Caddo Parish has received program revenue from an agreement with Capital Area Finance Authority (CAFA) which was executed Mar.1, 1991.
The CAFA agreement's term ended Dec. 31, 2020, and it now continued on 30-day monthly basis.
CAFA provides mortgage programs for low to moderate income borrowers of the Parish.
These programs are NOT limited to first time home buyers.
CAFA's Grant Programs provide qualified homebuyers with funds that can be used for down payment, closing costs, prepaid items and for assistance with private mortgage insurance.
CAFA has programs in 44 other parishes.
CAFA works with area mortgage companies who handle borrower intake, loan processing and funding.
CAFA shares 50% of its "net fees "with the Parish. "Net Fees" is not defined in the contract.
Over 425 families in the parish have benefitted from the CAFA Home Buyers Program.
The parish has been paid over $22,000 this year and $130,000 since the program's inception.
Using 425 mortgages as a basis, the Parish receives a little over $300 in fees per loan.
Although the total of $130 thousand to the Parish is a substantial sum standing alone, it is very minuscule compared the parish annual budget of approximately $80 million.
The estimated $300 fee per mortgage loan paid to the parish is a significant amount too low to moderate homebuyers, especially to low-income first-time home buyers.
The Commission should review the CAFA agreement and inquire as to the total average closing cost paid by CAFA borrowers, and all sums received by CAFA from these loans. Additionally, the Commission should carefully consider waiving its 50% fees, dedicating these moneys to the CAFA borrowers to provide easier home ownership.