Labor joins forces with Mayor Nagin and local and national civic, religious, financial and academic organizations to address New Orleans/ Gulf Coast Housing Crisis

AFL-CIO President John Sweeney, flanked by New Orleans Mayor Ray Nagin, Building and Construction Trades Department-AFL-CIO President Edward C. Sullivan, International Longshoremen’s Association Local 3000 President James O. Campbell, Steve Coyle, Chief Executive Officer of the AFL-CIO Housing Investment Trust and a broad contingency of New Orleans labor, civic, religious, financial, and academic leaders, today announced the AFL-CIO Gulf Coast Revitalization Program, a seven-year, $1 billion housing and economic development program. The Program is designed to produce affordable housing, promote homeownership, and create good jobs with good wages in construction and other industries for New Orleans and other coastal communities ravaged by Hurricane Katrina last year.

“Labor is in solidarity with the citizens of New Orleans,” stated President Sweeney. “We are here to do our part to rebuild and reunite this great city. I am proud to stand with my brothers and sisters to announce this very first significant investment by labor in the rebuilding of this city. We hope business and financial institutions will follow our lead as they did when we stepped forward after 9/11 in New York City.”

“Thousands of our people have been scattered by the wrath of Katrina,” said Mayor Nagin. “We want them back home and we must provide the affordable housing, jobs and community services to make that happen. Labor is stepping forward in a big way to help us make this difficult job an attainable reality.”

Adding to today’s announcement, President Sullivan of the Building and Construction Trades Department, AFL-CIO said that his organization is establishing a Gulf Coast Workforce Development Project to meet the anticipated demand for skilled workers. It is anticipated that this Project will create new employment and training opportunities in the construction industry for Gulf Coast residents. The Project will build a stronger union presence in the New Orleans and Gulf Coast region, while providing job skill training for residents wishing to return to the area.

Joining Sweeney, Nagin, Sullivan, Campbell and Coyle in announcing the Gulf Coast Revitalization Program were AFL-CIO Secretary-Treasurer Richard Trumka; AFL-CIO Executive Vice President Linda Chavez-Thompson; Greater New Orleans AFL-CIO President Robert “Tiger” Hammond; Southeast Louisiana Building and Construction Trades Council President Donald Denese and Executive Secretary Joseph Bertucci; Louisiana AFL-CIO President Louis Reine; Mike Arnold, Secretary-Treasurer of the AFL-CIO Investment Trust Corporation; James R. Kelly, CEO of Catholic Charities Archdiocese of New Orleans; Charlotte Bourgeois, Chief Operating Officer of Catholic Charities of New Orleans; Phil Thompson, Associate Professor of Urban Politics at Massachusetts Institute of Technology; Reed Kroloff, Dean of Tulane School of Architecture; and Rev. Michael P. Jacques of the Society of St. Edmund, Pastor of St. Peter Claver Church.

The billion dollar investment initiative will be carried out by three labor-backed investment and financial service organizations – the AFL-CIO Housing Investment Trust (HIT), the AFL-CIO Building Investment Trust (BIT) and the AFL-CIO Investment Trust Corporation (ITC). Both the HIT and BIT invest Taft-Hartley and public employee pension funds in housing and economic development projects nationwide to seek competitive returns for their participants. The ITC provides marketing, investor relations and investment development services for the BIT. All construction projects financed by the HIT and BIT are built with 100% union labor.

Key components of the AFL-CIO Gulf Coast Revitalization Program:

· Multifamily Housing: $250 million in direct financing to be provided by the HIT for the production or rehabilitation of housing. This significant financial investment will seek to build or renovate 5,000 to 10,000 housing units, both in New Orleans and other Gulf Coast communities, and is expected to leverage an additional $150 million from other public and private sources. Special emphasis will be given to affordable housing, and workforce and special needs housing, as well as worker training programs in the building and construction trades.

· Commercial and Economic Development: $100 million in direct investment by the BIT for commercial real estate development in New Orleans and other Gulf Coast cities. BIT investments will seek to focus on hotels and other economic development projects that create jobs in construction and services. These investments are expected to leverage an additional $150 million. The ITC will also explore the feasibility of alternative housing solutions, such as manufactured and modular housing.

· Health Care and Hospital Facilities: In conjunction with other partners, the HIT will seek to invest $100 million in health care facilities and hospital construction. These investments will help reduce the significant shortage of health care facilities in the region.

· Homeownership: $250 million will be designated through the HIT’s successful HIT HOME mortgage program to enable union members and public employees to purchase homes throughout the region. In addition, HIT will work with local Community Development Corporations on innovative homeownership programs for low-income families such as limited equity co-ops and the Section 8 program.

· A Long-term Commitment: Demonstrating its long-term commitment to the region, the ITC has leased office space at 1100 Poydras Street, Suite 2870, in downtown New Orleans. Experienced staff will work with the City and other labor, financial and community organizations throughout the Gulf Coast region to carry out the investment program. Since September 2005, HIT, BIT and ITC staffs have spent thousands of hours in the region assessing the critical housing needs of local communities and developing ties with local governments and community organizations. Groups working with the AFL-CIO Gulf Coast Revitalization Program to help make it a success include: Building and Construction Trades Department, AFL-CIO; Southeast Louisiana Building and Construction Trades Council, AFL-CIO; Catholic Charities of New Orleans; Enterprise Community Partners, Inc.; Massachusetts Institute of Technology School of Urban Studies and Planning; NeighborWorks; Providence Community Housing; Tulane School of Architecture, and the Resource Foundation.

As part of the commitment to the region, the ITC last week joined with Providence Community Partners – a group comprised of the Catholic Charities Archdiocese of New Orleans, Christopher Homes, and three community development corporations, Reconcile New Orleans, Tulane/Canal Community Development Corporation and UJAMAA Community Development Corporation – to submit a proposal to the City of New Orleans for redevelopment of 196 abandoned adjudicated properties in Tremé and Tulane/Gravier that are available for single and multifamily development.

“Labor plays a vital role in the social and economic life of our community” said Tiger Hammond, President of the New Orleans AFL-CIO. “What Katrina destroyed, we will help to rebuild. Our neighborhoods have been destroyed, our citizens scattered, but our spirit and resolve are strong. This is a great program for this city, our communities and our workers.” Hammond mentioned that the local AFL-CIO will also play a role in supporting the labor sponsored training programs for young people seeking jobs in the building and construction trades.

The AFL-CIO Housing Investment Trust (HIT) is a core-plus, fixed-income investment company registered with the Securities and Exchange Commission. The HIT has over 400 investors and approximately $3.5 billion in assets. The HIT invests primarily in fixed-income investments such as multifamily and single family mortgage-backed securities. While the investment objective of the HIT is to provide competitive returns for its investors, it also seeks to promote collateral objectives such as the construction of housing and to facilitate employment for union members in the construction trades and related industries. The HIT has invested over $5 billion to finance more than 80,000 units of housing nationwide generating thousands of union jobs. For more information, visit the AFL-CIO Housing Investment Trust website at www.aflcio-hit.com.

The AFL-CIO Building Investment Trust (BIT) is a $2 billion pooled real estate fund serving pension plans with union member beneficiaries. It is managed by Mercantile-Safe Deposit and Trust Company, Trustee. The mission of the BIT is to provide competitive risk-adjusted returns for its participants through its investments in institutional quality commercial real estate while promoting economic development and creating union jobs. Since its inception in 1988, the BIT has helped finance over $2 billion in real estate development across the United States. For more information, visit the AFL-CIO Building Investment Trust website at www.aflcio-bit.com.