HUD Secretary Donovan Joins Former Residents and Elected, Housing Officials to Celebrate...

HUD Secretary Donovan Joins Former Residents and Elected, Housing Officials to
Celebrate Groundbreaking at Former Lafitte Community
Work Begins at Former Public Housing Site As Katrina Anniversary Nears

NEW ORLEANS, Aug. 27 /PRNewswire/ -- U.S. Housing and Urban Development (HUD)
Secretary Shaun Donovan, city leaders, housing officials, former residents and
other community members today celebrated the groundbreaking for the first
phase of redevelopment at the former Lafitte public housing site. This first
phase of the development plan includes 134 on-site affordable rental units to
be completed by December 2010 and 47 on-site affordable homeownership units to
be completed by March 2011. When finished, the project will offer a mix of
1,500 affordable and market-rate housing units.

HUD and the Housing Authority of New Orleans (HANO) selected Providence
Community Housing and Enterprise Community Partners, two nonprofit, affordable
housing organizations, to plan and develop a new community on and around the
site of the original Lafitte development, a 27.5 acre parcel in the historic
Treme/Lafitte neighborhood of New Orleans. New York-based L+M Development
Partners also joined the development team with Capital One Bank providing
equity and permanent financing for the first 134 rental homes.

"Capital One Bank is very pleased to be a part of the collaborative effort
that is making the Lafitte Redevelopment possible," said Laura Bailey, Capital
One Bank's managing vice president for Community Development Finance. "Capital
One is committed to investing in the recovery of greater New Orleans and
helping this community grow and thrive."

Additional financing includes $27 million in Community Development Block
Grants (CDBG) from a pool of federal disaster recovery funds administered by
the Louisiana Recovery Authority/Office of Community Development, $10 million
in Capital Grant Funding from HANO to secure the construction of the 47
homeownership units and $12.8 million in Gulf Opportunity Zone Low Income
Housing Tax Credits from the Louisiana Housing Finance Agency. The homes will
also be built in accordance with the Enterprise Green Communities Criteria,
incorporating healthy and energy-efficient building practices, materials and
systems.

"We are grateful for all our partners, most especially the resident leadership
who have worked with us from day one to plan, develop and now construct a New
Lafitte -- a healthy, vibrant community filled with hope," said James R.
Kelly, president and CEO, Providence Community Housing.

"Our goal is to help restore a vital part of the Treme neighborhood by
providing a spectrum of housing both rental and homeownership to help
stabilize the community," said Ron Moelis, CEO of L +M Development Partners.
Vice President Lisa Gomez added, "As a Louisiana native, I'm proud to be part
of a team that is committed to positive change in the city."

The overall Lafitte community will be constructed around existing schools,
emphasizing education as the bedrock of the neighborhood. The redevelopment
will also restore the historical street grid that was erased when the original
housing development was built. The restoration will allow for easy access to
the surrounding areas and will reconnect residents to essential supportive
services, particularly those now offered at the reopened Sojourner Truth
Community Center.

"Today marks an important milestone in fulfilling our commitment to replacing
every Lafitte apartment with a healthy, energy-efficient and affordable home
so that all former Lafitte residents who would like to return to this
community have the opportunity to do so," said Doris Koo, president and CEO of
Enterprise Community Partners. "This accomplishment was made possible by
steadfast partnerships that remained dedicated even in these difficult
financial times. We look forward to continuing our part in the transformative
rebuilding of New Orleans."

The design relies on classic New Orleans Creole architecture with high quality
construction standards that visually blend in with the neighboring
communities. Homeownership and rental housing properties will be interspersed
throughout the site to ensure a complete mixed-income neighborhood with all
housing -- regardless of income -- indistinguishable from one another.
Low-income families will be absorbed within a truly vibrant community to
support efforts towards self-sufficiency -- while creating a stable,
self-sustaining community that is a safe, attractive place to live.

SOURCE Enterprise Community Partners, Inc.

Terri Bolling of Enterprise Community Partners, Inc., +1-443-838-9165,
tbolling@enterprisecommunity.com