$9 Million in Grants for Affordable Housing Awarded by Federal Home Loan Bank of San Francisco

Business Wire, Jan 22, 1996

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 22, 1996--Sixty-one housing programs have been awarded $9 million to help create over 2,300 new units of affordable housing in Arizona, California, and Nevada, the Federal Home Loan Bank of San Francisco announced today.

"The competition for funds in this round was intense, and all of the winning projects were outstanding," said Bank President Dean Schultz. "As funding for government programs becomes scarcer, the Bank's Affordable Housing Program becomes an even more critical component in creating housing that meets the needs of lower income families and those with special needs."

Over 75 percent of the projects will serve individuals and families that earn less than 50 percent of the median income for the area in which they live.

The following California communities will benefit from the grants announced today: Benecia, Brea, Buena Park, Castro Valley, Chula Vista, Davis, Dixon, East Palo Alto, Fullerton, Half Moon Bay, Hollywood, Huntington Beach, Linda, Los Angeles, Midway City, Modesto, Moreno Valley, Oakland, Palm Desert, Palo Alto, Sacramento, Salinas, San Diego, San Francisco, San Jose, San Pedro, Santa Cruz, Santa Monica, Santa Rosa, Sebastopol, Shasta County, Soledad, Soquel, Tiburon, Turlock, Watsonville, and West Sacramento. In Arizona, the following communities will benefit: Catalina, Mesa, Phoenix, and Tucson. In Nevada, two projects will create homeownership opportunities in Dayton and Las Vegas.

The 61 winning projects will leverage approximately $274 million in total development costs. Since the first round of the Bank's Affordable Housing Program in 1990, the Bank and its shareholders have committed $85 million to 410 housing programs, supporting the creation of over 21,000 units of affordable housing.

The Federal Home Loan Bank of San Francisco's Affordable Housing Program awards grants to projects that address community needs in creative ways and that make the most effective use of the money. The funds are derived from the Bank's net earnings, which would otherwise be paid as dividends to shareholders. In effect, Bank members forgo approximately 10 percent of their earnings on Bank stock to support these projects.

Each competing project must be sponsored by a financial institution that is a member of the Bank, usually in conjunction with a community-based affordable housing sponsor. "The Bank's mission is to help community-oriented lenders make housing more accessible and more affordable," said Schultz. "Our shareholders have made lending in low- and moderate-income neighborhoods a significant part of their everyday business, and they rely on us to provide them with low-cost funding when they need it. The Affordable Housing Program makes it possible for our shareholders to reach those with even greater need and fosters enduring relationships between lenders and community organizations, helping to revitalize neighborhoods and sustain healthy communities."

The Federal Home Loan Bank of San Francisco promotes housing and homeownership by expanding the supply and reducing the cost of mortgage credit. The Bank serves and is owned by commercial banks, credit unions, savings institutions, and thrift and loan associations headquartered in Arizona, California and Nevada. As of December 31, 1995, the Bank had 178 shareholders. With approximately $51 billion in assets, the Bank is the largest of the 12 banks in the Federal Home Loan Bank System.

A list of the projects that have been awarded subsidies in this round follows. Individual project descriptions, including contact names and phone numbers, are available upon request. -0-

AFFORDABLE HOUSING PROGRAM AWARD RECIPIENTS 1995 ROUND B

ARIZONA MARICOPA COUNTY

Project: HOMESTART LISC, Phoenix Member: State Savings Bank Sponsor: Local Initiatives Support Corporation Subsidy: $150,000 for 30 very low-income ownership units

Project: New Opportunities Program, Mesa Member: State Savings Bank, FSB Sponsor: Housing For Mesa, Inc. Subsidy: $40,000 for 8 ownership units, 3 very low-income

PIMA COUNTY

Project: Home, by Primavera Builders, Inc., Tucson Member: Arizona Bank Sponsor: Primavera Builders, Inc. Subsidy: $125,000 for 26 ownership units, 4 very low-income

Project: Tucson Affordable Sustainable Homeownership Program, Tucson Member: Arizona Bank Sponsor: City of Tucson, Community Services Department, Technical

Services Division Subsidy: $80,000 for 8 very low-income ownership units

Project: Twin Lakes Project, Catalina Member: Arizona Bank Sponsor: United Housing and Educational Development Corporation Subsidy: $110,000 for 22 ownership units, 12 very low-income

CALIFORNIA ALAMEDA COUNTY

Project: Drasnin Manor, Oakland Member: American Savings Bank Sponsor: Oakland Community Housing, Inc. Subsidy: $100,000 for 26 rental units, 15 very low-income

Project: MacArthur Park, Oakland Member: First Nationwide Bank Sponsor: Oakland Community Housing, Inc. Subsidy: $465,000 for 93 ownership units

Project: Strobridge Court Apartments, Castro Valley Member: SAMCO Sponsor: BRIDGE Housing Corporation Subsidy: $100,394 for 96 rental units, 53 very low-income