Capital Area Finance Authority

What Capital Area Finance Authority does

Capital Area Finance Authority (CAFA) is a Louisiana public finance authority originally created in 1974 as the East Baton Rouge Mortgage Finance Authority and rebranded in 2014-2015 to reflect its broadened scope. It operates as a self-supporting quasi-governmental entity, receiving no government appropriations, and is governed by a board of directors with a small executive team led by President & CEO Mark Drennen (appointed October 2017) alongside an EVP, a Director of Homeownership, and a Project Manager.

CAFA's core function is the issuance of tax-exempt mortgage revenue bonds and related financing instruments to support first-time homebuyer mortgage programs and economic development projects. Its single-family mortgage suite comprises five programs — CAFA First Home, Renovation Loan, GO Zone, Mortgage Credit Certificate, and MCC/Tax Credit Combination — delivered through a network of 100+ approved lenders and 300+ certified realtors. Its economic development mandate spans multifamily housing, industrial projects, retail, healthcare, education, public facilities, civic/recreation, mixed-use developments, and office projects, financed through single-family, public facilities, industrial development, higher education, 501(c)(3) nonprofit, public leasing, and healthcare bond structures.

Since 1979, CAFA has issued $1.305 billion in bonds and served more than 15,500 households, with service territory expanded from the original 9-parish footprint to all 61 Louisiana parishes. Revenue is generated through fees and spreads on bond issuance and program administration rather than appropriations. As of May 2026, the flagship CAFA First Home Program exhausted its allocated funds and was paused, creating both a demand-validation signal and a near-term capacity constraint.

Name

Capital Area Finance Authority

Legal name

Capital Area Finance Authority

Website

https://thecafa.org

Company type

Private

Founded year

1974

Operating status

Operating

Headcount range

1–10 employees

Short description

Capital Area Finance Authority is a Louisiana public finance authority that issues tax-exempt mortgage revenue bonds and economic development financing across all 61 parishes, serving first-time homebuyers, lenders, realtors, and municipal/institutional bond issuers.

Ownership category

akta.pro rank

Product category

Public Finance Authority Services

SIC

Federal & Federally-Sponsored Credit Agencies (6111)

akta.pro primary industry

Affordable Housing / Down Payment Assistance (DPA) Mortgage Origination (FSALAAAM)

akta.pro secondary industries

National Housing Finance Agencies & Ministries (FSALAKAB), Agency (GSE) Multifamily Lending (FSALADAD), Municipal/Local Government Development Banks (FSABAKAI)

Keywords

• Mortgage revenue bonds
• Down payment assistance
• Affordable housing financing
• Economic development bonds
• Conduit bond issuance

Headquarters

HQ city

Baton Rouge

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Infrastructure, Technology or R&D

Revenue model

1. Bond Issuance Revenue: CAFA issues tax-exempt and taxable mortgage revenue bonds. Bond proceeds fund below-market mortgages and down payment assistance for qualifying homebuyers. CAFA is self-supporting and has never received governmental appropriations. Revenue sustains operations, bond servicing, and program administration.
2. PILOT Administrative Fees: CAFA charges an annual PILOT Administration Fee paid by developers through a Memorandum of Understanding, included in project operating costs. Revenue from enabling property tax exemptions for multi-family housing developments.
3. Sales Tax Exemption Administration: CAFA retains a negotiated portion of sales tax savings realized by developers on construction materials (exempt due to CAFA's public ownership), remitted through MOU agreements.
4. Bond Issuance Fees: CAFA acts as a conduit bond issuer for private developers and public entities, earning issuance fees on bond transactions for healthcare, correctional, educational, mass transit, cultural/civic, industrial, and other public-purpose facilities.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

CAFA is a public finance authority that issues tax-exempt mortgage revenue bonds to provide below-market-rate 30-year fixed-rate mortgages and down payment assistance grants to low and moderate-income first-time homebuyers across Louisiana. It also serves as a conduit issuer for economic development projects and multi-family housing developments, partnering with developers, government entities, and non-profits to finance affordable housing and community development initiatives.

Product overview

Capital Area Finance Authority (CAFA) is a housing finance authority offering a portfolio of mortgage programs and economic development financing across Louisiana. The core product suite consists of five mortgage programs: CAFA First Home (currently on hold), CAFA Platinum, Capital Advantage Program, Capital Advantage Program-PLUS, and the Eustis Edge Program. These programs provide 30-year fixed-rate mortgages with integrated down payment assistance grants ranging from 0-6% of loan amounts. CAFA also provides economic development financing including multi-family housing development partnerships, PILOT arrangements, sales tax exemptions for construction materials, and bond issuance services for public and private development projects. The organization serves homebuyers through a network of approved lenders across 61+ Louisiana parishes.

