First of Its Kind State Targeted Fund Reinforces Commitment to Addressing Housing Crisis in Nevada
Leadership of Senator Catherine Cortez Masto Accelerates Solutions to Critical Shortage of Affordable Housing
SAN FRANCISCO, July 10, 2023 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) today announced $4.8 million in affordable housing grants to Nevada-based groups through its newly established Affordable Housing Program (AHP) Nevada Targeted Fund. This Targeted Fund – a first of its kind in the country – is an important component of the Bank’s AHP and represents a significant commitment to addressing the critical shortage of affordable housing in the state. The grants will be distributed to six qualified projects to create or revitalize over 260 units of affordable housing throughout Nevada.
This year marks the inaugural year for the Nevada Targeted Fund, which was created through collaboration with Nevada Senator Catherine Cortez Masto to combat the critical affordable housing crisis throughout the state. According to the National Low Income Housing Coalition, Nevada tops the national list as the state with the highest percentage (21%) of extremely low-income households earning 0% to 30% of Area Median Income who are severely cost burdened, meaning the household spends more than 50% of its income on housing costs, including utilities.
To tackle this persistent issue, FHLBank San Francisco engaged in constructive dialogue with Senator Cortez Masto and other state leaders to launch the Nevada Targeted Fund. To ensure that there would be a wider pool of applicants submitting competitive applications, FHLBank San Francisco granted $500,000 to the Nevada Housing Coalition (NHC) to build the coalition’s capacity, expand affordable housing development capabilities, and better position developers throughout the state to secure and deploy affordable housing dollars. The Bank’s board of directors recently approved an additional $350,000 grant for NHC to continue their capacity building and educational efforts this year and in 2024.
“Lack of affordable housing is one of the most intractable problems our country faces today and nowhere is this more evident than in Nevada,” said Teresa Bryce Bazemore, CEO and President of FHLBank San Francisco. “Nevada is sparsely populated with a wide array of diverse communities, many in dire need of housing. We are proud to collaborate with Senator Catherine Cortez Masto and recognize her leadership in the development of our Nevada Targeted Fund, which awarded $4.8 million to help address the affordable housing crisis throughout the state. Thanks to the commitment and constructive efforts of all involved, we’re encouraged that these resources will have a lasting impact on the residents of Nevada.”
“With housing prices and rents continuing to rise, we need to be building more affordable housing and making sure every Nevadan can access a safe place to live,” said Senator Cortez Masto. “I fought to make sure we got our fair share of support, and I will continue to make sure our state has the support we need to help more Nevada families buy homes and expand Nevada’s supply of affordable housing.”
Providing resources for affordable housing is a core element of FHLBank San Francisco’s mission, with a firm commitment to deploy at least 10% – and up to 15% – of its net profits from the prior year to fund affordable housing and related community investment programs. Grants are awarded in partnership with the Bank’s member financial institutions. In addition to the Nevada Targeted Fund awards, FHLBank San Francisco awarded over $28 million in grants in the 2023 AHP General Fund competition for projects throughout California and Arizona.
The 2023 AHP Nevada Targeted Fund grants will fund:
- New construction of lease-to-own homes on Washoe Tribal Trust Land near Carson City, Nevada, in collaboration with member Clearinghouse CDFI and Washoe Housing Authority.
- New construction of Orovada Street Senior Apartments in Reno, Nevada, in collaboration with member Wells Fargo National Bank West and Silver Sage Manor, Inc.
- New Construction of The Golden Rule Senior Apartments Phase 1 in Las Vegas, Nevada, in collaboration with member Toyota Financial Savings Bank, participating in the AHP for the first time, and Neighborhood Housing Services of Southern Nevada.
- New Construction of Pioche Apartments in Pioche, Nevada, in collaboration with member Wells Fargo National Bank West and Nevada Rural Housing Authority.
- New Construction of Rome South 2 Senior Apartments in North Las Vegas, Nevada, in collaboration with member Bank of America California, NA, and Nevada H.A.N.D., Inc.
- Rehabilitation of Hullum Homes, a public housing development in Las Vegas, Nevada, in collaboration with member Wells Fargo National Bank West and the Southern Nevada Regional Housing Authority.
AHP grants contribute to the development, preservation, and rehabilitation of single-family and multifamily housing that serves people in need, including the chronically unhoused, families, seniors, veterans, at-risk youth, people living with disabilities and mental health challenges or overcoming substance abuse. Grants are delivered through FHLBank San Francisco member institutions partnering with nonprofits and affordable housing developers to submit applications for grants for specific projects in an annual funding competition.
Since 1990, FHLBank San Francisco has contributed over $1.14 billion in AHP General Fund and Nevada Targeted Fund grants, making them the largest privately-owned source of affordable housing funding in their three-state region.
About the Federal Home Loan Bank of San Francisco
The Federal Home Loan Bank of San Francisco is a member-driven cooperative helping local lenders in Arizona, California, and Nevada build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions —propel homeownership, finance quality affordable housing, drive economic vitality, and revitalize whole neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant, equitable, and resilient.
