$9.8 Million in Affordable Housing Grants Awarded by Federal Home Loan Bank of San Francisco

Business Wire, July 1, 1996

SAN FRANCISCO--(BUSINESS WIRE)--July 1, 1996--The Federal Home Loan Bank of San Francisco has awarded $9.8 million to 61 housing programs to help create over 2,600 new units of affordable housing in Arizona, California, Florida, Nevada, and New Jersey.

"The outstanding projects submitted in this round of the Affordable Housing Program address one of the thorniest issues in housing: creating homeownership opportunities for people who have typically not had those opportunities, including low-income households, Native Americans, people with developmental disabilities, and single-parent families," said Dean Schultz, president and chief executive officer of the Federal Home Loan Bank of San Francisco. "These award-winning initiatives also address the growing demand for decent, affordable rental housing designed to meet the needs of at-risk populations, such as homeless people, seniors, and mentally or physically disabled individuals. These projects not only provide housing, but bring new hope to residents and homebuyers and build sustainable communities in the process."

Over 83% percent of the units will be reserved for individuals and families that earn less than 50 percent of the median income for the area in which they live, while the remaining units will serve households earning up to 80 percent of area median income.

The following California communities will benefit from the grants announced today: Alameda County, Berkeley, Castro Valley, Chico, Chula Vista, Concord, Daly City, Davis, Fremont, Fresno, Half Moon Bay, Indio, Los Angeles, Marin County, Marysville, Mountain View, Napa, Oakland, Orland, Panorama City, Pasadena, Petaluma, Pittsburg, Pleasant Hill, Sacramento, Salinas, San Diego, San Francisco, San Jose, Santa Monica, Santa Rosa, Scotts Valley, Soledad, Trinity County, Watsonville, and Yuba City. In Arizona, five projects will benefit communities in Phoenix, Tucson, and the Arizona portion of the Navajo Nation. Winning projects are also located in Sparks, Nevada; Miami, Florida, and in several towns in New Jersey.

The 61 winning projects will leverage approximately $263 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 $94 million to 515 housing programs, supporting the creation of over 23,000 units of affordable housing.

The Federal Home Loan Bank of San Francisco's Affordable Housing Program provides 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 10 percent or more 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 Mr. 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 $50 billion in assets, the Bank is the largest of the 12 banks in the Federal Home Loan Bank System.

Individual project descriptions, including contact names and phone numbers, are available upon request. -0-

AFFORDABLE HOUSING PROGRAM AWARD RECIPIENTS 1996 ROUND A

ARIZONA COCONINO COUNTY

Project: Navajo Partnership for Housing, Navajo Nation Member: Norwest Bank Nevada Sponsor: Navajo Partnership for Housing Subsidy: $150,000 for 30 ownership units

MARICOPA COUNTY

Project: Arizona Home of Your Own, Phoenix Member: Norwest Bank Nevada Sponsor: Governor's Council on Developmental Disabilities Subsidy: $90,000 for 18 very low-income ownership units

Project: Highway House, Phoenix Member: National Bank of Arizona Sponsor: Central Arizona Shelter Services Subsidy: $250,000 for 60 very low-income rental units

PIMA COUNTY

Project: Primavera Transitional Housing, Tucson Member: Arizona Bank Sponsor: Primavera Foundation, Inc. Subsidy: $100,000 for 25 very low-income rental units

Project: Project Rico, Tucson Member: Arizona Bank Sponsor: Project PPEP, Inc./PPEP Microbusiness and Housing Development Corporation Subsidy: $70,000 for 10 ownership units, 4 very low-income