The Capital Area Finance Authority (CAFA) in Baton Rouge recently announced that it has increased their involvement and desire to contribute to the development of the Baton Rouge community. As of 2015, the East Baton Rouge Mortgage Finance Authority has officially changed its brand and classification in order to obtain increased financial responsibility and capabilities through evolving into the Capital Area Finance Authority in efforts to heighten regional expansion efforts. The mission of this CAFA entity is to extend and enhance structured loans and financing for local businesses, apartment structures, and other government entities or projects. Ultimately, the CAFA mission for Baton Rouge is to increase its overall economical development, decrease lost funds otherwise tied up in floating business deals, and offer both business owners and residents the financial ability to pursue and obtain more realistic loans for purchasing their homes or an apartment within condominium establishments.
The mortgage finance authority has been committed to developing loans for housing opportunities associated with low to medium income families in the Baton Rouge and Parish areas for many years. This most recent increase of authority and responsibility will allow CAFA to broker deals with at least 8 surrounding parishes within Baton Rouge. Additionally, opportunities such as financing and developing hospitals, academic institutions, public, and even industrial facilities are also prospective funding projects in developmental and application phases.
Mike Airhart, the executive director of CAFA, has stated that such an increase of responsibility and relationship with local businesses, residents, and government institutions will be reinforced by binding relationships between elected (government) officials both locally and nationwide. In exploration of governmental contracts, Mr. Airhart reflected on the potential benefits and possibilities of linking mortgage options and financing with the local prison systems and highways in addition to already present financial institution endeavors. This type of developmental structuring within an organization demonstrates its willingness to give back to the community. Promoting these businesses and individuals offers an opportunity to ‘stay afloat’ during arguably hard economic times by supporting the community and generating a prospective financial revenue, as well as restructuring its cities local and vital entities for operation.
CAFA as a whole, specifically in Baton Rouge, will serve as a financial issuing agency in which it markets loan proposals and financial agreement propositions to secondary financial markets. CAFA has expressed that through its relationships between the government, local residents, and businesses that it is confident in its ability to develop a stronger bond and availability of resources to said interested party(s) in expanding projects, homes, and businesses.
Most recently, CAFA in Baton Rouge partnered for an equity agreement to finance the development of The Palms at Juban Lakes. This project cost a little over $22.2 million and reflects the stability and integrity of this organizations willingness to develop new residential projects. This also demonstrates the ability of CAFA to secure financial resources, tools, and appropriate mortgage financing as it prides itself on the ability of doing such for the local community and surrounding areas.
Statistics show that as of 1979, CAFA has contributed to the issuing of over $1.3 billion dollars in revenue bonds that are structured for at-risk or lower income single-family homes and apartment complex units. This to-date has stimulated the development of over 16,000 Eastern Baton Rouge homes.
While CAFA continues to step up its efforts to minimize loss, and capitalize on providing the local community and government with contracts, there is no definitive measure as to how long it could take for additional businesses and political leaders to get on board, or otherwise give CAFA more of an opportunity to assess, allocate, and support mortgage financing for various projects.