Capital Funding Projects
CAFA offers financing options for qualified economic redevelopment projects that benefit communities and neighborhoods in the Capital Area Parishes. Qualified projects include new construction, renovation, public works projects, water and wastewater infrastructure, industrial facility development, civic center/social services facilities, historic preservation, hospitals, healthcare facilities, and nursing homes.
Eligible Categories for Public Purpose Financing Included, but are not limited to:
Hospital, medical and other health facilities
Housing
Correctional Facilities
Educational facilities and related housing and dormitory facilities
Water storage, treatment, supply, and distribution facilities and services
Sanitary and storm sewer and other related facilities
Educational or commercial communication equipment and facilities
Transportation and related services
Cultural and civic facilities
Community development and redevelopment facilities
Energy collection, recovery, generation, storage, transportation and distribution facilities
Industrial, manufacturing and other economic development facilities
Antipollution control facilities
Airport and water port and related facilities
Process for approval for public purpose financing
A project summary must be presented to the President and CEO. Developers can submit an executive summary here.
After a review of the project is completed by the President & CEO, if there is interest in the project, a formal application is made to the New Initiatives Committee of the Board of Trustees.
If the New Initiatives Committee is interested in progressing with the Project, a formal application must be prepared by the Project Developer and submitted for approval to the full Board of Trustees. Developers can request a sample application by contacting CAFA. The actual application may vary slightly from the sample depending on the nature of the project. The appropriate application will be provided to the developer after the approval of the New Initiatives Committee.
CAFA Development Tools/Incentives
A PILOT has the effect of lowering the operating costs of a project during the term of the PILOT by reducing the amount of local property taxes paid by the development. For a PILOT to occur, CAFA must be the owner of record of the property and the improvements to the property. This public ownership is what allows the property to be exempt from local property taxes. LA R.S. 51:1160 allows CAFA to negotiate a PILOT in an amount up to what the ad valorem taxes would have been if CAFA did not take title to the subject property and the improvements thereon. The PILOT must be approved by resolution of the parish governing authority whose jurisdiction includes the development.
CAFA leases back the property to the developer for the duration of the PILOT (usually 15-20 years). CAFA requires that a PILOT Administrative Fee be paid annually through the execution of a Memorandum of Understanding (MOU). The PILOT Administration Fees paid to CAFA must be included in the cost of operation of the development.
Upon completion of the PILOT term, CAFA deeds the property and improvements back to the developer. At that time the local property taxes calculated on the value of the improved property will take effect. It may be beneficial for a developer to phase in the increased property tax requirement over the last few years of the PILOT term.
To Obtain a PILOT Application, contact our President/CEO, Mark Drennen.
Projects may also apply for a sales tax exemption for construction materials. Public ownership of the property by CAFA is what allows the construction materials to be exempt from State and Local sales taxes. CAFA is required to designate a Contractor chosen by the developer as its Agent for the purpose of making sales tax-exempt purchases on its behalf. CAFA will handle all administrative aspects required to obtain this exemption.
CAFA requires that a portion of the sales tax savings be remitted to CAFA in an amount negotiated through the execution of a Memorandum of Understanding (MOU).
To request a Sales Tax Exemption Application, contact our President/CEO, Mark Drennen.
CAFA may act as an issuer of taxable or tax-exempt bonds through either public sale or private placement. Developers can request a sample application here. The actual application may vary slightly from the sample due to the nature of the project.
CAFA may act as a conduit issuer of tax-exempt or taxable private activity bonds for private use, within the confines of CAFA’s Trust Indenture and Public Trust Laws, such as financing of infrastructure for a development.
Request a sample application here. The actual application may vary slightly from the sample due to the nature of the project.
Construction Loans for short-term financing are available for a new house or rehab or other real estate development projects before long term financing is available. Such loans must be within the confines of CAFA’s Trust Indenture and Public Trust Laws and in keeping with CAFA’s Mission. Terms and conditions are negotiated and may differ by project type. Developers can request more details and application forms here.
Line of Credit – CAFA will consider a line of credit for a maximum amount for a set period of time for projects within the confines of CAFA’s Trust Indenture and Public Trust Laws and in keeping with CAFA’s Mission. Terms and conditions are negotiated and may differ by project type. For more details or to request application forms, contact our President/CEO, Mark Drennen.
Other Capital Funding Resources in our Nine-Parish Region:
East Baton Rouge, West Baton Rouge, East and West Feliciana, Iberville, Pointe Coupee and St. Helena.
Louisiana Government
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Visit Site: https://www.louisiana.gov.