LOS ANGELES, CA – November 22, 2019 – In a presentation to attendees of the Los Angeles Business Council’s Annual Mayoral Housing, Transportation & Jobs Summit, Federal Home Loan Bank of San Francisco’s Chief Banking Officer Stephen Traynor highlighted the economic impact of the lending activity of FHLBank San Francisco’s members and how the FHLBank’s community grant and credit programs support affordable housing and economic development in one of the country’s largest and most diverse metropolitan regions.
"We thank the Federal Home Loan Bank of San Francisco for their leadership in supporting local communities with their grant, lending, affordable housing, and economic development programs. By investing in LA’s local, small, and diverse businesses, FHLBank San Francisco is helping drive job creation and small business development to create a more equitable and vibrant Los Angeles,” said Mary Leslie, President, LABC and LABC Institute. “We applaud the efforts of the Bank and all of the speakers at this year's Mayoral Housing, Transportation & Jobs Summit for their work securing resources for individuals and families at all income levels in high-cost Los Angeles."
“The Federal Home Loan Bank of San Francisco has 152 member financial institutions operating 386 branches throughout Los Angeles County,” said Mr. Traynor. “To support lending activity in their communities, these members have pledged more than $8 billion in collateral from Los Angeles County to borrow from the Bank.”
To illustrate how local Bank members serve their particular communities, Mr. Traynor presented a video featuring Broadway Federal Bank CEO Wayne Bradshaw. In the video, Doing Good by Doing Well in Los Angeles, Mr. Bradshaw tells a compelling story of how access to credit from FHLBank San Francisco enables Broadway Federal and other member financial institutions to finance housing for families at all income levels in high-cost Los Angeles.
The FHLBank San Francisco’s Affordable Housing Program (AHP), funded each year with 10% of net income, has awarded over $1.1 billion in grants for affordable housing since 1990. “Here in Los Angeles County, where the lack of affordable housing is at crisis level,” Mr. Traynor said, “our local members have delivered over $211 million in grants to affordable housing developers. Those funds have helped create more than 140,000 units of quality affordable housing that 300,000 low-income Angelinos call home.”
Member financial institutions in Los Angeles and throughout the Bank’s 3-state district (Arizona, California, and Nevada) also have access to programs that fund matching grants of up to $22,000 to help first-time homebuyers cover downpayment and closing costs, Mr. Traynor explained. This year, the Bank made $9.3 million available to members so that they can deliver these matching grants to lower-income customers.
Turning the focus to jobs, Mr. Traynor noted that in addition to its affordable housing-focused grant programs, the Bank also supports members partnering with nonprofits to advance economic development initiatives – especially jobs-related programs targeted to underserved populations – by providing grants through its AHEAD grant program.
Mr. Traynor concluded his presentation with a discussion of a groundbreaking investment the Bank and its members have made. The Quality Jobs Fund was seeded with a $100 million donation from FHLBank San Francisco and is managed as a Donor Advised Fund by New World Foundation. The fund invests in small, innovative businesses with a track-record of consistent growth and job creation and in training organizations for which there is a quality job waiting upon completion of training. The initiative is intended to advance the field of knowledge about what it takes to create a quality job, so efforts can be replicated.
The link between quality jobs and the Bank’s core mission of expanding homeownership by providing liquidity to local lenders for housing finance is obvious. “If people don’t make enough money,” Mr. Traynor said, “they can’t afford to buy a home.”
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 resources and tools we provide to our member financial institutions–commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions–foster homeownership, expand access to quality housing, seed or sustain small businesses, and revitalize whole neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant and resilient.
Kevin Blackburn, 510-377-8999