The village will include homes for musicians and a music center named for New Orleans pianist Ellis Marsalis, a teacher of many prominent local musicians.
Pianist and singer Harry Connick Jr., who studied with Marsalis, and saxophonist Branford Marsalis, Ellis Marsalis's son, are the honorary co-chairs of Habitat for Humanity's effort to rebuild in New Orleans.
"Music is as much a part of the fabric of life as the cuisine, the culture," Branford Marsalis said. "This plan, this village will help restore New Orleans' musical heritage, and protect it for the next generation that will follow.
Some of the money for the village will come from benefit concerts held at Madison Square Garden and Radio City Musical Hall in September and the sale of various benefit CDs.
In an interview with the Associated Press, a Habitat for Humanity official said that the location of the village had not yet been determined.