HUD Awards $40M to Lake Charles for Public Housing Redevelopment

A Major Federal Investment in Southwest Louisiana

The U.S. Department of Housing and Urban Development announced a $40 million grant to the Lake Charles Housing Authority to overhaul one of the city's most distressed public housing developments. The award, delivered through HUD's competitive Choice Neighborhoods Implementation program, is directed at the Lloyd Oaks-Dixie Drive family site in the Mid-City Neighborhood and is among the largest federal housing awards ever received by Southwest Louisiana.

U.S. Senator Bill Cassidy, M.D. announced the funding, describing the investment as a transformative step for a region still recovering from hurricane damage and longstanding housing shortages. The grant targets a 37-acre area that includes the Lloyd Oaks public housing community, Barbe Elementary School, and surrounding residential blocks bordered by Dixie Drive and Creole, Lake, and West 18th streets.

What the Choice Neighborhoods Grant Funds

HUD's Choice Neighborhoods Implementation program is designed to rebuild severely distressed public and HUD-assisted housing and, at the same time, invest in the surrounding neighborhood. In Lake Charles, the award will replace a 240-unit public housing site with a new mixed-income, mixed-use community of more than 550 units.

The grant supports three linked areas of work:

• Housing: demolition of the aging Lloyd Oaks site and construction of new affordable and mixed-income units.
• People: services for existing residents, including case management, job training, health, and education supports designed to prevent displacement and expand opportunity.
• Neighborhood: improvements to infrastructure, parks, schools, and nearby commercial corridors so that the surrounding Mid-City area benefits alongside the housing redevelopment.

HUD requires grantees to build a plan that integrates all three pillars, which is why the Lake Charles award is paired with a broader neighborhood transformation plan rather than a single apartment project.

Leveraging $270 Million in Additional Investment

The $40 million federal award is expected to leverage an additional $270 million in public and private investment across the redevelopment footprint. That leverage ratio is typical of Choice Neighborhoods projects, which combine HUD dollars with Low-Income Housing Tax Credits, state housing agency financing, local matching funds, and private capital from developers and lenders.

For Lake Charles, partners on the redevelopment include the Lake Charles Housing Authority, the City of Lake Charles, the Louisiana Housing Corporation, and private developer HRI Communities, which is leading construction on several of the replacement housing phases.

Why Lake Charles Was Chosen

Lake Charles has faced compounding pressures on its housing stock. Hurricanes Laura and Delta struck within weeks of each other in 2020, damaging or destroying thousands of homes and apartments. Rebuilding has been slow, and families with the fewest resources have borne the heaviest burden, including residents of older public housing like Lloyd Oaks.

The Choice Neighborhoods program weighs factors such as the physical condition of the existing housing, the severity of distress in the surrounding neighborhood, and the quality of the local transformation plan. Local officials credited years of planning work — including engagement with current residents and coordination through the Just Imagine SWLA regional resilience plan — with strengthening Lake Charles's application.

What Happens Next for Residents

Choice Neighborhoods requires a one-for-one replacement of hard public housing units and a right to return for current residents in good standing. That means families living at Lloyd Oaks at the time of the award are entitled to relocation assistance during construction and the option to move into the new development once units come online.

The redevelopment is being built in phases. Early phases include new mixed-income rental housing in the Mid-City footprint, with additional phases expected to bring homeownership opportunities, neighborhood retail, and public space improvements over the life of the grant.

A Long-Term Commitment

Choice Neighborhoods Implementation grants are typically spent over six to eight years, with construction, services, and neighborhood investments rolling out in stages. For Lake Charles, the award marks the beginning of a long-term partnership with HUD rather than a one-time check — and a rare opportunity to reshape a neighborhood that has been underserved for decades.