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SAN FRANCISCO – Dec. 12, 2022 – While the entire country is experiencing a housing shortage, California continues to be at the center of the crisis. To address this, public officials, housing experts, and financial institutions gathered at the Federal Home Loan Bank of San Francisco’s Homeownership Solutions Summit in Sacramento. Stakeholders from across the housing industry and mortgage finance industry joined community and political leaders to share ideas, explore best practices, and coordinate public and private collaboration to better address the urgent demand for affordable housing. 

“Tackling California’s housing challenges will require multiple solutions and broad collaboration between public and private sector institutions,” said Teresa Bryce Bazemore, president and CEO of FHLBank San Francisco. “Everyone in attendance, from policymakers to housing developers, demonstrated how committed they are to meeting the demand for housing across our communities. Our team at FHLBank San Francisco is proud to provide a forum for bringing these key stakeholders closer together to address this critical need.”

According to data from Up for Growth, the national housing shortage reached 3.8 million homes in 2019, which is over double the number for 2012. Of the states, California had the nation’s biggest shortfall. The main impacts affecting these numbers come from the rising cost and limited availability of labor, materials, and land along with the challenges presented by density restrictions and permitting.

West Sacramento Mayor Martha Guerrero, Stockton Mayor Kevin Lincoln, and deputy chief of staff to Gov. Newsom Jason Elliott joined banking executives, housing developers, and community leaders to discuss persistent challenges and potential solutions for increasing housing production. 

“The cost of homeownership and the cost of rent are a direct result of a lack of supply. Increasing availability of affordable housing is a priority initiative for Governor Newsom,” said Elliott. “Today’s housing crisis has been decades in the making and will require unprecedented solutions to solve. We need builders to build, lenders to lend, and communities to say yes.”

The cost of construction materials and labor grew 57% from 2000 to 2016 and continues to climb. Early in the pandemic, lumber prices skyrocketed, more than doubling between 2020 and 2021. Land costs, meanwhile, almost doubled between 2000 and 2019. While there is no single solution to these challenges, the summit brought together key stakeholders to facilitate discussions that lead to action.  

“Since 2008, the housing crisis has become one of the most pressing issues for local city leaders. And addressing housing affordability is not only an economic imperative, but also a social justice and climate action imperative.” said Mayor Guerrero. “I applaud FHLBank San Francisco for initiating this dialogue and for bringing together leading practitioners in housing to share what’s working, challenge what’s not, and move us closer to sustainable solutions.” 

Key themes from the summit presentations and discussions included:

• Programs at the state and local level that are effectively addressing the housing shortage 
• Innovative solutions offered by developers
• Calls for expansion of the Low-Income Housing Tax Credit program
• More effective underwriting for financing manufactured or modular homes

Building on the momentum of this event, FHLBank San Francisco will host two additional Homeownership Solutions Summits, one in Reno, Nev., and another in Phoenix in 2023. 

For additional information on FHLBank San Francisco’s ongoing investment in affordable housing development, downpayment assistance for first-time homebuyers, economic development for underserved communities, and efforts to advance racial equity in homeownership, please visit the Community Programs section of the Bank's website. 

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—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, equitable, and resilient.
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