Improving Access to Housing and Healthcare in Louisiana

In recent years, Louisiana residents have faced mounting obstacles related to housing affordability. Property owners and renters have faced higher utility costs in the wake of extreme heat, winter storms and natural disasters. Rising insurance rates are hindering new development and increasing financial pressures on existing properties. That’s in addition to higher interest rates and inflation stymying the creation of new affordable housing nationwide.

These macro forces present challenges at a time when building and preserving affordable housing at scale is needed more than ever.

• In Louisiana, the National Low Income Housing Coalition estimates:

  • A gap of more than 115,600 affordable units across the state available to low income households making at or below 50% of area median income (AMI). 

  • Nearly three quarters of renters making between 31-50% of AMI are cost-burdened, or spending more than 30% of their income on housing and utility costs. 

  • Among extremely low income renters, or those who make up to 30% of AMI, the percentage of renters who are cost-burdened increases to 86%. 

Housing provides more than shelter to residents; there is a link between safe, affordable housing and public health. When communities lack adequate housing, it can negatively impact residents’ health—particularly amongst populations like seniors, veterans and children.

• Seniors with high housing costs are forgoing healthcare spending and food to afford their rent, mortgage and/or utility bills. They spend nearly 50% less on healthcare than their counterparts without high housing cost burdens. And 6.93 million U.S. households with a household member 60 or older sacrificed food or medicine to pay energy costs.

• Veterans’ healthcare experiences differed based on their housing situations. Unhoused veterans were more likely to report negative experiences at the doctor’s office than their peers who were stably housed.

• Housing instability can be a key indicator of child health outcomes. Multiple moves—moving three or more times in one year—has been linked to negative health outcomes among children.

Investing in affordable housing while increasing access to healthcare services helps improve positive community outcomes. Federal and state programs can help address these difficult challenges alongside the private sector. 

For example, through public-private partnerships like the federal Low Income Housing Tax Credit (LIHTC) and New Markets Tax Credit (NMTC) programs, Capital One supports community development in low income neighborhoods. 

Leveraging the NMTC program, Capital One invested in CrescentCare Mid-City, a Federally Qualified Health Center that will increase access to primary medical care and behavioral healthcare for New Orleans community members in a neighborhood where half of residents’ incomes are below the poverty rate. 

Recently, Capital One invested in Louisiana communities through construction debt and LIHTC equity investments that will create and preserve affordable housing. To further support multifamily housing development, Capital One works closely with Fannie Mae, Freddie Mac and HUD to finance mission-driven affordable housing, which is typically defined as serving residents whose incomes are at or below 80% AMI.

More than 300 households will benefit from newly constructed and rehabilitated affordable housing communities, which will provide safe, stable and affordable housing across the state. 

Tivoli Place (pictured above) is a 163-unit historic rehabilitation effort in New Orleans serving seniors. The rehabilitation includes upgrading to high efficiency systems and energy efficient appliances throughout the units, as well as adding new community amenities. Residents will also have access to renovated exam rooms for health screenings and vaccinations within the building, and internet will be included in base rents. Capital One made a LIHTC equity investment along with originating a HUD 221(d)(4) mortgage to preserve the existing affordable housing units.

In the South 7th Ward, Capital One originated a construction loan and made a LIHTC equity investment to finance St. Bernard Circle, a mixed-use, mixed-income development that will include 51 total units of new construction, with 40 units set aside as long-term, affordable apartments with rents at or below 60% AMI. Of those affordable units, St. Bernard Circle will have certain units designated for veterans, single-parent households and individuals with different physical or mental capabilities. Plans also incorporate two ground floor retail spaces intended for small, local, and minority businesses. 

Just a few miles away, the future Celeste Landing broke ground on 46 units of affordable housing. The development will be primarily new construction along with a historic rehabilitation of an existing building designated a historic landmark. Capital One originated a construction loan and made a LIHTC equity investment to support the development and rehab.

To the west of New Orleans, and close to the Louisiana-Texas border, construction is underway for Woodring Apartments in Lake Charles, which is being built in two phases for a total of 80 new affordable townhouse and multifamily units, along with 21 market-rate rental units. Capital One originated construction loans and made LIHTC equity investments for both phases.

And, through the Capital One Impact Initiative – a multi-year commitment that strives to catalyze economic growth in low- and moderate-income communities and close gaps in equity and opportunity – Capital One has made philanthropic investments in homeownership programs and provided support for individuals and families to overcome housing barriers across Louisiana.

Learn more about how Capital One is improving communities across the country with solutions that support affordable housing needs and goals.