Target Areas 

The target areas for this program prioritizes areas designated as stronger-market neighborhoods by the New Orleans Market Value Analysis requirement that all funds must affirmatively further fair housing. 

NORA reserves the right to expand eligible target areas to include additional underserved or priority neighborhoods within the City of New Orleans, as determined by program needs, funding availability, and consistency with adopted housing and community development priorities.

 Eligible Properties 

NORA will provide a current list of eligible vacant properties as an attachment to the applicable Funding Opportunity in NORA's WebGrants portal. The property inventory will consist of vacant lots located within designated target areas of New Orleans and available for redevelopment through the Homeownership Expansion and Resilience Opportunities (HERO). Only applicants in good standing with NORA will be eligible to receive property awards under this solicitation. Applicants are responsible for reviewing the most current property inventory posted with the Funding Opportunity.

NORA properties: 

• Will be sold at 10% of appraised value or $4,000, whichever is greater. 

• Must be developed for households earning ≤100% of Area Median Income (AMI)  

All constructed residential units must:  

• Meet applicable state and local building codes, permitting, and construction requirements 

• Achieve Energy Star ® certification consistent with the most current applicable version in effect at the time of construction 

• Comply with FORTIFIED Gold construction standards in accordance with the most current applicable version, where applicable 

• Adhere to NORA’s Hazard Resilience Standards, consistent with the most current applicable version

Click here to view the property map. 

Click here for a full list of properties.

Applicants that apply with a property they currently own must have a minimum of 20% developer equity in the project, inclusive of the HERO loan. You may not borrow more than 80% of total development cost including the HERO loan. The property must be free of tax liens, judgments, code violations and other such encumbrances.

Under HERO, New Orleans Redevelopment Authority will utilize HTF funds to provide construction financing and related subsidy assistance for the development of affordable housing units benefiting households up to 100% AMI.

NORA is authorized to carry out eligible housing activities utilizing HTF funds. As NORA’s affiliated nonprofit development entity, NORA may administer construction financing, subsidy assistance, acquisition, redevelopment and other eligible affordable housing activities designed to support neighborhood revitalization objectives.

NORA may retain revenue generated from lending activities, including but not limited to interest earnings and principal payments, and other related proceeds, to support the continued operation and expansion for the construction lending program. Revenue received from the sale or resale of housing constructed under HERO as a result of carrying out eligible activities will be retained for the specific purpose of creating revolving loan funds to continue the construction lending program activity.

Developer Eligibility

Individuals, non-profit, and for-profit entities are eligible to apply as a developer in this program. Applicants must:

• Demonstrate financial feasibility, capacity and repayment ability
• Demonstrate organizational experience and capacity to complete the project
• Be in good standing with the City of New Orleans and have no outstanding debts with the City of New Orleans 
• Be listed as Active and In Good Standing with the Louisiana Secretary of State
• Be in good standing with the City’s Office of Code Enforcement
• Not be encumbered with outstanding ad valorem taxes or municipal lien violations at the time of application and closing
• Not be in violation or default of any other NORA program at the time of application or closing
• Not be debarred, suspended, or otherwise excluded from receiving government funding

Eligible Uses 

Financing is available to support the redevelopment and construction of scattered-site, for-sale residential housing on properties acquired through this program.  

Eligible costs shall be limited to approved redevelopment and construction expenses consistent with approved project budgets. All funds are disbursed on a reimbursement basis only, and applicants must maintain accurate and complete documentation of all project expenditures. Therefore, developers must have the capacity to maintain detailed documentation and accurate accounting of all project expenditures, as well as final “actual” development costs for each property constructed

HERO funds may be utilized for eligible housing activities including, but not limited to:  

Hard Costs  

• New construction of single-family housing units

• Site preparation and infrastructure directly related to housing

• Construction labor and materials  

Soft Costs (Maximum 10%)

• Architectural and Engineering services

• Plans and specifications

• Required Inspections and permits

• Appraisals (excluding Market Studies)

• Fire Marshal fees and City Agency permitting Fees related to construction/permit fees to the City Agencies

• Construction Management   

Insurance & Project Costs 

• Builder’s Risk Insurance

• Property Insurance during and after construction 

Homebuyer Assistance (if needed to ensure affordability)  

• Down payment assistance

• Closing Cost assistance

• Gap financing 

All required forms and detailed budget items are provided within the WebGrants funding opportunity and must be completed and uploaded as part of the application. 

