Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Affordability topic
No spam. Unsubscribe anytime.
Parish OKs cooperative agreement to issue bond for first-time homebuyer assistance
Summary
Livingston Parish approved a cooperative endeavor allowing Capital Area Finance Authority bond issuance to fund down-payment assistance for first-time homebuyers and veterans through a local program.
The Livingston Parish Council unanimously approved a cooperative endeavor with the Capital Area Finance Authority (CAFA) on May 8 that will allow issuance of revenue bonds to fund down-payment assistance for first-time homebuyers and veterans.
Bridget Homer, a program representative, told the council the local program had exhausted its previous funds and that issuing a bond creates a pool of funds the program can control. She said the program can offer down-payment assistance equal to 5 percent of the final loan amount and noted the bond interest rate being targeted was about 6.58 percent compared with market rates she said were near 7.75 percent.
Council members asked about cost and interest-rate impact; Homer said the bond stabilizes the available rate for borrowers and reduces uncertainty caused by daily rate fluctuations. The motion to authorize the cooperative endeavor and permit a new bond issuance passed unanimously.
Why it matters: The bond-funded pool would restore a local down-payment assistance program aimed at helping first-time buyers and veterans close mortgage transactions with smaller out-of-pocket costs. Officials said there is no direct financial risk to the parish; the structure uses a finance authority and revenue bonds.
What’s next: Parish staff and program administrators will proceed with bond issuance and related agreements through CAFA and lenders offering the assistance.
