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No More Tax Exemptions for Real Estate Developers

Renters have nothing to gain from another handout to developers. A tenants’ union is the way forward.

By Joseph Rosen

Most households in New Orleans are spending more than half of their income in rent. Across the city, the rate of evictions is on the rise. In response, politicians are selling us ‘solutions’ to the housing crisis that are devised by the very people at the root of the problem. Various schemes to ‘reinvest’ in neighborhoods or to provide ‘affordable housing’ all amount to the same thing: handouts to the rich who are intent on pushing out working class, mainly Black New Orleanians.

One scheme—so called “opportunity zones”—has proven to be an enormous windfall for rich investors and real estate developers. This tax loophole was put into effect as part of Trump’s 2017 tax cuts for the rich. Landlord-in-chief Trump who inherited his real estate fortune from his redlining KKK father designated more than 8,000 census tracts across the country as “opportunity zones,” including 25 in Orleans Parish. These cover the Treme, Gentilly, 7th Ward, Gert Town, Algiers, Central City, Magnolia and more—all areas targeted for gentrification.

By stashing money in so called “Opportunity Zone Funds” rich people can skip out on taxes that would otherwise be applied to the profits that they get from their various enterprises. Workers in New Orleans have to pay a 9.45% tax on the purchase of a hot meal while real estate investors can pay as little as a 0% tax on the purchase of an apartment building—all in order to supposedly “spur investment” in areas “of greatest need.” This giveaway has resulted in a massive land grab. Real estate holdings have been consolidated into the hands of fewer and fewer landlords. The New Orleans Redevelopment Fund is an “opportunity zone” tax shelter worth $30,000,000.

Vote no to Constitutional Amendment 4
Big property developers have devised yet another scheme deceptively claiming it will help with affordable housing. An amendment to the Louisiana state constitution would give the city the authority to waive property taxes for investments in “affordable housing” units, exempting properties up to 15 residential units. This amendment does not even specify how the term “affordable housing” would be applied. The city is already rewarding developers of high-end condos with millions in tax exemptions for making as few as 1 out of every 20 units “affordable housing.” Worse, this giveaway increases gentrification by raising rents in the neighborhoods where these expensive new condos are built, forcing more workers out.

To live, workers need to be paid more. To make higher profits, bosses need to pay less. The bosses have the money, the workers have the numbers. The solution makes itself apparent. The same applies to renters. Renters need a real tenants’ movement that can organize for rent control, tenants’ rights and an end to mass evictions.

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Mayor Cantrell’s Affordable Housing Meetings Are a Sham

By Sanashihla

An August 29 meeting in the 9th Ward called by the mayor about the housing crisis was beyond disappointing. One after another city official droned on about proposals mostly benefiting developers, not homeowners or tenants. 9th ward residents were not allowed to speak but merely put a question on a card where the officials could pick and choose. Residents should be allowed to get up at these meetings and the politicians should shut up and listen. What are they afraid of?

Black New Orleanians are being pushed out of homes and apartments all over the city to be replaced by mainly white professionals. The city backs this scheme by granting tax incentives to developers and pursuing code violations that are unimportant but expensive.

The only “relief” offered were loans to fix homes; Mayor Cantrell even threatened homeowners who hadn’t made these repairs. Far from fighting new assessments which are raising taxes in Black neighborhoods like Gentilly or Treme and further pushing people out, Cantrell is actually pushing to get those extra tax dollars out of working class New Orleanians.

When the Residents of Gordon Plaza showed up to the meeting en masse, they were also ignored.

Initially, the mayor didn’t mention anything about Gordon Plaza on her own. It took an audience member’s question/comment card submission for the mayor to mention that the city “might have—but no promises” plots of land that can be considered.

Gordon Plaza was a city initiative, framed as “affordable housing,” promoted toward Black residents as an opportunity, that led to the crisis at Press Park and Gordon Plaza being built on toxic soil in the first place.

The residents are demanding a fully funded relocation, where they can be fairly and justly compensated for their homes in the context of an increased cost of living, increased property taxes, and the fact that their houses could sell for top dollar if the neighborhood that it sits on were not toxic. Cutting checks in the name of the Residents only requires resolve. And considering the Residents of Gordon Plaza are not even seeking restitution for the impact on their health or medical bills associated with living in the second-highest cancer-causing neighborhood in the state of Louisiana, this is a small request.

A fully funded relocation of 52 households would only cost half of what the City of New Orleans spent on installing red and blue flashing surveillance cameras all over the city.

It’s the working-class residents across New Orleans who need the real breaks, not a handful here and there but all. Working class residents can’t keep up with the constant rise in the cost of living, particularly with increases on rent and property taxes.