In the spring of 2019, a team of students researching within the "Architecture and Engineering Services" initiative sought to better understand the major players, financing, and timelines of specific architectural projects that were significantly affected by Hurricane Katrina. And while many questions were answered, many more remain. The below research, by Eddy Almonte (MUP '19), takes a close look at the demolition of public housing New Orleans through the lens of the C.J. Peete Houses.
Before Hurricane Katrina made landfall in New Orleans in 2005, the privatization of public housing was already underway. Since 1996, HOPE VI grants through the Department of Housing and Urban Development were used by developers and organizations to demolish and replace public housing with mixed-income housing in order to redevelop entire neighborhoods.1 The Housing Authority of New Orleans has been in federal receivership since 2002, granting HUD direct control over New Orleans' public housing stock.2 After Katrina, the rate of demolition for viable and structurally sound public housing in New Orleans increased under the guise of disaster recovery.3 C.J. Peete Houses, also known as Magnolia Houses, was one of the Big Four public housing developments that were slated for complete demolition after Katrina.4 Since 1998, C.J. Peete had been in the process of being emptied and partially demolished, with only 144 people living there at the time of the storm. [citation] In spite of community resistance, C.J. Peete was fully demolished and redeveloped as Harmony Oaks beginning in late 2008.5 At its height, C.J. Peete operated 1403 public housing units. Today, only 143 units on site are designated as public housing.6
Developer: Central City Partners:
Urban Strategies Inc. — A nonprofit corporation and subsidiary of McCormack Baron Salazar responsible for coordinating community and social services at Harmony Oaks.12 Received funding from private foundations such as the Annie E. Casey and Ford Foundations to administer services.13
New Orleans Housing Authority (HANO) — Went under receivership with the federal government in 2002. HUD grants were directly distributed to HANO for the HOPE VI Demolition and Revitalization program.
US Department of Housing and Urban Development (HUD) — Administered federal grants to HANO through HOPE VI, Choice Neighborhood Implementation Program and Community Development Block Grants.
Federal Grants through HUD:
$3 million HOPE VI Demolition Grant (1998)14
$20 million HOPE VI Revitalization Grant (2007)15
$27 million in Community Development Block Grants16
through the city's already-acquired $178 million worth of tax credits and CDBG funding17
Private Investments:
$56 million from Goldman-Sachs Urban Reinvestment Group through the Gulf Opportunity Zone Program18
$850,000 in Urban Strategies Inc. funding from the Annie E. Casey and Ford Foundations19
$20 million for 50 offsite homeownership units at Harmony Oaks (NONDC)20
$178 million budget by McCormack Baron Salazar21
vs. $129 million budget by HANO RFQ ($28 million soft costs:22
$11,108,423.80 Developer's fee (including $3,263,371 Architect's fee for design); $66 million for construction hard costs23
)
There is an often significant discrepancy between what government contracting officials label as "A&E" (Architecture & Engineering) and what students and professionals from the field would include in that category. The timeline below seeks to highlight both perspectives.
Other, non-coded "A&E Services" are shown in italics
1998
Demolition Grant
Several C.J. Peete buildings are demolished under a HOPE VI Demolition Grant of $3 million. C.J. Peete returns to the original Magnolia size.24
Left: C.J. Peete site in 1998; Right: C.J. Peete site in 2003, following demolition of several buildings (Google Earth)
Early 2002
Bush administration breaks the accord that Mayor Morial had crafted with a cooperative Clinton White House to maintain local control over HANO and imposed a series of HUD-appointed administrators to run the agency.25
August 2005
Hurricane Katrina floods most public housing developments in the city. No structural damage was detected after MIT architecture professor John Fernandez inspected the buildings in 2006.26
2006
HANO federal receiver William Thorson writes in an email that the public housing repair costs per unit seemed low, and instructed his staff to "take photos of the worst of the worst."27
February 2006
HUD advises the US Senate that it plans to reopen a quadrant of B.W. Cooper, make repairs at C.J. Peete, and reoccupy units at Iberville.
June 2006
Without notice to residents, HUD announces it will demolish more than 5,000 public housing apartments in St. Bernard, C.J. Peete, B.W. Cooper, and Lafitte.28
June 2007
Inspection
Anderson v. Jackson filed, a class action lawsuit on behalf of displaced New Orleans public housing residents that claims violations of the 1937 Housing Act and the 1968 Fair Housing Act.29
August 17, 2006
CDBG
HUD approves $100 million in Community Development Block Grant (CDBG) funding for the purpose of restoring public housing units. Alphonso Jackson stated that HUD intended the dollars to "restore these public housing units on at least a one-to-one basis."31
December 23, 2007
After a heated six-hour meeting, the New Orleans City Council votes unanimously to approve the demolition of the "Big Four" public housing developments.32
2008
HANO Receiver is Karen Cato-Turner.33
March 2008
Revitalization Grant
C.J. Peete redevelopment receives a federal HOPE VI Revitalization grant totaling $20 million.34
December 2008—January 2009
Demolition
C.J. Peete is demolished. The new HUD Secretary Steve Preston flies into New Orleans for the groundbreaking.35
Left: C.J. Peete site in 2006, following Hurricane Katrina; Right: C.J. Peete site in 2009, following demolition of all buildings (Google Earth)
August 21, 2009
Subcommittee on Housing and Community Opportunity Field Hearing on “The Status of the ‘Big Four’ Four Years After Hurricane Katrina.”
Late 2009
Technical Assistance and/or Professional Services Contract
David Gilmore of GILMORE KEAN LLC appointed receiver of HANO (still under HUD receivership) with an initial 9-month, no-bid, $2 million contract, followed by another $8 million contract.36
2011
Harmony Oaks, formerly C.J. Peete/Magnolia, opens.
Above: C.J. Peete site in 2011, at the opening of Harmony Oaks (Google Earth)
March 2012
Developers (JCH Development, Stirling Properties, and Central City Partners) purchase the leftover land from the CJ Peete site for $900,000 to develop Magnolia Marketplace. By 2013, the New Orleans City Council creates a special economic development district for Magnolia Marketplace, allowing the city council to become the legal governing authority for the marketplace. The city council approves a 1-cent sales tax to finance $2.3 million in bonds for construction, while $15 million in first mortgage debt and $5.5 million in developer equity cover other funds.37
June 30, 2014
HANO returns to local control.38
Magnolia Project at construction and site plan (1941) (Louisiana National Historic Register)
Magnolia Project, Courtyard (Louisiana National Historic Register)
Site Plan (Louisiana National Historic Register)
C.J. Peete after Hurricane Katrina (Wikipedia Commons, Infrogmation)
C.J. Peete after Hurricane Katrina (Wikipedia Commons, Infrogmation)
Harmony Oaks developed by MBS (McCormack Baron Management)
Harmony Oaks developed by MBS (McCormack Baron Management)
Harmony Oaks developed by MBS (McCormack Baron Management)