Underserved Communities in Sacramento Participate in FHLBank San Francisco's $40 Million Initiative to Address the Wealth Gap and Create New Wealth Opportunities
Matthew Dababneh (CA-45) Addresses Seminar on Wealth-Building in Underserved Communities
SAN FRANCISCO – May 10, 2016 – The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) today held a seminar in Sacramento to explore best practices for creating quality jobs and small business expansion in underserved West Coast communities. The session was an integral part of the Bank's Quality Job Growth and Business Expansion Financing initiative that will direct $40 million to support programs that use innovative strategies to enhance the income- and wealth-building potential of working families.
FHLBank San Francisco hopes the initiative will ultimately increase the pool of future homebuyers in the Bank's three-state district of Arizona, California, and Nevada.
“One of the biggest challenges for our nation is creating jobs that offer wages high enough to allow working families to raise their children and purchase homes in safe, nurturing communities,” said D. Tad Lowrey, chairman of FHLBank San Francisco’s board of directors. “We are exploring best practices for programs and initiatives that train local residents for good jobs or support their efforts to expand small businesses. These are the kinds of programs that the Bank wants to foster with this initiative.”
To help structure the initiative, FHLBank San Francisco is holding a series of seminars with local, regional, and national leaders in job creation and small business financing to discuss best practices for growing quality jobs in the region. Today’s session at The Citizen Hotel follows similar roundtable discussions in Los Angeles and Las Vegas. The remaining two will be held in Phoenix and the San Francisco Bay Area. The Aspen Institute, a partner in this effort, will assist in developing a white paper on the discussions, which will help shape the next phase of the initiative.
Today’s session included two panel discussions, one on Quality Job Growth and the second on Business Expansion Financing.
Panelists included Robbie Hunter, president, State Building and Construction Trades Council of California; Yvonne R. Walker, president of SEIU Local 1000 and vice president on SEIU International’s Executive Board; Van Ton-Quinlivan, vice chancellor, workforce and economic development, California Community Colleges; Anette Smith-Dohring, workforce development manager, Sutter Health; James Beckwith, president and chief executive officer, Five Star Bank; Bill Mueller, chief executive officer, Valley Vision; Cathy Rodriguez, chief executive officer, Sacramento Hispanic Chamber; Randall Winston, executive director, California Strategic Growth Council; and Tom Kandris, chief executive officer, Package One. Gregory L. Moore, former editor of The Denver Post, served as moderator of the discussions.
Lawrence H. Parks, senior vice president, legislative and external affairs, for FHLBank San Francisco, said, “It is critically important to identify what is working in communities because there is so much that is not working. The Bank saw an opportunity to start a dialogue and support innovations that can help move lower-income families up the economic ladder and reduce income inequality in our region.”
Parks said that by helping to create better job opportunities in targeted areas, the initiative can also support families and individuals aspiring to purchase homes in the future.
“I think the nation has, at least temporarily, lost sight of the many benefits of homeownership, especially for families whose current income can’t support purchasing a home; if a family’s income increases, homeownership is more likely,” Parks said, noting studies showing that homeownership is a factor in higher test scores for students, improved physical and psychological health outcomes, and a greater attachment to neighbors and neighborhoods.
Dean Schultz, president and chief executive officer of FHLBank San Francisco, said that the Bank determined that one of the best ways to enable more families to afford to buy a home is to create more stable, middle-class jobs.
“We are pleased to be committing a substantial amount of funding to such a worthwhile cause, one that is good for our country," Schultz said. "FHLBank San Francisco is demonstrating that individual organizations, institutions, and corporations can help make a difference in communities that are often forgotten by policymakers in both the public and private sectors. We hope that will change.”
Federal Home Loan Bank of San Francisco
The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgages to people of all income levels and provide credit that supports neighborhoods and communities. FHLBank San Francisco also funds community programs that help members create affordable housing and promote community economic development. FHLBank San Francisco members are headquartered in Arizona, California, and Nevada and include commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions.
Kevin Blackburn (510) 377-8999