LHC Board Approves Resolutions to Expand Affordable Housing Across Louisiana
More than $194 Million Will Be Used to Increase Homeownership and Rental Opportunities
BATON ROUGE, LA — On Wednesday, November 8, 2017, the Louisiana Housing Corporation (LHC) Board of Directors approved more than $194 million to expand affordable housing opportunities statewide. The Board unanimously approved five resolutions that aim to make homeownership and renting more affordable.
LHC is investing $161 million in new and expanded bond issuance, tax incentive, and soft second mortgage programs to provide cost-savings opportunities to first-time homebuyers. An additional $33.8 million will be used to produce and preserve affordable multi-family rental properties in designated areas impacted by disaster.
”It is a great day for the citizens of Louisiana,” said LHC Executive Director Edselle Keith Cunningham, Jr., following the November board meeting. ”We are extremely proud to provide even more housing opportunities that enhance the quality of life for working families, veterans, senior citizens, and people with disabilities in Louisiana. The funding made available today will significantly expand Louisiana’s housing stock and address unmet housing needs – especially in areas stricken by disaster.”
Highlights from the meeting included the following board approvals:
Single Family Mortgage Revenue Bonds (MRBs)
$36 million in MRBs to help finance mortgage loans for first-time homebuyers through below market interest rate mortgages. Through the MRB program, LHC has the ability to help borrowers who might otherwise be unable to afford a home.
Mortgage Credit Certificate (MCC)
$20 million to continue the MCC program that enables first-time homebuyers and veterans to claim an annual tax credit of up to $2,000. The MCC program can be used in conjunction with available grants for down payment assistance and closing costs.
Community Development Block Grant (CDBG)/To Be Announced (TBA) Homeownership Program
$5 million of CDBG funds, paired with existing TBA program, to create a homeownership program that provides soft second loans and closing cost assistance for first-time homebuyers in the 49 designated parishes impacted by Hurricanes Gustav and Ike.
Single Family Convertible Option Bonds
$100 million in issuance of Convertible Option Bonds to preserve state volume cap and finance mortgage loans to eligible first-time homebuyers in targeted areas statewide.
CDBG Piggyback Disaster Recovery Gap Funding
$33.8 million in CDBG Piggyback Disaster Recovery Gap Funding to create and preserve multi-family rental properties in the areas affected by the 2016 Floods.
For more information about LHC homeownership and rental programs, visit www.lhc.la.gov or call (888) 454-2001.
About Louisiana Housing Corporation:
The Louisiana Housing Corporation was created by Act 408 of the 2011 Louisiana Legislative Session. The Corporation administers federal and state funds through programs designed to advance the development of safe, energy-efficient and affordable housing for low-to-moderate income families.
Louisiana Housing Corporation
Director of Public Affairs