No one could have predicted

Damn hard to believe no one sawthis coming

Credit crunch threatens N.O. housing plans

Although demolition of the sturdy brick buildings at Lafitte is
scheduled to begin this week, developers still have not secured all of
the financing to replace the “big four” public housing complexes with
mixed-income communities.

The rapid decline in financial markets has upset
plans developers made last year to remake the public housing
developments with a mix of public and private money. Since the City
Council voted to demolish the complexes late last year, a spiraling
credit crisis has made banks uneasy about making new loans. Meanwhile,
the value of low-income housing tax credits that will be used to
finance the projects has declined.

In recent weeks, the Louisiana Housing Finance Agency, the state
entity handling the award of tax credits, has said that any affordable
housing developers who have not yet closed on their financing plans may
find themselves unable to do so.

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