Program Overview
The New Orleans Housing Investment Program (NOHIP) is a strategic affordable homeownership initiative designed to support the development of quality affordable, housing opportunities. In NOHIP, NORA-owned properties are made available to qualified development teams at a discounted rate in exchange for their commitment to sell completed homes to buyers with household incomes at or below 80% of Area Median Income (AMI). NOHIP is designed to: Address the communities’ shortage of affordable homeownership opportunities in the City of New Orleans Promote neighborhood stabilization and reinvestment in underserved communities Expand wealth-building opportunities for Low-to-Moderate Income (LMI) households through sustainable homeownership The program promotes long-term sustainability by: Creating permanent affordable homeownership opportunities Leveraging private first mortgage financing and other public and private investment sources; and Recycling CDBG Program Income through loan repayments and resale proceeds to support future housing activities Separately, and to support project feasibility and affordability, New Orleans Redevelopment Unlimited (NORU), NORA’s affiliated nonprofit lending entity, will offer construction loans during the construction period as wellas project subsidy assistance to cover any funding gaps that exist between the total development cost of the project and the final sales price of the home. Funds are also made available directly to homebuyers to bridge affordability gaps that may exist between their first mortgage financing and the final sales price of the homes. Application window: June 29, 2026 - July 29, 2026
Target Areas Central City New Orleans East Seventh Ward 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 New Orleans Housing Investment Program (NOHIP). Only applicants in good standing with New Orleans Redevelopment Unlimited, Inc. (NORU) 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. All properties: Must be owned by NORA Will be sold at 10% of appraised value or $4,000, whichever is greater. Must be developed for households earning ≤80% 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 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
Eligible Activity Under NOHIP, New Orleans Redevelopment Unlimited (NORU) will utilize CDBG funds, including program income, to provide construction financing and related subsidy assistance for the development of affordable housing units benefiting low- to moderate-income (LMI) households. This activity qualifies as an eligible housing activity under 24 CFR 570.201, specifically for affordable development and homeownership activities. NORU has been designated by the State of Louisiana as an eligible entity pursuant to Section 105(a)(15) of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5305(a)(15)). Under this designation, NORU is authorized to carry out eligible housing and community development activities utilizing CDBG funds and CDBG PI. As NORA’s affiliated nonprofit development entity, NORU may administer construction financing, subsidy assistance, acquisition, redevelopment and other eligible affordable housing activities designed to benefit low and moderate households and support neighborhood revitalization objectives. NORU 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 NOHIP as a result of carrying out activities authorized under Section 105(a)(15) is not considered CDBG Program Income for purposes of the federal program requirements and revenue proceeds will be retained for the specific purpose of creating revolving loan funds to continue the construction lending program activity. Applicant Eligibility Individuals, non-profit, and for-profit entities are eligible to apply as a developer in this program. Applicants must: Be in good standing with the City of New Orleans and have no outstanding debts Be listed as Active and In Good Standing with the Louisiana Secretary of State Be eligible to receive federal assistance and must not be debarred or suspended from participating in federally funded contracts Demonstrate experience and capacity to complete the development of lots that will be sold to Qualified Homebuyers after construction completion. Demonstrate project strength and financial feasibility Demonstrate repayment ability Demonstrate community impact within the selected target areas
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 CDBG-PI 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 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 ineligible by NORU or HUD to be ineligible or not compliant with applicable federal regulations.
Award and Loan Structure 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. Loan Structure Loans are issued on a per-property basis Maximum loan amount: up to $120,000 per property A minimum of $20,000 per property must be repaid to NORU Up to $100,000 of loan principal may be forgiven by NORU as a combination of developer/project and homebuyer subsidy The NORU loan shall never exceed $120,000 per property. Loans are committed prior to construction. Developers are required to execute a Promissory Note for each approved project (and applicable construction phase, if structured in phases) and all associated loan documents prior to disbursement. Subsidy Structure Loan forgiveness may be provided as a combination of developer/project subsidy and homebuyer subsidy, and is subject to project underwriting, subsidy layering review/need, execution of a written loan agreement, achievement of eligible housing and affordability outcomes, and compliance with program requirements: 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 $60,000 may be provided to a qualified Homebuyer as a Homebuyer Subsidy, based on documented need. The Developer must reserve a minimum of $20,000 for the Homebuyer Subsidy. Homebuyer subsidy will be provided in the form of a Soft Second Mortgage The combined total subsidy shall not exceed $100,000 per property. The combined total of developer/project subsidy and homebuyer subsidy may not exceed $100,000 per property. Homebuyer Subsidy: Must be provided in the form of a Soft Second Mortgage Must be committed to writing prior to marketing the home. This commitment will require a form attached when submitting the Notice to Proceed Form Requires a minimum of $20,000 must be reserved for homebuyer assistance Additional requirements: All homebuyer subsidy must be committed in writing prior to marketing with an “up to” amount that they are willing to let their, if the amount changes then developer shall submit a request change form Combined subsidy (developer + homebuyer) may not exceed $100,000 Repayment of Unused Funds Any portion of the loan not applied as subsidy must be repaid to NORU, in accordance with loan terms.
