A Catalyst for Economic Development
The Louisiana Public Facilities Authority (LPFA) is a financing authority created in 1974 as a public trust and public corporation by the Public Facilities Corporation, a Louisiana corporation, pursuant to an indenture of trust. The State of Louisiana is the beneficiary of that trust. The LPFA has the ability to issue both taxable and tax-exempt bonds to finance everything from educational facilities to hospitals, student loans, industrial and economic development projects and essential programs for state and local governmental units. The LPFA is a self-supporting authority that operates solely on self-generated revenues. The LPFA has never received any tax or other appropriation from the State of Louisiana for its operations and has never requested such funds. LPFA's operating expenses are covered through revenues generated by fees on bonds issued through the LPFA.
Purpose of the LPFA
The purpose of the LPFA is to promote, encourage and further the accomplishment of all activities which are or may become beneficial to the State of Louisiana and which have a public purpose, including - but not limited to - financing the following:
How the LPFA Works
The LPFA acts as a "conduit" issuer of bonds on behalf of a borrowing entity. This means that the LPFA issues bonds on behalf of other entities in order for those entities to be able to finance their projects on a tax-exempt basis. Under the Internal Revenue Code, certain "for profit" entities and Section 501(c)(3) organizations can finance their projects with tax-exempt bonds, but these entities cannot do so directly. They must borrow through a "conduit" issuer of bonds in order to receive the tax-exempt financing. Therefore, entities do not borrow from the LPFA, but through the LPFA, using the LPFA to access the capital markets at tax-exempt rates.
Unique LPFA Assistance
The LPFA has used its assets to help Louisiana and its people. What other public trust or financing agency has returned $23 million to help Louisiana? By inducing this money into Program loans and borrowings, the LPFA has facilitated lower interest rates, thereby providing tremendous direct savings to the State and to local entities.
Our primary mission is to further education, healthcare, economic development, and job creation in Louisiana in order to make Louisiana a better place to work, live, and raise our families. We fulfill this mission by helping to finance economic development projects that bring jobs to Louisiana, by offering discounted student loans to help our citizens obtain a college education, by financing healthcare facilities and activities in order to improve the quality of and access to healthcare in Louisiana, by financing schools and colleges to help provide access to and promote learning throughout Louisiana, by helping low and moderate income individuals and families achieve the dream of home ownership, and by helping Louisiana and its citizens with their financing needs. Please review our web site and our publications to obtain more specific information on how we help make Louisiana a better place to work and live.
Helping the People of Louisiana
Every project and program of the LPFA is done with one thing in mind: helping the people of Louisiana. This graph represents a historical summary of our Program financings and Private Activity Bond Projects.
About the Laws We Comply With
The LPFA complies with state laws regarding public records, public contracts, open meetings, public bids, the Bond Validation Procedures Law and the state Code of Ethics. Annual independent financial audits of the LPFA are performed by an independent accounting firm selected by the State Legislative Auditor. All LPFA bond issues must undergo review and approval by the State Bond Commission. All bond-issuance fees paid in connection with LPFA bond issues are subject to the review of the State Bond Commission or the Louisiana Attorney General. The annual operating budget of the LPFA must be approved by the Joint Legislative Committee on the Budget.