Katrina After a Year – One Developer’s Contribution to the Housing Shortage

Published: August 2006

With the one-year anniversary of Hurricane Katrina upon us, we wanted to pass along a picture of a city still reeling from the effects of our nation’s worst natural disaster, and to salute one of our clients who is tackling one of the most pressing problems facing the Crescent City. As you’ve no doubt read, housing is in critically short supply for residents attempting to return to New Orleans, a situation severely hindering the city’s economic recovery.

Our client Marcel Wisznia, a New Orleans transplant and long-standing architect/developer in the city, is moving ahead with two historic developments which will help address the housing shortage. The projects, when completed, will create 267 units of market-rate and affordable housing.

The Saratoga Building

The Saratoga Building, located on Loyola Avenue in a recent expansion of the Lower Central Business Historic District, is a 1956 building office building being converted to residential use. Vacant for over 10 years prior to his acquisition, and subject to Katrina hurricane and flood damage as well as post-Katrina vandalism, Marcel’s project will create 155 much-needed affordable apartments near the center of downtown New Orleans. The project will receive HUD financing and will utilize historic tax credits as a financing source.

The Maritime Building

The Maritime Building on Carondelet Street is one of downtown New Orleans’ 20th-century landmarks. Marcel’s project will convert this 11-story office building in a mixed-use project to 112 apartments in addition to ground floor retail and second floor office space. Historic tax credits will be a critical part of the financing for the project.

As part of the Gulf Opportunity Zone Act of 2005, Congress provided a number of temporary economic incentives for portions of Louisiana, Mississippi, Alabama and Texas affected by the 2005 hurricanes. Among other provisions, the GO Zone legislation expands the low-income housing credits, increases the historic tax credit from 20% to 26%, provides additional New Markets tax credits, and sets up bonus depreciation rules.

Both the Saratoga and Maritime projects will utilize the 26% historic rehab credit.

Again, we salute Marcel Wisznia and his efforts in re-building a devastated city.