New Orleans eases affordable-housing fees as developers abandon larger projects

A report released in 2025 concluded that New Orleans' affordable-housing mandate, introduced in 2020, had failed to generate any new apartment buildings. Builders, including veteran developer Kirk Williamson of Chester Development, argued that the $304,810 fee for foregoing on-site affordable units made mid-rise projects financially untenable, leading them to focus on four-plexes. In response, the City Council unanimously voted to slash the penalty to $10,000, preserving the inclusionary zoning framework for future activation.

Councilmember Lesli Harris emphasized that higher fees and stricter requirements could return when the real-estate market strengthens. The analysis was prepared by HR&A Advisors, the firm that originally helped design the policy. Industry leaders such as Dan Mills of the New Orleans Home Builders Association warned that affordable-unit requirements increase costs in an already expensive construction environment.