2019 Affordable Housing Advisory Council Annual Report

Report From The Chair

As we go to press with this 2019 Affordable Housing Advisory Council Annual Report, it is April 29, 2020. The entire country is in the grip of an utterly unprecedented public health emergency: the ongoing global COVID-19 pandemic. Those of us in the business of serving the underserved and the most vulnerable people in our communities must now steel ourselves to peer around the corner of the immediate crisis, and anticipate what comes next. 

We know it will be harsh: this pandemic is already being compared to the Great Depression, with the burden falling most heavily on those who already struggle to get through the month, and keep a roof over their heads, on the wages of our largely service-based economy. The media is rightly lauding the essential frontline workers of our society, especially the healthcare professionals. But until the present crisis, the vital work of janitors and trash collectors, grocery shelf stockers and back-of-the-house restaurant workers, farm workers and meat packers, bus drivers and train operators, child minders and housekeepers, the gig workers, and so very many unseen others has seldom, if ever, been in the spotlight as it is now.

Restaurants and hair salons are closed. Many grocery store shelves are sometimes bare, with certain staples hard to find at any price. Food banks are overrun, with lines of cars backed up for miles, full of people who never expected they would need to queue for the most basic of necessities – bread and milk, canned soup, fresh meat and produce on a good day. Meanwhile, crops meant for schools and restaurants have been ploughed over in the field for lack of distribution plans. Supply chains are disrupted and many of the volunteers who normally keep charitable enterprises humming are sheltering in place instead of manning the distribution and service centers. 

If the financial devastation of the pandemic takes root in a nation already beset by income inequality, and transfers more wealth upward, the ground lost by lower-income people will be extremely hard to make up. Housing insecurity can only be exacerbated by this pandemic. And while low- to moderate-income wage earners may get some measure of relief for their financial losses, the situation of those who have no income to speak of are now made exponentially more precarious – and dangerous. A crowded homeless shelter or a derelict SRO hotel can provide no protection at all against an invisible, highly contagious virus. Unhoused people, many with underlying medical conditions, remain on the street, doing their best to practice social distancing in makeshift tents on otherwise empty streets, as better-off people are sheltering in more comfortable spaces. 

A force of nature, combined with a weak governmental response, has changed most major aspects of how we conduct our daily lives. The staying power of some of these changes is unknowable. But we know that the work that we do together, day in, day out, year after year, is going to be more essential than at any other time in recent memory. 

We will be challenged to find new ways to solve old problems, to mitigate the devastating social and economic consequences of the pandemic for the same people we work together to serve in the best of times: lower-income families and individuals struggling to find a safe and stable place to call home, a shelter for the night, or the means to buy a home of their own, along with people, populations, and whole communities that lack equitable economic opportunity. 

RELIEF, RECOVERY, AND RESILIENCE

A little over a year ago, in March 2019, disaster recovery and resilience was on the agenda of the Joint Meeting of FHLBank San Francisco’s Board of Directors and Affordable Housing Advisory Council. Following a presentation by Margaret Van Vliet from the Sonoma County Community Development Commission, Directors and Advisory Council members formed roundtables where discussion focused on either housing or economic development issues related to disaster recovery. The overarching theme of these discussions was how disasters exacerbate existing problems, specifically:

  • After the initial impact of losing housing and/or small businesses to a disaster, there is a second wave of crisis encompassing unwelcome rent increases, home price increases, evictions, decreased labor participation, and mass population exodus.
  • Displacement of individuals/families/small business is more acute after a disaster.
  • Construction costs increase with contractor and subcontractor labor shortages.
  • Insurance proceeds for rebuilding are inadequate to the task.
  • Historical systems of land use, financing, entitling, and constructing homes standing in the way of rebuilding at the pace required.
  • Scarce resources are also needed for repair and replacement of infrastructure.
  • Low-income residents are often the most affected, exacerbating economic and racial disparities.

The information and insights shared at the Joint Meeting will be helpful as we move forward to meet the wholly unexpected challenges of the pandemic and its economic fallout.  

