Brown’s Dairy site set for $80 million makeover to affordable housing with health care | Business News

A New Orleans-based nonprofit and its partners broke ground Wednesday on an $80 million affordable housing project on the site of the old Brown’s Dairy in Central City, with the aim of completing its 192 units as well as health care and community facilities by summer 2023.

The project, the cost of which has ballooned by one third over the last 18 months because of supply constraints and inflation, is a “health and housing” pilot project for the Gulf Coast Housing Partnership. Ninety-two of the one-, two-, and three-bedroom rental units will be reserved for residents who are over 55 and eligible for Medicaid.

New Orleans, like many U.S. cities, has struggled to meet the need for affordable housing amid soaring property values and a shortage of housing stock. Advocacy group Greater New Orleans Housing Alliance, which advocates for more affordable housing in the city, estimated in its latest report that 58,000 New Orleans households are “cost burdened”, meaning they pay more than 30% of their income on housing. 

Brown’s Dairy, a local landmark since it started operations in Central City in 1905, closed for good in 2016 with the loss of 185 jobs. The site had been for sale for $8.5 million for several years before the nonprofit group acquired it at the end of 2020.

Plans for the conversion of the 210,000 square foot space include five-story residential buildings fronting Oretha Castle Haley Boulevard and Baronne Street. There will be a centrally located fitness center and green courtyard space, the consortium said in a statement accompanying Wednesday’s groundbreaking ceremony. 

Alembic Community Development also is a partner in the consortium. Alembic converted the nearby Myrtle Banks Elementary School into the Dryades Public Market and office space.

However, the market was shuttered even before the pandemic took hold and Alembic’s executive director, Jonathon Leit, has said that the lack of organic foot traffic in the area was the main reason the food mart didn’t take off.

The hope is that the Brown’s Dairy conversion will help rebuild the residential area that once supported bustling commercial activity.

City puts in investment

The project is partly backed by public money. Mayor LaToya Cantrell said: “Our investment of $5.4 million leveraged through state and federal dollars will generate a huge economic impact for New Orleans and provide contracting opportunities for local businesses that meet the city’s [disadvantaged business enterprises] requirements. This is a win-win for our city!”

Gulf Coast Housing also received part of its financing from a $2.5 million grant it won from via the “Housing Affordability Breakthrough Challenge” sponsored by Wells Fargo and Enterprise Community Partners.

Other financing came from Advantage Capital, AMCREF Community Capital, Belle Reve, Finance New Orleans, Home Bank, Housing Authority of New Orleans, Louisiana Housing Corporation, Louisiana Office of Community Development, New Orleans Office of Community Development, R4 Capital Funding, and Regional Community Finance and US Bank.

Insurance company Aetna replaced Humana as one of the partners in the project. 

As research has increasingly emphasized the link between housing and health, state and federal government agencies running programs like Medicaid and Medicare have been providing financial incentives to insurers and managed care organizations such as Aetna, which is part of CVS Health, to become directly involved in improving their clients’ housing situations.

The project includes 12,600 square feet of commercial and community space anchored by a Federally Qualified Health Center operated by DePaul Community Health Centers.