To: All Members and Interested Community Groups:
The Bank offers a number of valuable community programs and resources to help build strong and vibrant communities. The following targeted grants and credit products, made available through our member financial institutions, are used to support affordable housing and economic development in Arizona, California, Nevada, and other regions served by our members.
Each year, we contribute 10% of our net income for the preceding year to the AHP for projects and programs that create affordable housing opportunities for families and individuals earning up to 80% of the area median income. The majority of the funds are awarded through a competitive application process and used by members to help finance the development, acquisition, or rehabilitation of rental and owner-occupied multifamily and single-family housing. A portion of the funds is set aside for our first-time homebuyer programs, IDEA and WISH.
AHP grants are awarded through a competitive application process and support a wide range of projects, from historic preservation and adaptive reuse to new construction and rehabilitation and sale of foreclosed homes. Bank members submit applications for these grants in partnership with community-based affordable housing project sponsors. The next application cycle will begin in the first quarter of 2015.
Individual Development and Empowerment Account (IDEA) Program
The IDEA Program provides matching grants through Bank members to first-time homebuyers saving to buy a home through an Individual Development Account or by participating in a Family Self-Sufficiency or lease-to-own program. Eligible low- and moderate-income households can receive 3-to-1 matching grants of up to $15,000 for the purchase of a home, which can be applied to the downpayment or closing costs. The Bank allocates IDEA funds once a year to members based on program eligibility. The next application cycle will take place during the first quarter of 2015.
Workforce Initiative Subsidy for Homeownership (WISH) Program
The WISH Program provides matching grants through Bank members to working families and individuals who are ready to make the transition from renting to owning. Eligible low- and moderate-income households can receive 3-to-1 matching grants of up to $15,000 for the purchase of a home, which can be applied to the downpayment or closing costs. The Bank allocates WISH funds once a year to members based on program eligibility. The next application cycle will take place during the first quarter of 2015.
Access to Housing and Economic Assistance for Development (AHEAD) Program
AHEAD grants support the efforts of members, working with local community organizations, to give a critical, early-stage boost to targeted economic development projects that create or preserve jobs, facilitate improvements to public or private infrastructure, or deliver social services, training and education programs, and other services and programs that benefit lower-income neighborhoods. The Bank allocates AHEAD funds annually, and individual grants are awarded to members based on project eligibility and evaluation of the application. The next application cycle will take place during the second quarter of 2015.
Advances for Community Enterprise (ACE)
Members may use ACE credit to provide funds for projects and activities that result in the creation or retention of jobs or provide services or other benefits for low- and moderate-income people and communities. Funds may be used to support community lending and economic development, including small business, commercial and industrial activities, community facilities, and public works. ACE advances are priced lower than regular Bank advances and are available for a variety of credit products in a wide range of maturities.
Community Investment Program (CIP)
Members may use CIP credit for a variety of targeted financing activities, such as funding mortgages, financing first-time homebuyer programs, and creating and maintaining affordable housing for households with incomes at or below 115% of the area median income. CIP advances are priced lower than regular Bank advances and are available for a variety of credit products in a wide range of maturities.
Homeownership Preservation Advance (HPA)
Members may use HPA credit to provide funds to modify or refinance mortgage loans for low- and moderate-income homeowners who may be at risk of losing their primary residence because of delinquency or default on a mortgage loan.
Community Investment Letters of Credit
The Bank's standby letters of credit are available to members at favorable rates to provide credit enhancement and support to the financing of housing and economic development projects that otherwise meet ACE and CIP eligibility requirements. Because the Bank is rated Aaa by Moody's and AA+ by Standard & Poor's, Bank letters of credit may enable members to obtain a Aaa or AA+ rating on tax-exempt bond and note transactions that their institutions support.
To promote economic development lending by our CFI members, the Bank provides borrowing capacity to CFI members on small business, small agribusiness, and small farm loans when they are pledged under blanket lien. A CFI is an FDIC-insured depository with average total assets of less than $1,108 million (to be adjusted each year by the annual percentage increase in the Consumer Price Index).
As part of the Bank’s annual Community Lending Plan, we:
We encourage you to visit fhlbsf.com for more information on the community programs described in this bulletin. Program application information, news about training and webinars, stories of how members have successfully used our programs, and links to other community reinvestment and lending websites of interest are also available online.
Please call the Community Investment Department at (415) 616-2754 or contact your Relationship Manager to discuss how to take advantage of these valuable resources.
President and Chief Executive Officer