California's Affordable Housing Crisis Exacerbated by Highest Rental Rates in the Country
California Grants Part of a Total of $32.9M in Funding Awarded to 38 Vital Projects in Partnership with Member Financial Institutions in California, Arizona, and Nevada
SAN FRANCISCO, July 11, 2023 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) today announced it awarded over $26 million in Affordable Housing Program (AHP) grants to fund 30 projects that will create 2,420 units of affordable housing in California. FHLBank San Francisco is the largest privately-owned source of affordable housing funding within its region - comprising California, Arizona, and Nevada - and collectively with the other Federal Home Loan Banks, one of the largest privately-owned grantors in the country.
According to the National Low Income Housing Coalition, California is the most expensive state in the country for renters across all income levels. Additionally, there is a massive shortage of affordable rental homes available to extremely low-income households and it’s reported that California needs at least 2.5 million new housing units over the next eight years to support the growing population. 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.
“Lack of affordable housing is one of the most intractable problems our country faces today due to decades of systematic oppression that has created lasting inequality for millions of Americans,” said Teresa Bryce Bazemore, CEO and President of FHLBank San Francisco. “In California specifically, the housing crisis is exacerbated by dangerously high rents that increase annually and show no signs of reversing course. It's a crisis that can only be solved by consistent, dedicated, and equitable collaboration by a cadre of stakeholders, member institutions, and elected officials all working together to create lasting change. All of us at the Federal Home Loan Bank of San Francisco take great pride in contributing to the solution by awarding over $26 million in grants to fund affordable rental housing for California residents in need of a safe, stable place to call home.”
“Addressing the affordable housing and homelessness crises requires a multi-faceted approach and partners like FHLBank San Francisco are crucial in helping find solutions,” U.S. Senator Alex Padilla (D-CA) said. “This funding will help support projects across California to provide communities with the affordable housing and services they need. I’ll continue working with all our partners to ensure that every person has a right to the dignity and security of housing.”
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. In total for the 2023 program cycle, the Bank’s AHP awarded $32.9 million in funding for 38 affordable housing projects in California, Arizona, and Nevada.
Notable projects in California winning 2023 AHP General Fund grants include:
- $1 million awarded for the rehabilitation of The Woodlands in Woodland Hills, California, which will convert a 1974 hotel into 100 units of rent-free transitional housing for homeless households, in collaboration with member City National Bank and Hope of the Valley Rescue Mission.
- $1 million awarded for the new construction of Sango Court in Milpitas, California, to create 101 units of housing for low-income residents, with 51 units allocated for veterans and formerly unhoused individuals, in collaboration with member Century Housing Corporation and Resources for Community Development.
- $1 million awarded for the new construction of Ancora Place, a multi-family development in Oakland, California, designed to provide 77 permanently affordable rental housing units for large families and other extremely low-income residents, in collaboration with member Wells Fargo National Bank West and Satellite Affordable Housing Associates.
- $1 million awarded for the new construction of Cudahy Seniors, a mixed-use senior housing development in Cudahy, California, which will create 140 units of affordable housing for seniors in need of a safe and service-enriched environment to “age in place,” in collaboration with member Citizens Business Bank and National Community Renaissance of California.
AHP-funded projects represent a wide range of strategies and solutions, from historic preservation and adaptive reuse to new construction and rehabilitation. Where AHP projects are developed, local economies also get a boost, as these projects create jobs, increase construction and consumer spending, and generate new tax revenues. Learn more about the communities, families, and individuals that have benefited from access to AHP-funded housing on the Bank’s website. Since 1990, we have contributed over $1.14 billion in AHP General Fund and Nevada Targeted Fund grants to support 141,000 units of affordable housing.
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.
