Background
The Louisiana Public Facilities Authority, through F.R.E.E.D.O.M./Vision Financial Services and other key agencies, has contacted and met with scores of housing professionals and with members of civic, non-profit, state, county and local governmental agencies, and for-profit organizations to determine the need in the community for a market rate mortgage product which could meet the needs of credit-impaired borrowers and borrowers who lack the downpayment funds for existing conventional loan products. Additionally, several key area studies of Louisiana provided extensive reviews of available data sources and examined public research reports that addressed housing issues in the State. The Organizations conducted interviews with numerous public, private, civic and governmental agencies within Louisiana to examine the specific need for new affordable housing solutions and trends. Based on these inquiries, the Freddie Mac Lease Purchase Plus program structure will meet the needs of many low-to-moderate income families.
Program Summary
The LouLease Program, managed by F.R.E.E.D.O.M. affiliate Vision Financial Services and sponsored by Louisiana Public Facilities Authority (LPFA) is an outgrowth of the activities that Freddie Mac has been engaged in to assist low-to-moderate income families and individuals to obtain decent affordable housing. Based on the Freddie Mac Lease Purchase Plus Program, First Commonwealth Management will serve as the Program Compliance Agent with oversight of the Property Management, Marketing, Outreach Buyer Preparation and Lease Servicing. The LPFA will issue the governmental bonds and with the proceeds purchase the homes on behalf of the participating families. In that capacity LPFA being the owner and initial borrower on the Freddie Mac mortgage. First Nationwide Mortgage Corporation serve as the Master Servicer, and a number of other local parties, including the Louisiana Association of Community Economic Development (LaCED) and the Louisiana Federation of Housing Counselors (LFHC), familiar with the requirements of the Freddie Mac Lease Purchase Plus program will participate as well.
Program Purpose
The purpose of The Louisiana Lease Purchase Program (LouLease) is to address the homeownership needs of low-income, minority, immigrant and other working families in the State of Louisiana who may have marginal credit or no credit, and who lack the down payment needed to acquire a home mortgage at competitive market interest rates. The program will focus on low and moderate-income families purchasing existing homes throughout the state, wherever affordable housing can be found and/or developed. This program will serve the homeownership needs of over 500 families statewide over a two-year initial offering period.
