Program Overview 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. HERO is designed to: Address the communities’ shortage of affordable homeownership opportunities in the City of New Orleans Promote neighborhood stabilization and reinvestment in underserved communities Expand wealth-building opportunities for Low-to-Moderate Income (LMI) households through sustainable homeownership The program promotes long-term sustainability by: Creating permanent affordable homeownership opportunities Leveraging private first mortgage financing and other public and private investment sources; and Recycling HTF Program Income through loan repayments and resale proceeds to support future housing activities. The New Orleans Redevelopment Unlimited (NORU), NORA’s affiliated nonprofit lending entity, 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 14, 2026 – November 13, 2026 Register for an account through NORA’s WebGrants portal here. Please allow for up to 2 business days for NORA to approve your registration. Once approved, you may begin submitting applications to open funding opportunities. If you already have a valid NORA WebGrants User ID and Password, you do not need to register again. Your existing credentials can be used to access and apply for any open funding opportunity.
Target Areas The target areas for this program prioritizes areas designated as stronger-market neighborhoods by the New Orleans Market Value Analysisrequirement that all funds must affirmatively further fair housing. NORA reserves the right to expand eligible target areas to include additional underserved or priority neighborhoods within the City of New Orleans, as determined by program needs, funding availability, and consistency with adopted housing and community development priorities. Eligible Properties NORA will provide a current list of eligible vacant properties as an attachment to the applicable Funding Opportunity in NORA's WebGrants portal. The property inventory will consist of vacant lots located within designated target areas of New Orleans and available for redevelopment through the Homeownership Expansion and Resilience Opportunities (HERO). Only applicants in good standing with New Orleans Redevelopment Unlimited, Inc. (NORU) will be eligible to receive property awards under this solicitation. Applicants are responsible for reviewing the most current property inventory posted with the Funding Opportunity. NORA properties: Will be sold at 10% of appraised value or $4,000, whichever is greater. Must be developed for households earning ≤100% of Area Median Income (AMI) All constructed residential units must: Meet applicable state and local building codes, permitting, and construction requirements Achieve Energy Star ® certification consistent with the most current applicable version in effect at the time of construction Comply with FORTIFIED construction standards in accordance with the most current applicable version, where applicable Adhere to NORA’s Hazard Resilience Standards, consistent with the most current applicable version
Under HERO, New Orleans Redevelopment Unlimited, Inc. (NORU) 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. NORU is authorized to carry out eligible housing activities utilizing HTF funds. As NORA’s affiliated nonprofit development entity, NORU may administer construction financing, subsidy assistance, acquisition, redevelopment and other eligible affordable housing activities designed to support neighborhood revitalization objectives. NORU 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. Developer Eligibility Individuals, non-profit, and for-profit entities are eligible to apply as a developer in this program. Applicants must: Have total combined maximum 80% loan-to-value (LTV) Be in good standing with the City of New Orleans and have no outstanding debts Be listed as Active and In Good Standing with the Louisiana Secretary of State In good standing with the Office of Code Enforcement Not encumbered with outstanding ad valorem taxes or municipal lien violations at the time of application and closing Not in violation or default of any other NORA program at the time of application or closing Demonstrate experience and capacity to complete the development of lots that will be sold to Qualified Homebuyers after construction completion Demonstrate project strength and financial feasibility Demonstrate repayment ability Demonstrate community impact within the selected target areas
Eligible Uses Financing is available to support the redevelopment and construction of scattered-site, for-sale residential housing on properties acquired through this program. Eligible costs shall be limited to approved redevelopment and construction expenses consistent with approved project budgets. All funds are disbursed on a reimbursement basis only, and applicants must maintain accurate and complete documentation of all project expenditures. Therefore, developers must have the capacity to maintain detailed documentation and accurate accounting of all project expenditures, as well as final “actual” development costs for each property constructed HERO funds may be utilized for eligible housing activities including, but not limited to: Hard Costs New construction of single-family housing units Site preparation and infrastructure directly related to housing Construction labor and materials Soft Costs Architectural and Engineering services Plans and specifications Required Inspections and permits Appraisals (excluding Market Studies) Fire Marshal fees and City Agency permitting Fees related to construction/permit fees to the City Agencies Construction Management Insurance & Project Costs Builder’s Risk Insurance Property Insurance during and after construction Homebuyer Assistance (if needed to ensure affordability) Down payment assistance Closing Cost assistance Gap financing All required forms and detailed budget items are provided within the WebGrants funding opportunity and must be completed and uploaded as part of the application. Ineligible Uses Rental housing development is not an eligible activity for the use of these funds. Funds may not be used for: Acquisition of real property or land Refinancing of existing or new debt or reimbursement of previously incurred project costs Payment of any delinquent taxes, arrearages, liens, judgements Payment of governmental fines or penalties Buyout any stockholder or equity holder in a business entity Purchase of financial instruments intended for the sole purpose of return on investment Any other activity determined by NORU to be ineligible or not compliant with applicable regulations.
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 $20,000 must be repaid to NORU 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 $60,000 of the loan may be forgiven as Developer/Project Subsidy, based on documented need and project financing gap. Up to $60,000 may be provided to a qualified Homebuyer as a Homebuyer Subsidy, based on documented need. The Developer must reserve a minimum of $20,000 for the Homebuyer Subsidy. Homebuyer subsidy will be provided in the form of a Soft Second Mortgage The combined total of developer/project subsidy and homebuyer subsidy may not exceed $80,000 per property. Repayment of Unused Funds Any portion of the loan not applied as subsidy must be repaid to NORU, in accordance with loan terms.
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 NORU 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, but eligible homebuyers may not own more than 50% interest in any other home at the time of closing. 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, NORU 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)
