HOUSING ADVOCATES OPPOSE PROPOSITION 1:
THE ANTI–AFFORDABLE HOUSING TRUST FUND
New Orleans voters urged to protect the Affordable Housing Trust Fund
by voting NO on Proposition 1 on November 15
The Greater New Orleans Housing Alliance is cautioning voters not to be fooled by proposition 1 on the November 15 ballot. Leaders are trying to change an important ordinance that voters overwhelmingly approved last year.
“Proposition 1 is an attempt to undermine last year’s ballot initiative where voters demanded dedicated revenue in perpetuity for affordable housing,” says Andreanecia Morris, Chairwoman/President of the Greater New Orleans Housing Alliance. “Instead of using the General fund, the proceeds from the bond sale would be used instead. Given the history of the city’s management of these funds, the state of our bond capacity, and the chaos in government, bonds are a risky proposition.
Two serious issues arise: this funding scheme will delay deployment of funds, as the bonds will have to be sold after the state bid commission sets the schedule, and the bond funding won’t cover 15% of the trust fund mechanics—both will short the available funding and undermine a key feature of the Housing Trust Fund: reliability.”
You’ll recall, last year, New Orleans voters overwhelmingly approved the Housing Trust Fund (HTF) Ordinance, which requires the City to make an annual appropriation to equal at least 2% of the City’s General Fund budget beginning in 2026. Under the ordinance and charter amendment, the HTF is dedicated exclusively to the creation and preservation of affordable housing, with transparent oversight and a public dashboard.
What the Housing Trust Fund Ordinance Requires
- The HTF is to be funded via annual budget appropriation, not one-time or debt-based mechanisms.
- The ordinance defines clear priorities for funding towards homeownership, rental & preservation.
- The funding stream must be dependable and recurring to meet the scale of the housing challenge New Orleans is facing.
Related: Katrina’s Shadow Still Haunts New Orleans
Why Bond Sales Conflict Directly with the Requirements
Inherent Uncertainty
Bond sales depend on market conditions, issuance costs, debt capacity, and timing. They do not guarantee a reliable or recurring source of funds. This conflicts with the HTF’s design as a stable, predictable fund through annual appropriations.
Delays in Deployment
The bond issuance process adds bureaucracy that often leads to slower fund availability. The HTF’s purpose is to enable timely investment in affordable housing — delays reduce impact.
Insufficient Funding Capacity
The annual budget model yields a defined minimum of 2% of the city’s operating budget. Even at its maximum proposal, the bond would cover less than 15 percent of the HTF’s expected annual expenses.
Undermines Ordinance Intent and Accountability
Using bonds shifts the funding mechanism away from the annual budget process with City Council oversight. This weakens transparency and accountability built into the ordinance.
The residents of New Orleans — especially low- and moderate-income households — are depending on the HTF for:
- Fortified roofs and weatherization for existing homeowners
- New affordable homeownership units and rental housing opportunities
- Preservation of existing affordable housing inventory
A bond-dependent HTF is unstable, inequitable, and contradicts the city’s commitment to New Orleans voters.
Learn more HERE
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About GNOHA
Since its creation in 2007, GNOHA has sought to create change in the Greater New Orleans community through public policy advocacy and public education. The collaborative advocates for the preservation and production of affordable housing for people within the Greater New Orleans metropolitan region and places a special emphasis on the needs of the most vulnerable in society – seniors, people with disabilities, veterans, low-wage workers and low-income families.