This word is short for Magnolia. Used commonly as street slang meaning Magnolia Projects, a government housing complex know for drugs, violence, and killings. The word nolya is mentioned in numberous rap songs and is a spectacle of new orleans stret culture. This would go hand in hand with comeone abbreviating New Orleans as NOLA.
"hey what you doin friday night"
"Ill be chilin in the NOLYA"