Differentiator

Problem solved

Functional benefit

Brands

• CAFA First Home: First-time homebuyer program providing down payment assistance and mortgage financing
• CAFA Platinum
• Capital Advantage Program
• Capital Advantage Program-PLUS
• Eustis Edge Program
• Hometown Heroes

Products and services

• CAFA First Home Program A first-time homebuyer mortgage program providing below-market 30-year fixed-rate financing to low and moderate-income households, accessed through CAFA's approved lender network.
• CAFA Platinum A mortgage program tailored for public safety personnel (law enforcement officers, firefighters, teachers, and military), offering enhanced terms layered on top of CAFA's first-time homebuyer benefits.
• Capital Advantage Program A CAFA mortgage program offering below-market fixed-rate financing to eligible first-time homebuyers in Louisiana through the approved lender network.
• Capital Advantage Program-PLUS An enhanced tier of the Capital Advantage mortgage program offering additional benefits for eligible first-time homebuyers in Louisiana.
• Eustis Edge Program A CAFA mortgage program offering a distinct set of financing terms for eligible first-time homebuyers in Louisiana, delivered through approved lenders.
• Economic Development Financing Tax-exempt bond issuance and financing services for government entities, non-profits, and developers pursuing economic development projects across Louisiana.
• Multi-Family Housing Development Tax-exempt bond financing and program administration for developers and non-profits building affordable multi-family rental housing in Louisiana.
• Bond Issuance Services Public-finance bond issuance services in which CAFA serves as a conduit issuer of tax-exempt mortgage revenue and economic development bonds on behalf of lenders, developers, and government entities.

Quantifiable outcome

• Over $1 billion in below-conventional-market-rate funds provided to more than 15,500 low- and moderate-income households since inception
• +5 more outcomes

Named customers11 records

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature8 records

Partnerships

16 partnerships are on record, tiered minor, standard and key.

• Young Entrepreneurs Academy of Baton Rouge (YEA BR)minorStrategic or Co-development Partner · 5 August 2020CAFA awarded a grant to YEA BR providing seed funding to student entrepreneurs in grades 8-12. Supports CAFA's mission to be a positive catalyst for community building and regional growth. Previous class: 26 students launched 21 businesses with $25,000 in seed funding.
• A-1 MortgagestandardChannel Partner/ Reseller/ DistributorOne of 100+ approved lenders that originate CAFA mortgage programs. CAFA does not lend directly; all mortgages are originated through approved lenders who market CAFA programs to homebuyers.
• Regions BankstandardChannel Partner/ Reseller/ DistributorApproved lender and serves as bond trustee for CAFA bond issues closed during the first quarter of 2007. One of many approved lenders originating CAFA programs.
• The Bank of New YorkstandardChannel Partner/ Reseller/ DistributorServes as CAFA's bond trustee for bonds closed through December 31, 2006.
• Eustis Mortgage CorpkeyChannel Partner/ Reseller/ DistributorTop-performing approved lender for CAFA programs in 2024. Co-developed the Eustis Edge Program — a CAFA-sponsored product providing up to 6% forgivable 2nd lien loans. Tracey Goins named top loan originator for January 2025 through Eustis.
• Guild MortgagekeyChannel Partner/ Reseller/ DistributorTop-performing approved lender for CAFA programs in 2024. Mary Hickingbottom named top loan originator for 2024 through Guild Mortgage.
• Loan DepotkeyChannel Partner/ Reseller/ DistributorTop-performing approved lender for CAFA programs in 2024. Lakisha Russell named top loan originator for 2024 through Loan Depot.
• GMFS, LLCkeyChannel Partner/ Reseller/ DistributorLaunched CAFA's first mortgage loan program with down payment assistance in 2015. Program provides homebuyer grants of 3% of loan amount for down payment or closing costs. Available through mortgage brokers, correspondents, credit unions, and banks.
• US Bank (eHousing)standardTechnology or IntegrationTechnology platform powering the Capital Advantage Program via eHousing. US Bank processes CAFA's Capital Advantage Program with no additional bond or compliance packages required.
• LDG CorporationkeyStrategic or Co-development PartnerDeveloper partner for Drakes Landing Apartments — a 216-unit multi-family development in North Baton Rouge. CAFA provides financing and PILOT arrangement for the project.
• Gulf Coast Housing PartnershipkeyStrategic or Co-development PartnerDeveloper partner for Elysian III Apartments — a 60-unit multi-family housing development in Spanish Town East, EBR. CAFA provides financing and development support.
• Volunteers of America (Housing Arm)keyStrategic or Co-development PartnerDeveloper partner for Motor City Apartments (110-unit new multi-family, Scenic Highway Midcity) and Valencia Park Apartments (122-unit, Veterans housing, Spanish Town East). CAFA provides financing for both projects.
• Vitus DevelopmentstandardStrategic or Co-development PartnerDeveloper partner for La Playa Apartments — total renovation of 140 housing units in a 50-year-old complex on Hanks Drive, EBR. CAFA provides financing and PILOT arrangement.
• Arts Council of Greater Baton RougekeyStrategic or Co-development PartnerCAFA providing financing for renovation of former District Attorney's office at 233 St. Ferdinand Street into the Cary Saurage Community Arts Center. Project includes black box theater, recording studio, art gallery, workspaces, and rooftop terrace. CAFA provides grants for community development aligned with its trust indenture.
• Renaissance Neighborhood Development CorporationkeyStrategic or Co-development PartnerDeveloper partner for Valencia Park Apartments — 122-unit quality housing for working people in Spanish Town East, targeted at Veterans. CAFA provides financing and development support.
• Louisiana Parish Governments (Cooperative Endeavor Agreements)keyChannel Partner/ Reseller/ DistributorCAFA has Cooperative Endeavor Agreements (CEAs) enabling program delivery in 30+ parishes beyond the core nine-parish region. Expanded footprint to 61 parishes for down payment assistance programs.

