The Multifamily Developer Program was developed to provide tax-exempt bond financing, property tax exemptions (PILOTs) and green infrastructure loans to increase the supply of sustainable affordable housing. The program is also intended to provide the City and Finance New Orleans with local control over affordable housing development.
What is the benefit of receiving PILOTs, and/or Bonds and Tax Credits through Finance New Orleans?
The basic reason affordable housing developers seek property tax relief from the City is to offset the loss in rental income created by offering below market leases to families in need. Finance New Orleans’ PILOT product is structured to meet this basic need while generating a positive return on investment for taxpayers. The process for acquiring a property tax exemption from Finance New Orleans is designed to be fair, transparent and based on predictable market factors. Our primary goal is to stimulate affordable housing development while generating a reasonable market-based financial benefit for taxpayers.
What are the different bond options offered through the Multifamily Developer Program?
The different bond options are Multifamily Housing Bonds, Industrial Development Bonds, as well as 501(c)(3) Bonds. _Multifamily Housing Bonds _allow the developer access to tax-exempt bonds to finance low-income multifamily and senior housing projects. A qualified developer can finance a project at a lower interest rate than available through conventional financing because the interest paid to bondholders is exempt from federal income tax. _Industrial Development Bonds (IDBs), _allow manufacturers to finance projects at a lower interest rate than conventional financing because the interest paid to the bondholders is exempt from federal income tax. And lastly 501(c)(3) Bonds allows any nonprofit organization designated as a 501(c)(3) by the Internal Revenue Service the option to finance a project at a lower interest rate than available through conventional financing because the interest paid to bondholders is exempt from federal income tax.