Louisiana’s affordable housing dollars redirected to storm-proof roofs

Louisiana has found more money to allow homeowners to upgrade their roofs to withstand hurricanes, but it will come at the cost of affordable housing.

Gov. Jeff Landry confirmed Monday that $20 million in federal funds earmarked for affordable housing across the state will instead go toward fortified roof improvements. Insurance Commissioner and state Sen. Kirk Talbot, R-River Ridge, who chairs the Senate Insurance Committee, joined the governor Monday for the announcement at the insurance department.

The money comes from the Piggyback Resilience Initiative Mixed-Income (PRIME) program, administered by the Louisiana Housing Corp., the state agency that handles federal and state housing assistance. PRIME funding has previously been used to help build more than 4,100 apartments in the state.

When asked why the affordable housing money is being redirected, the governor said reducing insurance costs with fortified roofs was a top priority. 

“There are many other programs under which we can get affordable apartments,” said Landry. “When we start employing that money in a fortified roof program, we start to reduce the overall premiums in that area.”

So far this year, the state has committed $100 million toward subsidizing roof improvements. The Louisiana Legislature appropriated $30 million this spring, and the insurance department added $50 million from a Louisiana Citizens Property Insurance surplus. 

The insurance department’s Fortify Homes provides homeowners with grants of up to $10,000 each to build or replace their roofs to a higher standard, though the awards typically don’t cover the entire cost. The program’s intent is to lower the home’s risk of storm damage and, in turn, the owner’s insurance premiums.

While the insurance department will continue administer grants for the $80 million previously allocated, the $20 million announced Monday will be doled out through the state Office of Community Development, which is in charge of dispensing the federal money in question from the Federal Housing Finance Agency. Landry said these grants will cover the entire cost of new roofs.

The new program is known as the Restore Resilient Opportunities for Overhead Fortification program, or Restore ROOF. The only strings attached to its grants is that the money must go to homes impacted by major hurricanes from 2020-21 — Laura and Delta. 

One of the state’s leading housing advocates disagrees with the governor’s assessment that there are enough resources to address the need for affordable residences in the state, saying the need is immense. 

“A lot of them have huge waiting lists. By no measure is any program that is creating affordable rentals meeting the need,” Andreanecia Morris, executive director for HousingNOLA, a coalition of affordable housing developers and advocates, said in an interview Monday.

The Restore ROOF program will start immediately, Landry said, with more information on how to apply available soon through the Office of Community Development. 

The insurance department’s Fortify Homes program is expected to reach 13,000 roof upgrades once the $80 million allocated this year is awarded, Temple said earlier this year.  

A Legislative Auditor’s report last year calculated homeowners receiving a Fortify Homes grant averaged more than $6,200 in out-of-pocket costs to pay for their roofing improvements. Recipients also reported a median 22% reduction in their homeowner’s insurance premiums.