The Apartment Association of Louisiana estimates that of the 45,000 rental units in the metro area, only about 60% were being lived in. But the federal government has a plan that could help both owners and tenants: a 0% silent mortgage for rental property owners with ten or fewer properties.
“A 0% silent mortgage loan means the mortgage sits there on the property, but you don't pay it back until you transfer the property,” said Walter Leger, a member of the Louisiana Recovery Authority.
And if apartment owners decide against transferring their property, they never have to pay it back.
Here's how it works:
--The government will pay $25,000 per unit to property owners who promise to charge fair market value rent, which, before Katrina, was $780 a month.
--They’ll pay $50,000 to charge less in rent and $75,000 if you charge even less. However, those numbers haven't been worked out yet.
Wednesday, July 12, 2006
It's a start
LRA has a plan to get affordable rental property back up and running in New Orleans.
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