Federal Home Loan Bank of San Francisco Awards $6.6 Million for Low-Income, First-Time Homebuyers

Business Wire, April 4, 2001

Business/Real Estate Editors

SAN FRANCISCO--(BUSINESS WIRE)--April 4, 2001

The Federal Home Loan Bank of San Francisco today announced $6.6 million in matching grants for low-income households saving to buy their first home. Under the Bank's Individual Development and Empowerment Account (IDEA) Program, the Bank will make available up to $10,000 each to first-time homebuyers in Arizona, California, Colorado, Florida, Maryland, New Jersey, and Nevada.

"By matching a family's savings, IDEA provides a financial incentive to help lower-income households plan for and achieve what might otherwise seem an impossible dream--owning a home of their own," said Jim Yacenda, Vice President and Community Investment Officer at the Federal Home Loan Bank of San Francisco.

Through the Bank's member financial institutions, the IDEA Program provides up to $10,000 for downpayment or closing costs for each participating family, matching up to $3 for every dollar saved by the homebuyer. Participating households may earn up to 80% of median income for the area in which they live and must be enrolled in a Family Self-Sufficiency (FSS) program through a local public housing authority or be enrolled in an Individual Development Account (IDA) program through a nonprofit organization or through a Bank member. To qualify for the matching subsidy, homebuyers must complete a homeownership counseling program, save money toward the purchase of their home for at least 10 months, and then qualify for a mortgage on a home they are able to purchase.

"The Federal Home Loan Bank of San Francisco has been a driving force for affordable housing in California and other states," U.S. Senator Dianne Feinstein (D-CA) said. "Programs like IDEA help local organizations, businesses, and community members work together toward the goals of affordable housing and expanded homeownership opportunities for everyone."

Of the $6.6 million allocated for 2001, the Bank awarded $2.2 million to 20 FSS programs and $4.4 million to 32 IDA programs through 15 member financial institutions. In California, the programs will benefit homebuyers in the cities of Benicia, Dublin, Inglewood, Lompoc, Los Angeles, Napa, Oakland, San Diego, San Francisco, San Ysidro, Santa Ana, Santa Barbara, and Vista, and in the counties of Contra Costa, Fresno, Los Angeles, Marin, Mendocino, Orange, Riverside, Sacramento, San Bernardino, Santa Barbara, Sonoma, and Ventura. The programs will also benefit homebuyers in Mesa, Phoenix, Pima County, Scottsdale, Tempe, and Tucson, Arizona, and in Southern Arizona; in Clark County, Las Vegas, and Reno, Nevada, and in Northern Nevada; in Denver, Colorado; in Dade County, Florida; in Prince George's County, Maryland; and in Northwestern New Jersey.

In 2000, the first year of the IDEA Program, the Bank awarded $2.4 million in grants to 24 programs. The IDEA Program is part of the Federal Home Loan Bank of San Francisco's Affordable Housing Program (AHP), which provides grants and loan subsidies to create affordable rental and homeownership opportunities in the communities served by the Bank's members. Each year, the Bank sets aside 10% of its net earnings to fund the AHP. Since the first AHP subsidies were awarded in 1990, the Bank has committed nearly $200 million to 940 affordable housing initiatives (not including the $9.0 million in IDEA grants awarded in 2000 and 2001).

The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgages to people of all income levels and provide credit that builds neighborhoods and communities. As of December 31, 2000, the Bank's outstanding loans to its members exceeded $110 billion. The Bank also funds community investment programs that help members create affordable housing, promote community economic development, and foster partnerships among lenders, housing developers, community organizations, and government agencies. The largest of the 12 banks in the Federal Home Loan Bank System, the Federal Home Loan Bank of San Francisco serves and is owned by 297 commercial banks, savings institutions, credit unions, and thrift & loan companies headquartered in Arizona, California, and Nevada. For more information about the Bank and its programs, visit www.fhlbsf.com.

Editor's Note: A list of the winning programs sorted by state and city/county is available upon request.