Homebuyer Eligibility Homebuyers must meet the following eligibility requirements: Have a household income at or below 80% 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 NORU income verification standards. Complete HUD-approved homebuyer counseling (minimum of eight (8) hours) through a HUD-approved agency. A list of HUD approved counseling agencies can be found here: https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm 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 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, NORU 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 80% 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)
Federal Program Requirements NOHIP and all selected applicants, developers, contractors and/or subrecipients must comply with all applicable federal requirements associated with the Community Development Block Grant (CDBG), including but not limited to the following: National Objective Compliance Eligibility Requirements Environmental Review Requirements Uniform Relocation Assistance and Real Property Acquisition Policies (URA) Davis Bacon and Related Acts, as applicable Section 3 Requirements Fair Housing and Equal Opportunity Requirements Conflict of Interest Requirements Procurement Standards Financial Management and Recordkeeping Requirements Affirmative Marketing and Homebuyer Eligibility Requirements Eligible to participate in federally funded contracts (Systems for Award Management (SAM)) The full list of CDBG applicable provisions shall be attached to the policy document, solicitations and all contracts associated with the NOHIP Program. Failure to comply with applicable federal requirements may result in suspension of funding, repayment of funds, termination form the program, or other remedies permitted by law, NORA and NORU. For details on provisions and requirements for the federal requirements listed above, please review the NOHIP Policies and Procedures. Compliance with Applicable Laws Any work completed pursuant to the New Orleans Housing Investment Program shall be governed and/or construed in accordance with the laws and jurisprudence of the State of Louisiana. At the time of applicant’s submission of its proposal and throughout the project, the applicant must be compliant with all applicable laws of the State of Louisiana, the United States, and local ordinances, including licensure and regulatory requirements. Licensed Contractor Requirements All work must be completed by contractors licensed in accordance with the State of Louisiana Contractors Licensing Law and Rules and Regulations, LA R.S. 37:2150 – 2165, and must be bonded, legally operating in the City of New Orleans. The applicant and contractor are responsible for obtaining necessary building and site permits for all work. The contractor will obtain and pay for all required permits, contractor’s licenses and all required fees and taxes. Additionally, the contractor must carry comprehensive general liability insurance, automobile liability insurance and workers’ compensation coverage at statutory limits, with minimum limits of $500,000 per occurrence and $1,000,000 in the aggregate. NORA will be named as an additional insured unless otherwise determined. Contractors are also encouraged to hire disadvantaged business enterprises (DBE).
Request for Applications NORA, in partnership with New Orleans Redevelopment Unlimited, Inc. (“NORU”), will issue a Request for Applications (RFA) to solicit applications from experienced and qualified applicants for participation in the program to develop and sell completed homes to qualified buyers with household incomes at or below 80% of Area Median Income (AMI). The RFA will: Outline policies, procedures, and requirements governing the allocation of funds Establish eligibility criteria and submission requirements Provide guidance for applicants seeking funding under the program An information session will be conducted during the RFA response period to provide an overview of the program and application requirements. Application Process Overview All applications must be submitted electronically through NORA’s WebGrants portal Applicants are required to: Register for a new account within WebGrants Complete all required application fields Upload all required supporting documentation Applications submitted outside of WebGrants will not be accepted. Incomplete applications may not be considered for funding. Applicants are strongly encouraged to review all program guidelines and requirements included in this RFA prior to submission. Application Evaluation All applications submitted by the stated deadline will be evaluated by NORA and NORU staff based on the following criteria: Experience & Capacity Project Strength Repayment Ability Community Impact and Capacity Building NORA and NORU will conduct a comprehensive review of each application to assess overall project feasibility, including but not limited to: Development budgets and cost assumptions Sources and uses of funds Financing gaps and subsidy needs Development team capacity and readiness Applicants are responsible for ensuring that all submitted information, including budgets, cost estimates, and supporting documentation, is accurate, complete, and consistent with program requirements. General Reservation of Rights NORA reserves the right to cancel any solicitations and accept or reject, in whole or in part, any proposals for any reason. NORA also retains the right to reopen this solicitation for subsequent phases or to redevelop the properties by other means. Submission of an application does not constitute a commitment of funding. Selection, Board Approval, and Award Letter Following the Evaluation Committee’s review and scoring of all submitted applications, the Committee will rank proposals and make funding recommendations based on the established evaluation criteria (maximum score of 100 points). Board Approval Recommended board applications are subject to approval by the governing boards of New Orleans Redevelopment Authority (NORA) and/or New Orleans Redevelopment Unlimited, Inc. (NORU) as applicable. No awards shall be considered final until all required board approvals have been obtained. Award Notification Upon receipt of all required approvals, NORA will issue an Award Letter to selected applicants. Applicants that are not selected will receive a Denial Letter outlining the reason(s) for non-selection. Reasons for non-selection may include, but are not limited to: ineligible applicant(s) submitting an incomplete application lower evaluation ranking based on the Evaluation Committee’s scoring
Register for the NOHIP Information Session An informational session meeting will be held, on July 8, 2026, from 1:30 to 3:00 p.m. (Central Time). The session will be conducted virtually. Participation is encouraged but not required. During the session, NORA staff will: Provide an overview of the program Review application requirements Answer questions from prospective applicants A recording of the session will be made available on NORA’s website following the meeting.
Contact Information
Don Lapeyrolerie Housing Program Manager This email address is being protected from spambots. You need JavaScript enabled to view it. 504-658-4431 Jocelyn Henriquez-Reyes Project Coordinator This email address is being protected from spambots. You need JavaScript enabled to view it. 504-658-4436
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