News Summary
New Orleans is allocating $2 million from the American Rescue Plan to assist low- to moderate-income homeowners facing financial hardships. The funds will support those struggling with mortgage payments, flood insurance, and property taxes. A single organization will administer the program for 14 months. Information sessions for potential administrators will be held in mid-September. This initiative aims to address ongoing economic challenges following COVID-19 and natural disasters, while also ensuring transparency in fund management.
New Orleans has announced the allocation of $2 million in funds from the American Rescue Plan Act (ARPA) to assist low- to moderate-income homeowners who are currently facing financial difficulties. This initiative aims to provide necessary support to eligible homeowners struggling with outstanding mortgage payments, escrow balances for flood insurance, and property taxes.
The allocated funds will be managed by a single organization selected to administer the mortgage relief program through a grant period of 14 months, concluding by December 31, 2025. Organizations interested in overseeing this program are required to respond to the Notice of Funding Availability (NOFA) before the deadline of October 1, 2023.
Information sessions have been organized to aid interested organizations in understanding the application process. These sessions will take place at two Crescent City Farmers Market locations on September 17 and 19, 2023. It is important to note that this funding is exclusively available to homeowners whose primary residence is located in Orleans Parish.
Eligibility Criteria and Purpose
The primary focus of this funding initiative is to aid homeowners who have experienced qualifying financial hardships due to the COVID-19 pandemic or other natural disasters. This support is considered crucial as many residents continue to struggle with financial recovery and stability amidst ongoing economic challenges.
Call for Transparency and Accountability
In conjunction with the announcement of these funds, there is an ongoing demand from local government leaders and community residents for increased transparency and accountability concerning the management of ARPA funds. Recent criticisms have been directed toward the city’s handling of federal funds, particularly concerning delays and a perceived lack of progress in spending ARPA allocations effectively on vital projects.
Current Spending Status
As of the third quarter of 2023, New Orleans has reported that it has spent or obligated approximately 80.2% of its allocated ARPA funds, totaling around $310.7 million. The city is tasked with utilizing ARPA resources on designated projects and is obligated to adhere to federal regulations regarding the appropriate use of these funds. City officials are committed to ensuring that the funds are obligated by the deadline of December 31, 2024, with a goal of fully expending the money by December 31, 2026.
Conclusion
The $2 million funding initiative for assisting struggling homeowners reflects the city’s efforts to address economic hardship exacerbated by recent crises. By supporting vulnerable homeowners, New Orleans aims to foster greater financial stability within its communities, while ensuring compliance with federal funding rules and responding to the demands for better management of financial resources.
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Additional Resources
- WWLTV: New Orleans Announces $2 Million ARPA Fund for Homeowners
- Wikipedia: American Rescue Plan Act of 2021
- WDSU: Louisiana Senator on New Orleans Funding
- Google Search: American Rescue Plan
- NOLA: Bogalusa Misusing ARPA Funds
- Encyclopedia Britannica: Coronavirus Disease 2019
- WWLTV: $2M in ARPA Funding for Homeowners in New Orleans
- Google News: ARPA Funding
- LA Illuminator: Louisiana’s Federal Broadband Projects under ARPA
- Google Scholar: Financial Aid Homeowners
- Fierce Biotech: White House ARPA-H Awards for Cancer Surgery
- Google Search: Financial Aid News
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
