San Francisco Federal Home Loan Bank
Improved conditions expand access to capital and liquidity for underserved communities
SAN FRANCISCO, Oct. 22, 2024 (Globe Newswire) — Federal Home Loan Bank of San Francisco (FHLBank San Francisco) is strengthening its credit and collateral risk policies to allow non-depository community development financial institutions to expand lending. (CDFIs) and state-chartered housing finance agencies (HFAs) have announced increased support for the low-income communities they serve. This enhancement is in line with the Bank’s mission to support affordable housing and economic development and is designed to increase liquidity to support local development in communities in need.
“We are committed to listening to our CDFI members, analyzing ways to expand our relationships with CDFIs and HFAs, and working together toward our shared mission of advancing economic opportunity and affordable housing. Our new underwriting enhancements are the first step toward increasing access and liquidity,” said Alana McCargo, President and CEO of FHLBank San Francisco. says Mr. “Funds that benefit the communities we collectively serve by improving terms and access to capital for non-deposit CDFI members and increasing lending availability for housing providers like HFA. In addition, there are many untapped expansion opportunities in this area, and we will continue to work with CDFI members and housing stakeholders to support their efforts. We will continue to innovate new programs.”
The main borrowing enhancements are as follows.
Extends credit terms for collateral from five years to up to 20 years for non-escrow CDFIs that can provide lifetime financing for large affordable housing projects, including Low Income Housing Tax Credit (LIHTC) properties
Increased borrowing availability through pledged collateral to support affordable housing and community development projects.
Housing program limit increases from $250 million to $500 million to continue supporting state housing finance agency programs
FHLBank San Francisco will discuss the impact of these enhancements with CDFIs this week at the annual Opportunity Finance Network Conference in Los Angeles, CDFI’s largest annual gathering. The Bank looks forward to engaging, collaborating, and celebrating the efforts of CDFIs and HFAs to expand economic opportunity in the communities they serve.
CDFIs and HFAs are at the forefront of providing funding to low-income communities. FHLBank San Francisco supports the mission of non-deposit CDFI members and housing stakeholders by providing access to low-cost capital and grants for affordable housing and economic development . Non-deposit CDFIs have traditionally had difficulty obtaining long-term, affordable financing, and FHLBank San Francisco is partnering with non-deposit CDFIs to enhance its ability to serve its customers and community. I have tried to do so. This important partnership will increase the supply of affordable housing and accelerate homeownership and economic development efforts in underserved communities.
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To further their unique community impact goals, CDFI members receive FHLBank San Francisco’s Community Enterprise Advance (ACE) and Community Investment Program (CIP) discounted credit products, Affordable Housing Program (AHP), and also benefit from access to housing and financial support. Development (AHEAD) A program that provides small grants for economic development.
For more than a decade, FHLBank San Francisco has partnered with non-deposit CDFIs to create positive community impact, including:
Since 2011, we have funded $686 million in competitively priced advances and an additional $36 million in discounted advances for community development.
Awarded $79.9 million in AHP grants to build or preserve 6,885 affordable housing units.
Awarded $1.6 million in AHEAD grants to non-depository CDFI members for 45 economic development and recovery efforts.
Support programs designed to support Latino entrepreneurs, provide critical housing and other services to Native American communities, promote career development for people of color, and improve underserved communities. Support other programs and projects that benefit underserved communities.
About the Federal Home Loan Bank of San Francisco
The Federal Home Loan Bank of San Francisco is a member-owned cooperative that helps local lenders in Arizona, California and Nevada build strong communities, create opportunities and change lives for the better. The tools and resources we provide to our member financial institutions (commercial banks, credit unions, industrial finance companies, savings institutions, insurance companies, and community development financial institutions) promote homeownership and provide quality, affordable housing. finance, promote economic vitality, and revitalize neighborhoods. We work with our members and other partners to make the communities we serve more vibrant, just, and resilient.
Contact: Contact Information: Tom Flannigan tom.flannigan@fhlbsf.com 415-616-2695
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