax-credit rules and income-averaging create different AMI tiers. “There’s a 140 that will be at 60% AMI and there are 40 that will be at 80% AMI,” North said, adding that the deal also includes several lower-income units through income averaging and requires multiple layers of subsidy to close the financing gap.
Supporters at the hearing included Enterprise Community Partners and local housing advocates who urged the council to move the project forward. John Sullivan of Enterprise said the financing structure is typical for major affordable-housing deals and that private equity and nonprofit partners have committed capital.
Several council members, however, pressed developers on tenant selection and the fiscal trade-offs of a long-term tax pilot. “Is this gonna generate property taxes or is it not gonna generate property taxes?” a council member asked, seeking a clear explanation for residents who pay full property tax while some parcels receive large exemptions. Terry North replied, “The Ravana project itself will not provide property taxes,” and said the broader River District redevelopment is expected to activate the area economically.
Council President Morrell explained his decision to oppose the pilot, citing the city’s tight budget and the central role of property taxes in municipal revenue: “The most reliable form of revenue for the city is property tax,” he said, urging sponsors to present a clearer, layman‑friendly accounting that shows how the community benefits relative to forgone taxes.
After debate, the council adopted the pilot 6–1. The resolution is a required step for this phase of the River District financing; sponsors said construction and closing steps will follow once the pilot and associated financing documents are finalized.
The council scheduled an executive-session recess after the vote and did not set a date for final construction permits. Proponents said the pilot unlocks financing the project’s developers cannot otherwise attract, while opponents urged clearer public accounting of long-term fiscal trade-offs.
