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Rental Property Owners Encouraged To Apply To The Road Home Small Rental Property Program

BATON ROUGE, La., January 29, 2007 – Today, The Road Home launches its Small Rental Property program, providing incentives to encourage property owners to rebuild much needed affordable rental housing. The program is considered essential to the return of Louisiana residents still displaced by the hurricanes.  

Before the storms, many low- and moderate-income working families lived in single-family homes, doubles, and small multi-unit buildings. For the most part, these were owned and operated by small-scale rental property owners. Through a series of competitive application rounds, The Road Home rentalprogram will provide incentives as forgivable loans that are forgiven in stages over time. By providing an incentive for owners to rebuild their rental properties and requiring them to keep rents affordable, the Small Rental Property program is helping bring back reasonably priced rental properties in the most storm damaged areas.

“There is a great need for affordable rental options for our residents. By providing incentives to owners of rental properties, we are rebuilding our neighborhoods and offering housing options that people can actually afford,” stated Calvin Parker of the Office of Community Development.

The program will offer awards through a series of competitive application rounds to ensure incentives are available to those owners who need it most. This initial round is targeted towards small-scale owners with up to 20 rental units. Larger property owners will be given an opportunity to apply in later rounds, but the program will continue to prioritize small-scale applicants. The amount of the incentive an owner may receive will depend on the affordability of rents the property owner is willing to charge.  Owner occupants of three- and four-unit properties are strongly encouraged to apply.

Starting today, applications for small-scale and owner-occupant property owners are available for Round 1 of the program. This first round will remain open and accepting applications until March 15, 2007.

Some of the funding has been specified for nonprofit organizations offering a longer term affordability and supportive housing. These applications will be available starting February 12 through March 22.

To be eligible, applicants must have owned a one- to four-unit rental property located in one of the 13 parishes hardest hit by the storms: Acadia, Calcasieu, Cameron, Iberia, Jefferson, Orleans, Plaquemines, St. Bernard, St. Tammany, Tangipahoa, Terrebonne, Vermilion and Washington. All eligibility criteria can be found online at www.road2LA.org/rental or by calling The Road Home call center at 1.888.ROAD.2.LA (1.888.762.3252). TTY callers use 711 relay or 1.800.846.5277.

An application can be requested by calling 1.888.ROAD.2.LA or visiting www.road2LA.org.  Completed applications should be mailed to P.O. Box 4729, Baton Rouge, LA 70821-1182. If an applicant is unable to complete an application in time for the Round 1 deadline, they are encouraged to apply in a later application round. There will be multiple rounds of funding with Round 2 opening in late April.

Last fall, the State launched a separate program to spur development of mixed-income and low-income housing through tax incentives and grants. The Low Income Housing Tax Credit (LIHTC) program is expected to spur private investment in more than 15,000 rental units, including 5,000 units in a mixed-income setting. This development will add to the construction boom and help address a post-storm shortage of affordable rental properties.

The Road Home program is designed to help Louisiana residents affected by Hurricane Katrina or Rita get back into their homes as quickly and fairly as possible. Working together, Governor Kathleen Babineaux Blanco, the Louisiana Recovery Authority, the Office of Community Development and the Louisiana Legislature created The Small Rental Property program. The program, designed for one- to four-unit rental properties, provides incentives to owners offering affordable work force rental housing for returning residents. 

For more information on The Small Rental Property program or to request an application, visit www.road2LA.org/rental or call 1.888.ROAD.2.LA (1.888.762.3252). TTY callers use 711 relay or 1.800.846.5277.

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