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April 26, 2010
Contact: Christina Stephens, christina.stephens@la.gov

State Dedicates Additional $9 Million for More Permanent Supportive Housing Units in Piggyback Program for Gustav-Ike Impacted Parishes

BATON ROUGE, La. - The state of Louisiana is dedicating an additional $9 million in disaster recovery funding for the construction of more Permanent Supportive Housing units in the $25 million Piggyback Program now under way to create mixed-income rental developments in parishes recovering from the impacts of the recent storms.

The program add-on, called PSH Plus, will use Community Development Block Grant funds earmarked for eliminating homelessness in Louisiana and be limited to the following parishes: Calcasieu, Cameron, Jefferson, Orleans, Plaquemines, St. Bernard, St. Tammany and Vermilion.

The Piggyback Program awards zero-interest loans to developers who "piggyback" the CDBG money with other funding sources to create mixed-income housing for market-rate and low-to-moderate income tenants, and for the creation of Permanent Supportive Housing units.

The projects may be either new construction or rehabilitation of existing rental housing.

Louisiana Recovery Authority Executive Director Robin Keegan said, "This additional funding will go a long way toward helping reduce the growing incidence of homelessness among our citizens. The PSH model is a national best practice with cost savings that far outweigh the expense of the services."

PSH units are linked to supportive services for vulnerable populations in non-institutional settings, thus reducing emergency room visits and other high-cost health and social service interventions for people with chronic disabilities. Supportive services will be provided by local lead agencies, with funding and oversight from the Louisiana Department of Health and Hospitals. The local lead agencies will receive applications from individuals seeking PSH units and will refer eligible tenants to Piggyback projects.

The Gustav-Ike Piggyback competitive loan program, which requires each project to provide a letter of endorsement from the local government, will allocate funds among the following pools:

  • $10 Million Permanent Supportive Housing Pool: Available for Permanent Supportive Housing projects located in the 53 Gustav-Ike impacted parishes.
  • $9 Million PSH Plus Pool: Available for PSH projects consisting of at least 10 units, with the following additional requirements:
    · Owned by a not-for-profit corporation, by a limited partnership in which a nonprofit corporation is the sole general partner, or by a limited liability company in which a nonprofit corporation is the sole managing member.
    · Located in Calcasieu, Cameron, Jefferson, Orleans, Plaquemines, St. Bernard, St. Tammany and Vermilion parishes.
  • $10 Million Mixed Income Pool A: Available for mixed-income projects in the 10 most impacted parishes: Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, Iberville, Jefferson, Lafourche, St. Mary and Terrebonne.
  • $5 Million Mixed Income Pool B: Available for mixed-income projects located within Gustav-Ike impacted areas, but outside the ten parishes listed in Pool A.
  • General Pool: Remaining funds from Mixed Income Pools A and B will be transferred to this pool after the second round of funding. Permanent Supportive Housing Pool funds will remain within the PSH Pool. PSH-Plus funds will remain within the PSH Plus Pool.

The application deadline for PSH Plus is May 14. The application deadline for the other pools is April 30. Subject to availability of funds, the deadline for a second and third round of funding in all pools will be June 30 and Aug. 31, respectively. Projects must be either mixed-income developments or Permanent Supportive Housing projects.

For mixed-income developments, at least 30 percent of the units must be for market rate tenants, at least 51 percent must be for low and moderate income tenants and at least five percent must be Permanent Supportive Housing.

For Permanent Supportive Housing developments, at least 51 percent of the units must be affordable, and at least 15 percent, but no more than 50 percent, of the units must be PSH. All projects must have a minimum of 30 residential rental units and include PSH units.

The CDBG loans, which mature in 35 years, are to be used solely for gap financing and the hard costs of rehabilitation and construction.

The Gustav-Ike Piggyback Program guidelines are available online at www.lra.louisiana.gov by clicking on the Gustav-Ike tab on the left menu and then scrolling to the Gustav-Ike Piggyback program link. For more information about PSH Plus, please contact thomas.latour@la.gov.

Created in the aftermath of Hurricane Katrina and Hurricane Rita in 2005, the Louisiana Recovery Authority (LRA) is the coordinating and planning body leading the most extensive rebuilding effort in American history. The central point for hurricane recovery in Louisiana, the LRA works closely with the Governor's Office of Homeland Security and Emergency Preparedness (GOHSEP) and partners with state and federal agencies to oversee more than $20 billion worth of programs, speed the pace of rebuilding, remove hurdles and red tape and ensure that Louisiana recovers safer and stronger than before.


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