1926 - HERO Funding Opportunity - 2026
Funding Opportunity Details

Housing Trust Fund Programs

Final Application Deadline: Dec 1, 2026 4:00 PM

Description

• INFORMATIONAL SESSION

   

  An informational session meeting will be held, on November 4th, at 3:00pm (Central Time).  The session will be conducted virtually.  Participation is encouraged but not required.  During the session, NORA staff will: 

  • Provide an overview of the program 

  • Review application requirements 

  • Answer questions from prospective applicants 

   

   Registration is required to attend. Register here.

  A recording of the session will be made available on NORA’s website following the meeting. 

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  PROGRAM SUMMARY

   

  The Homeownership Expansion and Resilience Opportunities Program (HERO) is an affordable homeownership initiative to support the development of quality affordable housing. The program combines discounted land disposition, construction financing, and project subsidy assistance such as gap financing to eligible developers to construct affordable, for-sale homes for homebuyers up to 100% AMI in Orleans Parish. The program is open to developers building on eligible properties and does not require construction on NORA-owned land.

  NORA will offer construction loans during the construction period as well as project subsidy assistance to cover any funding gaps that exist between the total development cost of the project and the final sales price of the home.  Funds are also made available directly to homebuyers to bridge affordability gaps that may exist between their first mortgage financing and the final sales price of the homes.

   

  Application window: October 21, 2026 – December 1, 2026

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  Applicant Eligibility

  Individuals, non-profit organizations, community land trusts, and for-profit entities are eligible to apply as a developer in this program. Applicants must:

  • Demonstrate financial feasibility, capacity and repayment ability
  • Demonstrate organizational experience and capacity to complete the project
  • Be in good standing with the City of New Orleans and have no outstanding debts with the City of New Orleans 
  • Be listed as Active and In Good Standing with the Louisiana Secretary of State
  • Be in good standing with the City’s Office of Code Enforcement
  • Not be encumbered with outstanding ad valorem taxes or municipal lien violations at the time of application and closing
  • Not be in violation or default of any other NORA program at the time of application or closing
  • Not be debarred, suspended, or otherwise excluded from receiving government funding

  Eligible Properties

   

  Applicants may elect to purchase a vacant NORA property or may apply with a property currently owned by the applicant. Community Land Trusts (CLT) are eligible to apply. All properties must be developed into single-family houses and must be sold to households earning ≤100% AMI. 

  Applicants that apply with a property they currently own must have a minimum of 20% developer equity in the project, inclusive of the HERO loan. You may not borrow more than 80% of total development cost including the HERO loan. The property must be free of tax liens, judgments, code violations and other such encumbrances. 

   

  NORA will provide a specific list of eligible NORA-owned vacant properties within the selected target areas of New Orleans. NORA Properties are sold at 10% of appraised value or $4,000, whichever is greater. The difference between Fair Market Value at the time of closing with developer and the discount amount will be payable in the event that the specified requirements of HERO are not met including: (1) each property must be redeveloped within 365 days of closing, (2) each completed home must be sold to a Qualified Homebuyer, and (3) all homes must be built to NORA’s building standards. 

  Click here for a full list of properties

   

  Eligible Activities

  Under HERO, New Orleans Redevelopment Authority will utilize HTF funds to provide construction financing and related subsidy assistance for the development of affordable housing units benefiting households up to 100% AMI.

  NORA is authorized to carry out eligible housing activities utilizing HTF funds including administering construction financing, subsidy assistance, acquisition, redevelopment and other eligible affordable housing activities designed to support neighborhood revitalization objectives.

  NORA may retain revenue generated from lending activities, including but not limited to interest earnings and principal payments, and other related proceeds, to support the continued operation and expansion for the construction lending program. Revenue received from the sale or resale of housing constructed under HERO as a result of carrying out eligible activities will be retained for the specific purpose of creating revolving loan funds to continue the construction lending program activity.

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  Award Structure & Financing

  The program will provide construction financing to qualified developers to support the development of affordable housing units. Financing is structured as a low-interest construction loan designed to cover the gap between Total Development Cost (TDC) and the final sales price of the housing unit.

  Loan Structure

  • Loans are issued on a per-property basis

  • Maximum loan amount: $100,000 per property
  • A minimum of $10,000 must be repaid to NORA

  Developers will execute all required loan documents prior to closing and the commencement of construction.

  Subsidy Structure 

  Loan forgiveness is structured as a sum of developer/project subsidy and homebuyer subsidy, subject to the following limits:

  • A maximum of $80,000 of the loan may be forgiven as Developer/Project Subsidy, based on documented need and project financing gap.
  • Up to $70,000 may be provided to a qualified Homebuyer as a Homebuyer Subsidy, based on documented need. The Developer must reserve a minimum of $10,000 for the Homebuyer Subsidy.
  • Homebuyer subsidy will be provided in the form of a Soft Second Mortgage
    • For projects utilizing a Community Land Trust (CLT) model, given CLTs affordability requirements for all subsequent buyers of the home, affordability subsidies are incorporated into the project’s development costs rather than provided as an individual subsidy to the homebuyer. The $10,000 reservation for homebuyer subsidy will not apply for CLT properties, provided the homebuyer does not need it. Up to $90,000 in loan forgiveness may be allocated to the developer subsidy, subject to all other program requirements and the maximum total forgiveness limit remains at $90,000.
  • The combined total of developer/project subsidy and homebuyer subsidy may not exceed $90,000 per property.

  Repayment of Unused Funds 

  Any portion of the loan not applied as subsidy must be repaid to NORA, in accordance with loan terms. 

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  Homebuyer Requirements

  Homebuyer Eligibility

  Homebuyers must meet the following eligibility requirements:

  • Have a household income at or below 100% AMI, based on the most recent limits published by HUD. Income eligibility will be determined based on the income of all household members in accordance with NORA income verification standards.
  • Qualify for first mortgage financing
  • Agree to occupy the house as their primary residence throughout the applicable Affordability Period which shall be defined by the affordability provisions detailed in a Promissory Note and a Declaration of Covenants and Restrictions.
  • Not have had an ownership interest in a principal residence during the 3-year period ending on the date of purchase of the property. 
  • Not own more than 50% interest in any other residential property at the time of closing

  Homeownership under this program is not restricted to first-time homebuyers.

  Homebuyer Assistance & Financing Coordination

  Homebuyers are eligible to apply for and receive Soft Second funds from City of New Orleans programs. If the buyer is approved for both, NORA will subordinate its lien position to the City’s loan through an Act of Subordination, subject to approval.

  Developer Responsibilities for Homebuyer Identification

  Developers are responsible for:

  • Marketing homes to income-eligible homebuyers and Good Neighbors
  • Ensuring that all buyers meet program eligibility requirements
  • Coordinating with real estate professionals (agents) and program partners to identify qualified purchasers

  Developers must model their projects to target households at or below 100% AMI. Developers must demonstrate, through their application, a clear and feasible strategy for identifying and securing qualified homebuyers.

  First Look for “Good Neighbors” - Priority Marketing

  To support neighborhood stability and community investment, developers must prioritize marketing to

  “Good Neighbors” before all other buyers during the initial marketing period.

  • For the first 30 days of marketing, properties may only be placed under contract with buyers who meet both:
  • The definition of a Qualified Homebuyer, and
  • The definition of a Good Neighbor
  • “Good Neighbors” include households with at least one member employed as:
  • A law enforcement officer (with the ability to make arrests for violations of federal, state, or local laws)
  • A pre-kindergarten through 12th-grade teacher
  • A firefighter
  • An emergency medical technician (EMT)

Attachments

Website links