Affordable housing sees big numbers in Terrebonne

Efforts to create affordable housing in Terrebonne Parish are moving forward. However, some officials are questioning the method.

Terrebonne Parish council members approved two affordable housing developments totaling $4.9 million at a Community Development and Planning Committee meeting earlier this month, by a vote of 8-1.

However, the measure drew sharp criticism from one official who called the bid process “mysterious.”

Johnny Pizzolatto, a councilmember from the 5th District, voted against the recommendations, saying they didn’t meet the same standards.

“I don’t understand how we can issue these awards when nobody was talking about the same thing,” he explained. “We’re not comparing apples to apples. We’re comparing apples to oranges.”

Pizzolatto also referred to the process as an “open book.”

The money to fuel the projects will come from the Louisiana Office of Community Development’s Disaster Recovery Fund in the form of loans, an agency that will be charged with giving the final thumbs up.

The funds can only be used to help build vital infrastructure components on vacant lots, like streets, sidewalks and utilities, said Department of Housing and Human Services Assistant Director Kelli Cunningham.

While the agency’s request for proposals didn’t set a minimum on the number of homes being constructed, it’s a common occurrence when infrastructure is the only thing being funded, she explained.

Local developer Ronnie Shaw, owner of R. J. Shaw Construction Company, was awarded $2.25 million for a subdivision designed to contain 116 homes on less than 30 acres of land in Gray. But those numbers could very well change, as Shaw originally asked for $2.5 million in funding, said officials.

“It could be anywhere between 100 and 116,” noted the developer. “We’ll try and get as many as we can.”

S.P. LaRussa and Charles Giglio, owners of LaRussa Enterprises and Westgate Development, will receive the same amount of money for a subdivision with 226 homes on about 50 acres near East Street in Houma. The amount of money received is about 58 percent less than they originally requested.

“The homes will get built regardless,” assured LaRussa. “If I have to, I’ll do the rest the conventional way.”

In order to qualify for the loans, which are conditional, developers must sell 55 percent of the lots to individuals or families making 80 percent of the area’s median household income. The remaining lots, while expected to be similar, can vary in size and price, acknowledged Cunningham.

A total of eight proposals were considered for the funds; two were chosen based on the developer’s ability to leverage financial resources, design concept, and location.

Council Chairwoman Arlanda Williams welcomed the subdivisions, explaining there is a great need for affordable housing throughout the parish. “I would love to see affordable home ownership, especially in my district,” she said.

The parish’s Planning Commission and the state must first approve the proposals before construction will begin. A timeline has yet to be determined, said Cunningham.

The parish, according to officials, has already approved LaRussa and Giglio’s design. “But there’s several different things that have to be done before the state will approve the project,” noted Cunningham.

Despite that, LaRussa said he has already started pre-selling homes and plans to begin construction in June or July. Homebuyers should expect to spend between $120,000 and $145,000, he noted.

“There’s nothing in Louisiana of this magnitude for affordable housing,” added LaRussa. “This development is one of a kind.”