Ineligible Uses 

Rental housing development is not an eligible activity for the use of these funds.  

Funds may not be used for:

• Acquisition of real property or land 

• Refinancing of existing or new debt or reimbursement of previously incurred project costs 

• Payment of any delinquent taxes, arrearages, liens, judgements  

• Payment of governmental fines or penalties 

• Buyout any stockholder or equity holder in a business entity 

• Purchase of financial instruments intended for the sole purpose of return on investment  

• Any other activity determined by NORA to be ineligible or not compliant with applicable regulations. 

The program will provide construction financing to qualified developers to support the development of affordable housing units. Financing is structured as a low-interest construction loan designed to cover the gap between Total Development Cost (TDC) and the final sales price of the housing unit. The final sales price of each completed home sold to a Qualified Homebuyer must be priced within ten percent (10%) of the appraised value. Community Land Trusts must sell within 10% of the appraised value of the improvements, which is calculated independently of the underlying land cost.

Loan Structure

• Loans are issued on a per-property basis

• Maximum loan amount: $100,000 per property

• A minimum of $10,000 must be repaid to NORA

Developers will execute all required loan documents prior to closing and the commencement of construction.

Subsidy Structure 

Loan forgiveness is structured as a sum of developer/project subsidy and homebuyer subsidy, subject to the following limits:

• A maximum of $80,000 of the loan may be forgiven as Developer/Project Subsidy, based on documented need and project financing gap.

• Up to $70,000 may be provided to a qualified Homebuyer as a Homebuyer Subsidy, based on documented need. The Developer must reserve a minimum of $10,000 for the Homebuyer Subsidy.

• Homebuyer subsidy will be provided in the form of a Soft Second Mortgage

• For projects utilizing a Community Land Trust (CLT) model, given CLTs affordability requirements for all subsequent buyers of the home, affordability subsidies are incorporated into the project’s development costs rather than provided as an individual subsidy to the homebuyer. The $10,000 reservation for homebuyer subsidy will not apply for CLT properties, provided the homebuyer does not need it. Up to $90,000 in loan forgiveness may be allocated to the developer subsidy, subject to all other program requirements and the maximum total forgiveness limit remains at $90,000.

• The combined total of developer/project subsidy and homebuyer subsidy may not exceed $90,000 per property.

Repayment of Unused Funds 

Any portion of the loan not applied as subsidy must be repaid to NORA, in accordance with loan terms. 

Homebuyer Eligibility

Homebuyers must meet the following eligibility requirements:

• Have a household income at or below 100% AMI, based on the most recent limits published by HUD. Income eligibility will be determined based on the income of all household members in accordance with NORA income verification standards.

• Qualify for first mortgage financing

• Agree to occupy the house as their primary residence throughout the applicable Affordability Period which shall be defined by the affordability provisions detailed in a Promissory Note and a Declaration of Covenants and Restrictions.

• Not have had an ownership interest in a principal residence during the 3-year period ending on the date of purchase of the property. 

• Not own more than 50% interest in any other residential property at the time of closing

Homeownership under this program is not restricted to first-time homebuyers, but eligible homebuyers may not own more than 50% interest in any other home at the time of closing.

Homebuyer Assistance & Financing Coordination

Homebuyers are eligible to apply for and receive Soft Second funds from City of New Orleans programs. If the buyer is approved for both, NORA will subordinate its lien position to the City’s loan through an Act of Subordination, subject to approval.

Developer Responsibilities for Homebuyer Identification

Developers are responsible for:

• Marketing homes to income-eligible homebuyers and Good Neighbors

• Ensuring that all buyers meet program eligibility requirements

• Coordinating with real estate professionals (agents) and program partners to identify qualified purchasers

Developers must model their projects to target households at or below 100% AMI. Developers must demonstrate, through their application, a clear and feasible strategy for identifying and securing qualified homebuyers.

First Look for “Good Neighbors” - Priority Marketing

To support neighborhood stability and community investment, developers must prioritize marketing to

“Good Neighbors” before all other buyers during the initial marketing period.

• For the first 30 days of marketing, properties may only be placed under contract with buyers who meet both:

• The definition of a Qualified Homebuyer, and

• The definition of a Good Neighbor

• “Good Neighbors” include households with at least one member employed as:

• A law enforcement officer (with the ability to make arrests for violations of federal, state, or local laws)

• A pre-kindergarten through 12th-grade teacher

• A firefighter

• An emergency medical technician (EMT)