NEW ORLEANS, LA -  The New Orleans City Council is calling for clarity and transparency from the New Orleans Area Habitat for Humanity after recent reporting revealed the organization has sold several properties within Musicians’ Village, a landmark post-Katrina development designed to provide affordable living for local musicians and culture bearers. Residents are now expected to pay triple their former rent under the new owners.

In recent years, the Council has partnered closely with Habitat for Humanity to support affordable housing efforts, including allocating $2 million in 2024 to assist Habitat homeowners facing steep insurance hikes that threatened foreclosure. More than 120 Habitat homeowners were at risk of losing their homes due to an increasingly volatile insurance market, prompting the Council led by Councilmember Lesli Harris to intervene.

Councilmembers have expressed deep concern that the Musicians’ Village sale could destabilize a culturally significant neighborhood and potentially displace long-standing residents.

“The Council stepped up in 2024 because we believe in Habitat’s mission and in keeping families housed,” said Councilmember Lesli Harris. “That is why this situation is so concerning. A decision of this magnitude, one that could impact culturally rooted residents in Musicians’ Village, should have come with transparency and collaboration. We remain committed to protecting these households and the original vision of the Village.”

Council President JP Morrell said, “The Council was completely blindsided by the sale of homes in Musicians' Village that will result in a steep rental hike for artists. The fact that this sale had no consideration or provisions for the current tenants is disturbing and contradictory to Habitat for Humanity’s mission. There are too many questions that remain unanswered at this time, and this Council will get to the bottom of this.”

Council Vice President Helena Moreno said, “The Council previously directed critical funding to Habitat to stabilize more than 100 older New Orleanians on the brink of losing their homes because they could no longer keep up with their mortgage and insurance payments. It’s deeply disappointing to now see Habitat turning around and selling units without any affordability safeguards, while rents climb for the very residents we stepped in to protect.”

Councilmember Joe Giarrusso said, “While I am hoping I am misunderstanding, it appears that Habitat sold housing dedicated to musicians without protecting the rents they are currently paying and instead will be charged far more. Also, it doesn’t appear the affected musicians were notified of this sale.”

Councilmember Oliver Thomas said, "Our culture bearers are the heartbeat of New Orleans. They carried this city through our darkest days after Katrina, and they deserve stability, dignity, and housing they can afford. To see long-time residents of Musicians’ Village many elderly and on fixed incomes suddenly facing rent increases that could displace them is deeply troubling. This is not just about housing; it’s about protecting the people who make New Orleans what it is. We owe them more than this.”

The Council emphasized that Musicians’ Village was not only a housing development but a symbol of New Orleans’ resilience, created to support musicians returning home after Hurricane Katrina.

Councilmember Lesli Harris has formally requested in a letter to Habitat for Humanity leadership for a full briefing and asked for:

• An explanation of the decision-making process and rationale for the sale
• Assessment of impacts on current residents
• Plans to uphold affordability and cultural preservation in the Village
• A renewed commitment to transparent communication with the City Council