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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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Stop Caging Workers!

Photo: Christina Tareq

On Friday, September 27, dozens of hospitality workers and supporters gathered in Congo Square for a Workers Unity Rally called by the New Orleans Hospitality Workers Alliance. Organizers stressed the urgent need for workers to resist police and ICE terror in the workplace. Speakers included Eugene Grant of the Slow Rollas Brass Band who spoke on behalf of street musicians who have been targeted for harassment by the police who take their orders from gentrifiers and real estate developers. From Congo Square demonstrators marched through the French Quarter, calling on their fellow workers to come together to fend off cops and ICE agents who are attacking workers on behalf of greedy, racist bosses. Demonstrators chanted “Lift the wages, no more cages!” Grant summed up the attitude of the marching workers best, chanting “We gotta fight to get it!”

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Halt Property Tax Increase

Real Estate Tax Hikes = Evictions for Black Homeowners

Mayor Cantrell issues a new press release daily praising new programs. Working class New Orleanians, especially the Black community, need to ask ourselves a few questions. Is my situation today better or worse? Have my rents, taxes, utility bills gone down? Has my income gone up? No! The main policy of the city is to displace New Orleans communities to make way for the high paid, mostly white yuppies who are moving here. Black music, food and traditions draw tourism bucks but communities aren’t seeing any benefits from it. The government proves once again that it works for the capitalists, not the people.

Despite the Sewerage & Water Board illegally squandering tens of millions of dollars, not one former Board member has gone to jail—even worse, they’re collecting huge pensions on our dime. The S&WB gives out huge profit-making contracts with no accountability. Meanwhile, the S&WB workers’ jobs have only been getting harder and more terrible.

A new Board has been appointed headed by Neil Abramson, a major Cantrell backer, who works with real estate developers and who pushed through the destruction of public community education in favor of charter profiteering. The new Board is mainly made up of millionaires. Like before, the City Council, with all their contributions from big business, tries to pretend they have no role and can do nothing. So whose interest are they really representing? Now they want us to pay for higher bills with a new drainage fee on the October ballot.

In 1999 a new fee and higher rates increased bills by 50%. Thousands are still struggling with the robbery the S&WB carried out with false high bills. A fee is a pretty word for a tax, and we cannot afford another expense coming out of our stagnant or falling incomes. We need an elected S&WB run by working class people, not the robber barons.

VOTE NO TO NEW DRAINAGE FEE
NEW TAX ASSESSMENTS are ANOTHER WAY TO GENTRIFY

RACIST REAL ESTATE VULTURES RESPONSIBLE, GOVERNMENT AIDS THEM

The new tax assessments, some 50% higher, are pushing thousands of working class and middle-class homeowners into foreclosure and eviction. This is a crisis for those on social security, pensions, and disability especially, but with low wages and no raises this is devastating. Taxes and insurance are swallowing incomes up, and this crime is abetted by government officials—city and state—who are owned by the developers and insurance industries.

Many Black communities like Treme are barely recognizable as rents and home prices and new taxes are driving Black people out. Hospitality workers can no longer afford to live in areas close to the Quarter or CBD. Gentilly homes are now selling for $350,000 because that’s what real estate vultures charge. So, based on that, long-time homeowners are seeing their homes that were purchased for $80,000 reassessed for higher amounts, regardless even of condition.

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The Craige Cultural Center Fights to Stay Alive

By Michael “Quess?” Moore

One of the least considered, yet most divisive aspects of gentrification is the way it splits communities and pits folks against each other. Quite often this rift results from the mad scramble for dwindling resources in communities under siege by hyper capitalist agendas. Here in New Orleans, we’ve watched public housing transition to “mixed income” housing as the black middle class and a mostly black City Council looked on apathetically displacing their own people. We’ve watched the education system sold off to the highest bidder in the mad rush to privatize schools into charters. And amidst it all, we’ve watched our community institutions get sold from under our feet while we looked on seemingly unable to do anything about it.

The Craige Cultural Center at 1800 Newton St. on the Westbank is one such institution. For 43 years, the community center has served as a hub for black folks on the Westbank (and beyond) to receive community services ranging from chiropractic treatment (the founder was a doctor), to job training (i.e. IT training), to GED Prep, to cultural education events featuring renowned African scholars like Anthony Browder and Professor James Smalls as well as several renowned locals poets, singers, rappers and artists. Founded by Thomas Craige and Loyce V. Craige in 1974, the center has been managed by their two sons Vince and Todd for the last 14 years.

On July 26, 2018, the center was sold behind the owners’ backs in a sheriff sale only hours after a temporary restraining order and only minutes after a preliminary injunction had been issued to have any potential sale stopped. This backdoor deal culminated a year and a half process of shady dealing in attempts to sell the property against the owners’ will. According to the lead curator of the space, Vince Craige, “They must rescind the sale due to negligence and investigate how this horrendous act could have occurred as the injured party had two judges signatures and a court date. The Craige Center could very well be victims of an orchestrated land grab.”

A rally attended by some 100 community members was held on August 3to support the Craige brothers’ center and promote their court date that took place on August 8, Vince’s birthday. The rally ended with the son of the black woman that purchased the center behind the Craige’s backs, making a case for why he deemed his mother’s greedy capitalist land grab to be justified. To follow and support the campaign to “Rescind the Sale!” and keep the Craige Center alive, follow them on Facebook on the Craige Cultural Center page. And most importantly, come out to their court date on September 5 at 1:30pm at Civil District Court at 421 Loyola Ave. Section J, New Orleans, LA 70114. This could be the difference between losing or keeping a cultural institution. COME THROUGH!