New Orleans, La.
— New Orleans’ City Council approved Monday a tax break on luxury apartment developments in the city, while rejecting proposals to increase property taxes.
The tax break, approved by a 2-1 vote, would provide incentives for developers to construct affordable housing, and is intended to help finance affordable housing projects in the heart of the city.
It also allows developers to use a portion of the proceeds from a luxury apartment development to help offset property taxes that are due on future taxable properties.
The council voted unanimously to approve the tax break.
Mayor Mitch Landrieu called the proposal “a bold, forward-thinking plan that helps the city continue to be a great place to live.”
The City Council also approved a measure to increase city revenue from property taxes, which could raise up to $20 million a year, to cover affordable housing needs in the City.
The council approved the measure 2-0.
The Tax Credit Program is funded through a 3.5 percent sales tax increase in 2019.
The City and state have also announced a $20-million contribution to help fund affordable housing in the capital region.