According to feedback from locals and insight from realtors, existing housing stock in and around downtown is in limited supply due to low vacancy rates and a lack of housing options. Riverfront condos and downtown apartments typically house singles, young couples (without children), and seniors who downsized from single-family homes. Recent housing developments downtown include the Hatchell Building Apartments (work-live lofts) and Myrtlewood Cottages (small homes) which have diversified available offerings both in price and design, but are almost fully occupied at any given time. This is true of most of the housing options in the downtown area which demonstrates the demand for more housing development, especially as more restaurants, retail, and other cultural amenities begin to emerge in West Monroe.

Since public infrastructure in downtown West Monroe is approximately 80-100(+) years old, developers seeking to revitalize existing buildings or invest in new construction might be financially inhibited from proceeding with their proposed projects with the added expense of improving public infrastructure for the benefit of their commercial or residential development. Additionally, the average age of the buildings located downtown is 85 years old which requires a more substantial capital investment to rehabilitate, upgrade, preserve, and maintain these buildings.

According to the U.S. Department of Housing and Urban Development’s Office of Policy and Research, “neighborhood blight and the presence of abandoned properties have profound negative impacts on afflicted communities. Blighted properties decrease surrounding property values, erode the health of local housing markets, pose safety hazards, and reduce local tax revenue.” Blighted properties are more than an eyesore and make people feel less safe whether or not crime actually occurs more frequently in these neighborhoods. Additionally, when neighborhoods become less attractive and are perceived to be unsafe, prospective buyers are less likely to purchase homes in these areas fueling further population loss and economic disinvestment. For West Monroe, blighted and/or abandoned properties in and around downtown are reducing local tax revenue making it more costly for the city to provide public services and other functions such as code enforcement, waste cleanup, police, and fire.

An analysis of West Monroe’s demographic and economic indicators demonstrates deep-rooted challenges for some residents who want to purchase a home. In some cases, prospective buyers have insufficient resources to afford a down payment or have difficulty qualifying for traditional financing from a bank. In other cases, homeowners become so cost-burdened by their mortgage payments that they are paying more than 30% of their monthly income for a singular fixed expense. In West Monroe, the median household income ($32,182) is substantially lower than Ouachita Parish ($40,081) and the state ($46,710) creating a barrier to homeownership for many without quality, high-paying jobs and making it more difficult for West Monroe to transition residents from rental units to owner-occupied housing.

Within 30 miles of West Monroe is the University of Louisiana Monroe, Louisiana Tech University, Grambling University, and Louisiana Delta Community College. Tens of thousands of young adults and non-traditional students residing in the region need housing they can afford during their time in college, graduate school, and once they graduate if they can find a job and afford to stay. Northeast Louisiana is predominantly rural and experiences “brain drain” when college-educated talent finds work elsewhere in Louisiana or out-of-state. But with job opportunities available in Ouachita Parish and nearby communities, West Monroe should continue developing modern housing options in and around downtown to lure recent college graduates and young singles/couples to live downtown near retail storefronts, local restaurants, and the Ouachita River. Sometimes this requires additional incentives such as cash to be used for rent/down payment and free gym membership or subsidized office space (for remote workers).

Examples of incentive programs like these include:

• Newton Housing Initiative | Newton, Iowa
• Remote Shoals | Colbert and Lauderdale counties, Alabama
• Tulsa Remote | Tulsa, Oklahoma

Although the development of owner-occupied units will undoubtedly increase foot traffic downtown, offering more locally-owned short-term rentals for business people, students, remote workers, and visitors needing a place to stay with more amenities and flexibility than a hotel will help local businesses and restaurants sustain extended operating hours and create the perception that downtown is the place to be during the weekdays, weekends, and all hours in between. Nowadays, people are staying in short-term rental units all over the world booking through companies such as Airbnb, VRBO, and HomeAway. While the goal is not to make downtown a destination for tourists and visitors alone, short-term rental units can provide a more unique experience than the alternative (i.e. a standard hotel) and can be modified for long-term renters and tourists passing through the area.

