NEW ORLEANS — ReNEW Schools CEO Tanya Bryant joined New Orleans Mayor LaToya Cantrell and other city officials Wednesday to announce the launch of a down payment assistant program for educators in the Orleans Parish school system. The $1.5 million home ownership program will support early childhood educators, K-12 teachers and school behavioral health professionals.
“I’m so inspired by this community’s commitment to serve public schools and the educators who serve our children,” Bryant said. “In New Orleans, our educators, our teachers, our paraprofessionals are so dedicated to those positive outcomes and opportunities for our kids.”
The Teacher Homeownership Program was developed by the New Orleans Office of Youth and Families and the Office of Housing Policy and Community Development and is funded through the use Community Development Block Grant Disaster Recovery (CDBG-DR) and Neighborhood Housing Improvement dollars. The program’s launch is in response to the significant shortage of educators and to encourage the recruitment and retention of school professionals.
“Affordability has been at the forefront and a priority for my administration and the City of New Orleans,” said Mayor Cantrell. “We’ve administered programs such as this for homeownership throughout our city, but there is a real need to focus specifically on our teachers to address systemic issues that we are facing regarding the retention and recruitment of teachers coming to our community and remaining in the profession. Anything that we can do to leverage our resources is something that the City is willing to do, and this is an example of that commitment.”
Program Guidelines
Applicants must be currently employed as an early childhood instructor, K-12 teacher in a public school, or school behavioral health professional in New Orleans
Demonstrate a minimum of three years teaching or education experience at the time of loan application
Demonstrate continued employment in education for at least 3 years
Loan is subject to penalties and other claw-back provisions if applicant leaves the teaching/education profession within 3 years of application
Meet the income guidelines established for the program (listed below)
Qualify for a first mortgage with a City Approved Lender who will determine eligibility for the city’s forgivable second mortgage
Agree to occupy the property (a single family dwelling) as the principal residence for a minimum of 10 years
The property must be located in Orleans Parish
The selected house must meet minimum Housing Quality Standards
Maintain flood and homeowner’s insurance in the amount required by the mortgage lenders and the homebuyer program
The homebuyer does not have to be a first-time homebuyer
Funds will be available on a first come first served basis, but will be equitably dispersed across all five council districts
Income Limits
Maximum Income is 80 percent of the Area Median Income:
$39,300 (1- person household)
$44,900 (2-person household)
$50,500 (3-person household)
$56,100 (4-person household)
$60,600 (5-person household)
$65,100 (6-person household)
The down payment assistance will be provided in the form of an interest-free forgivable loan that will bridge the affordability gap between the price of the home, including closing costs and the maximum amount the homebuyer can borrow with a first mortgage. Approved applicants will receive up to $65,000 for down payment assistance and up to $5,000 in closing costs. The exact loan amount a homebuyer will be eligible to receive will depend on the household income, family size and need. More information, including how to apply, can be found at nola.gov/community-development/ or by calling OCD at (504) 658-4200.
