Federal housing officials have launched a mandatory review of Guste High Rise, the senior public-housing tower in Central City, in a move that could eventually shift the building from traditional public housing to tenant-based vouchers and force roughly 310 elderly residents to hunt for new homes. The Housing Authority of New Orleans, or HANO, says the review was ordered by HUD under Section 33 of the U.S. Housing Act and that no one is being moved out while the process plays out. Residents and advocates counter that vouchers alone are a shaky lifeline in a market short on units that are both affordable and accessible to seniors.
HUD Orders Section 33 Review
HUD has directed a required conversion review of Guste High Rise under Section 33, a federal process that examines whether tenant-based assistance would serve residents more efficiently, according to the Housing Authority of New Orleans. In a Feb. 10 press release, HANO said the review was triggered by persistent vacancies and steep operating costs and that Guste’s vacancy rate has blown past HUD’s thresholds. The agency pegged yearly operating costs at about $9.1 million, compared with roughly $4.4 million to provide tenant-based rental assistance for the same households. HANO stressed that the review is a federal call, not a local one, and said it will sit at the table with HUD while trying to find a path that keeps seniors under a stable roof.
Who Could Be Affected And The Math Behind It
As reported by NOLA, the review could ultimately affect about 310 residents, most of them elderly. The building’s occupancy has hovered near 77%, leaving close to 23% of its units empty. NOLA also cited a HUD letter stating that if Guste fails to clear the department’s tests, HANO would be required to issue vouchers to every household over a five-year period. Reporting placed the total cost of converting all tenants to vouchers at roughly $4.4 million, while a full modernization of the tower clocked in around $60 million. Those numbers on vacancy, operations and voucher expenses sit at the heart of HUD’s required-conversion calculation.
How The Federal Process Works
HUD’s Special Applications Center spells out the rules for required conversion. The agency looks at long-term vacancy patterns and operating costs, then requires a formal conversion assessment and, if conversion is on the table, a detailed plan that includes resident and community input, environmental review and sign-offs from local officials, according to HUD's Special Applications Center. If HUD signs off on a conversion plan, tenant-based vouchers are supposed to be available to every household, and residents can try to use those vouchers either to remain at the site or to move elsewhere. SAC guidance also makes clear that public housing agencies must prove that rehabilitation is cost-effective before HUD will allow a development like Guste to stay in the public-housing portfolio.
HANO Says It Will Fight To Keep Seniors Housed
HANO says it is pushing back, arguing that Guste should be spared from mandatory conversion because it is reserved for seniors, serves as a community hub and sits in a city already strapped for affordable units. The agency says it has submitted its assessment to HUD and met with the HUD Property Solutions Panel. In its press release, HANO Executive Director Marjorianna Willman said the authority will pull together a community-based team that includes residents, the Guste Homes Resident Management Corporation, advocates and local leaders to shape any future plan and defend residents’ interests. HANO also underscored that the review "is not a decision by HANO" and said it intends to tap every available repositioning tool to keep tenants protected.
Residents, Advocates And The Local Squeeze
Residents and housing advocates warn that a voucher in hand does not automatically translate into a safe apartment door opening in New Orleans, given the shortage of units that are both affordable and designed for aging tenants. As reported by NOLA, Cynthia Wiggins told reporters that Guste is not a distressed property and that multiple capital repairs and system upgrades have already gone into the building. HUD officials, in a December letter, nonetheless flagged Guste as appearing to meet the agency’s definition of a "deeply distressed, high-vacancy" development. Local advocates also point to long Section 8 waiting lists and a limited number of landlords who accept vouchers, a combination that could make it especially hard for seniors to actually use tenant-based assistance.
What Happens Next
Under Section 33, HUD will now review HANO’s assessment and either allow rehabilitation to proceed under a HUD-approved plan or require conversion to tenant-based assistance. According to guidance from HUD's Special Applications Center, that process can stretch over years and must include public input and formal approvals from HUD. If HUD orders conversion, HANO will have to submit a detailed plan laying out how residents will be served over a five-year span and show the relative costs and benefits of rehabilitation compared with vouchers. Officials at both HANO and HUD say they will keep residents updated and provide opportunities for them to speak up as the review moves forward.
