N.O. to Provide Assistance to Small Landlords Impacted by COVID-19
NEW ORLEANS — The City of New Orleans announced it has set aside $1.5 million to provide mortgage assistance to small landlords owning eight or fewer rental units and whose rental income has been impacted by the COVID-19 pandemic.
“At the start of the pandemic, we quickly recognized the impact that loss of revenue and income would have on renters facing eviction, and we worked to provide as much support as possible. Our combined efforts have provided nearly $9 million in rental relief. But there’s another side to this crisis, which is why we stand ready to support those small landlords who are as imperiled by this crisis as their tenants. We will provide grants of up to $15,000 per landlord to bring mortgages current. This is just one more tool we are using to address an affordable housing crisis exacerbated by the pandemic,” said Mayor LaToya Cantrell.
“None of us asked for this pandemic and it has had a tremendous negative financial impact. The economic losses have not only affected renters but many small ‘mom and pop’ landlords throughout our community. Rent and evictions were suspended but mortgages, maintenance, insurance and taxes were not,” said Jay H. Banks, District B City Councilmember and Chair of the Community Development Committee. “This landlord support program is hopefully just one of many steps that we will take to help bring some relief to members of our community who through no fault of their own are desperately struggling.”
Applicants for the Small Landlord Emergency Grant Program will be required to provide documentation of their hardship and inability to make mortgage payments. The program will begin with $1.5 million, and may be increased as more funding becomes available. The fund is expected to assist at least 100 landlords and stabilize housing for between 500 and 700 households depending on the award amounts.
Other guidelines include:
- The applicant must be the primary owner and the applicant’s property must not be a seasonal or short-term rental.
- The rent must be considered current by the landlord after receipt of the grant payment.
- An awarded landlord must agree not to evict current tenants through Jan. 31, 2021, or seek repayment of past due rent for the months that mortgage assistance is paid by the SLEG Program. Should a unit become vacant, the unit must be rented within 30 days to an 80% or below AMI household through Jan. 31, 2021.
- Landlords will be required to certify the extent of loss revenue and their inability to make mortgage payments. Funding to landlords will be limited to rental units with the City of New Orleans addresses.
To apply, residents should call the Mayor’s Office of Community Development at 504-658-4200.