The AFL-CIO plans to invest $700 million in housing and other projects to help rebuild this city left staggered by housing shortages and other infrastructure problems after Hurricane Katrina.
The money will come from the union federation's pension fund and its lenders -- investments that should make money for the fund while aiding a city left hobbled by the enormous disaster, said AFL-CIO president John Sweeney in an interview Tuesday. It also will create union jobs in a region with an enormous number of construction projects.
"I was horrified that so little has been done," said Sweeney, who last visited New Orleans about a month ago and saw tracts of housing left in ruin since Katrina struck Aug. 29.
"It feels like it's the city that America forgot."
The investment plan includes $250 million in financing for housing construction over the next seven years, with more than 5,000 rental units expected to be built. Another $100 million will be equity investments for commercial real estate and revitalization projects.
The AFL-CIO already has applied to get title on 200 properties controlled by the city because owners failed to pay taxes on them. Most are in the Treme neighborhood, a predominantly black working-class neighborhood adjoining the French Quarter.
Another $250 million has been set aside for home mortgages for city employees, union members and residents of neighborhoods where AFL-CIO projects will be located.
Up to $100 million will be used to finance hospitals or nursing homes, using federally insured loans.
"Hopefully, it will jump-start some investment" from other private entities, Sweeney said.
The investment plans are similar to ones the union has executed in Chicago and New York. The AFL-CIO created a $750 million investment program in Chicago last year, mainly targeting affordable housing, and one in New York after the Sept. 11 terrorist attacks.
Finally something to be in a good mood about. We need more of this and less condo-ization.
Update: More here
Some developers are worried that because of tax incentives, there will be too much affordable housing and not enough mixed income developments.Remember, kids, anything Pres Kabakoff hates is bound to be good for New Orleans.
"You can overload the city with affordable housing," local developer Pres Kabakoff says. "It's important we don't end up with concentratedly poor neighborhoods."
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