There are several programs at the state and federal levels that provide resources to help finance the construction of new and rehabilitation of existing housing developments as well as mortgage/rental assistance and other community housing projects. For example, through the State Community Development Block Grant Program, the U.S. Department of Housing and Urban Development provides funding for each state to allocate to non-entitlement areas (cities with populations of less than 50,000 and counties/parishes less than 200,000) to support rehabilitation of residential and non-residential structures, relocation and demolition, acquisition of real property and construction of or improvements to public facilities, among other things. Additionally, the Louisiana Housing Corporation administers a number of programs such as the Low-Income Housing Tax Credit Program and Multifamily Revenue Bonds to assist developers and home seekers alike in building/rehabilitating and maintaining quality places to live in Louisiana communities.

As previously mentioned, more than half of the online survey participants responded favorably (‘yes’ or ‘maybe’) when asked if they would consider living in downtown West Monroe. Additionally, 56% of these survey respondents believe more ‘2nd-Story Condos/Apartments’ should be built downtown. Upper story housing in downtowns across the country has become more and more popular over the years and appeals to a variety of age groups — young singles and couples, middle-aged, and seniors — and is inclusive for people with varying levels of income. Downtown living is attractive for a number of reasons but many consider relocating due to the proximity to restaurants, retail stores, coffee shops, churches, and other amenities — especially if these amenities and services exist in a revitalized, walkable downtown. Recent upper story housing development in downtown has already proven to be successful with minimal vacancies, not to mention the affordability of living in West Monroe.

To incentivize more development in downtown, there are a few programs that property owners and prospective developers can use to rehabilitate existing buildings to increase the supply of upper-story housing including, but not limited to, the following:

The Restoration Tax Abatement (RTA) program provides an up-to ten-year abatement of property taxes (ad valorem) on renovations and improvements of existing commercial structures and owner-occupied residences located within economic development districts, downtown development districts, historic districts, and opportunity zones. RTA is available to all Louisiana businesses and homeowners with existing structures to be expanded, restored, improved or developed in qualifying locations and as approved by the local governing authority.

Eligible expenses:

• Building and materials
• Machinery and equipment (only that which becomes an integral part of the structure)
• Labor and engineering
• Non-eligible expenses:
• Acquisition cost of the structure or land
• Movable and personal property

For more information about the RTA program, visit www.opportunitylouisiana.com.

Created in 2002 by the Louisiana Legislature, the State Commercial Tax Credit program is designed to encourage the redevelopment of income-producing historic buildings located in Downtown Development Districts or certified Cultural Districts. Rehabilitation projects must exceed $10,000 in qualified rehabilitation expenses and must be completed according to the Secretary of the Interior’s Standards for Rehabilitation. Once earned, credits are fully transferable and may be carried forward for up to five years. Although the State Commercial Tax Credit program sunsets December 31, 2021, the credit is equal to 20% of eligible costs and expenses incurred January 1, 2018, or later, regardless of the year in which the property is placed in service.

For more information about the State Commercial Tax Credit program, visit www.crt.state.la.us.

Additionally, the Federal Historic Preservation Tax Incentives program offers a 20% income tax credit for the rehabilitation of historic, income-producing buildings that are determined by the Secretary of the Interior, through the National Park Service, to be “certified historic structures.” The tax credit is only available to properties rehabilitated for income-producing purposes including commercial, industrial, agricultural, rental residential, or apartment use. In general, only those costs that are directly related to the repair or improvement of structural and architectural features of the historic building will qualify.

For more information about the Federal Historic Preservation Tax Incentives program, visit www.nps.gov.

Combined, property owners and prospective developers seeking to rehabilitate historic, income-producing buildings downtown can combine state and federal tax credits to realize up to 40% of the total project development costs.