On November 8, the Louisiana Housing Corporation Board of Directors decided to invest an additional $33.8 million to produce and preserve affordable multi-family rental properties in designated areas impacted by disaster. The CDBG Piggyback Disaster Recovery Gap Funding creates and preserves multi-family rental properties in the areas affected by the 2016 Floods.
The Board also approved an additional $161 million towards homeownership opportunities:
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.