Scale indicators6 records

Recent moves6 records

Expansion highlights4 records

Direct peers

• CalHFA (California Housing Finance Agency): A large U.S. state housing finance agency offering tax-exempt bond-funded first mortgages, down payment assistance grants/loans, and multi-family financing. Directly comparable in product structure, statutory authority, and reliance on approved lender distribution to CAFA, though at substantially greater scale.
• Louisiana Housing Corporation: Louisiana's state-level housing finance agency, the most direct comparable to CAFA. Both operate within Louisiana, administer Mortgage Revenue Bond / MRB-funded first mortgage and DPA programs for LMI borrowers, and issue tax-exempt conduit bonds for affordable multi-family housing — competing for the same lender network and borrower pool.
• Pennsylvania Housing Finance Agency (PHFA): Pennsylvania's state HFA that issues tax-exempt mortgage revenue bonds to fund below-market first mortgages and DPA programs for first-time homebuyers, alongside multi-family financing. Comparable in product suite, statutory powers, and approved-lender distribution model.
• Texas Department of Housing and Community Affairs: Texas's state housing finance agency administering bond-funded homeownership and multifamily programs for LMI households. Closely parallels CAFA's MRB-based mortgage model, DPA grant products, and conduit bond issuance for affordable housing developments.
• Florida Housing Finance Corporation: Florida's state-level housing finance authority that funds first mortgages via bond issuance, administers statewide DPA programs, and finances multi-family affordable housing through tax-exempt bonds. Comparable to CAFA in business model and statutory powers, operating in a similarly disaster-prone state.
• Massachusetts Housing Partnership: A quasi-public Massachusetts housing finance entity offering below-market-rate mortgages, down payment assistance, and affordable rental financing. Operates with similar statutory powers and approved-lender distribution as CAFA, though at smaller scale.
• New York State Homes and Community Renewal: New York's state housing finance and development agency, providing low-interest first mortgages, DPA, and tax-exempt bond financing for affordable housing. Directly comparable in statutory structure and product breadth, with significantly greater scale and political complexity than CAFA.

Broad incumbents

• Freddie Mac: A federally-sponsored housing enterprise providing liquidity to the mortgage market and administering the HFA Advantage program — a direct partner with CAFA for its conventional loan product with 0% DPA enhancement. Comparable in borrower-support focus, but operating as a national secondary-market institution rather than a local HFA.
• Fannie Mae: A federally-sponsored housing enterprise that purchases conforming mortgages from lenders and supports the secondary market for affordable housing finance. While CAFA originates via approved lenders (some of whom ultimately sell loans to GSEs), Fannie Mae operates at far greater scale with overlapping borrower-support initiatives such as HomeReady.

Regional players

• Greater New Orleans Finance Authority: A Louisiana public trust finance authority operating in the greater New Orleans region with similar statutory powers to CAFA (tax-exempt bond issuance, PILOT arrangements for development). Direct peer in geographic scope and statutory powers, though serving a different regional market within the same state.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks7 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/thecafa

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Capital Area Finance Authority