History of the EBRMFA
The Authority was created through a Trust Indenture dated Aug. 14, 1974, pursuant to provisions of the Louisiana Revised Statutes of 1950, as amended. The initial legislation and subsequent amendments grant the Authority the power to issue bonds and to use the proceeds to provide financing for housing conducted in the public interest within the boundaries of East Baton Rouge Parish, Louisiana.
Bonds issued by the Authority are special obligations of the Authority and are not obligations of the State of Louisiana or any other political subdivision thereof. Since 1979, the Authority has issued $1.305 billion in single-family mortgage revenue bonds, which ranks the Authority 3rd nationally in volume of bonds issued and 3rd nationally in number of issues completed when compared to other parish and/or county issuers of single-family bonds. The Authority is self-supporting and has never received any appropriation of funds from any governmental agency.
The Authority has made a major contribution to home ownership and economic development in East Baton Rouge Parish by providing more than $935 million in below conventional market rate funds to more than 15,000 low- and moderate-income households.
Under each of its single-family mortgage lending programs, the Authority utilizes Baton Rouge area financial institutions to originate the mortgage loans acquired. The Bank of New York serves as the Authority’s bond trustee of the separate bond programs for bonds closed through Dec. 31, 2006. Regions Bank serves as the Authority’s bond trustee of the bond issues closed during the first quarter of 2007.
In 1995 the Authority began to further assist homebuyers in purchasing their first home by offering funds of 3 percent to 4 percent of the original loan amount to be used toward the borrower’s closing cost and down payment. Of the 5,773 loans made since 1995, 4,488 (77.74%) of those mostly first-time homebuyers received such down payment and closing cost assistance.
In 2006, the Authority extended its program to homebuyers who have previously owned a home. The change was made possible due to a change in federal policy enacted following Hurricanes Katrina and Rita in 2005.