The Federal Home Loan Bank of San Francisco’s Affordable Housing Program (AHP) and other community and economic development tools and resources are designed to help mitigate unequal economic opportunity and a relentless shortage of affordable housing in Arizona, California, Nevada, and other states where the Bank’s member financial institutions do business. The Bank’s Affordable Housing Advisory Council (Advisory Council) is pleased to present this annual report, which describes how the Bank’s Community Programs and related activities contributed to expanding access to affordable housing and economic opportunities in 2019.

2019 AHP: Targeted Solutions and New Approaches

FHLBank San Francisco awarded $51.2 million in AHP grants to 60 projects that will construct or rehabilitate 5,134 units of housing affordable for lower-income families and individuals in six states – Arizona, California, Maryland, Michigan, Nevada, and Texas. Twenty-one FHLBank San Francisco member financial institutions, working in partnership with community-based housing developers, submitted successful applications in the 2019 competition, with grants ranging from $96,000 to $1.5 million. 

This funding will help provide targeted housing solutions for low-income seniors, people who’ve experienced homelessness, veterans and their families, at-risk youth, autistic adults, and individuals with other special needs, including addiction, developmental disabilities, mental illness, or long-term chronic illnesses.

The 60 AHP grant winners in 2019 included four members that had not previously been awarded AHP grants. 

2019 Competitive Affordable Housing Program Results

  2019 2019 2019  
(Dollars in millions, except subsidy per unit) Rental Ownership Total 1990-2019
Applications Received        
Number of Applications 172 8 180 6,375
Subsidy Requested $143.9 $2.2 $146.1 $2,920.4
Approved Applications        
Number of Applications 59 1 60 2,398
Subsidy Awarded $51.0 $0.1 $65.9 $1,040.8
Number of Units 5,126 8 5,134 134,613
Effectiveness        
Average Subsidy per Unit
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FHLBank San Francisco awarded $51.2 million in AHP grants to 60 projects that will construct or rehabilitate 5,134 units of housing affordable for lower-income families and individuals in six states – Arizona, California, Maryland, Michigan, Nevada, and Texas. Twenty-one FHLBank San Francisco member financial institutions, working in partnership with community-based housing developers, submitted successful applications in the 2019 competition, with grants ranging from $96,000 to $1.5 million. 

This funding will help provide targeted housing solutions for low-income seniors, people who’ve experienced homelessness, veterans and their families, at-risk youth, autistic adults, and individuals with other special needs, including addiction, developmental disabilities, mental illness, or long-term chronic illnesses.

The 60 AHP grant winners in 2019 included four members that had not previously been awarded AHP grants. 

2019 Competitive Affordable Housing Program Results

  2019 2019 2019  
(Dollars in millions, except subsidy per unit) Rental Ownership Total 1990-2019
Applications Received        
Number of Applications 172 8 180 6,375
Subsidy Requested $143.9 $2.2 $146.1 $2,920.4
Approved Applications        
Number of Applications 59 1 60 2,398
Subsidy Awarded $51.0 $0.1 $65.9 $1,040.8
Number of Units 5,126 8 5,134 134,613
Effectiveness        
Average Subsidy per Unit $9,957 $18,000 $9,969 $7,732

These results reflect adjustments, cancellations, and modifications to projects as of December 31, 2019.

The high cost of building affordable housing was reflected in the applications received in the 2019 AHP funding competition, as both development costs per unit and the average amount of AHP subsidy per unit requested continued to trend up. Construction and materials costs paired with persistent shortages of skilled labor continue to hinder efforts to increase the supply of affordable housing nationally and across the Bank’s district, with 80% of general contractors reporting difficulty finding sub-contractors, a recent study by the Associated General Contractors revealed.

Productivity in the construction industry has lagged for decades, according to McKinsey & Company, and low profit margins have not been generating incentives to increase productivity specifically for development of affordable housing. Modular construction is a promising solution for reining in the high cost of building. One such project was awarded $1.5 million in AHP funding in 2019, BRIDGE Housing’s Mission Bay South Block 9, and we expect to see more projects take this approach in the near future.

A creative financing model initiated by Restore Neighborhood LA and FHLBank San Francisco CDFI member Genesis LA Economic Growth Corporation aims to build small-sized affordable housing projects in Los Angeles more quickly and cost-effectively. They have dubbed the new model RETHINK Housing. Rather than using Low Income Housing Tax Credits (LIHTC) and other public funding sources, RETHINK Housing projects use a conventional CDFI loan (supported by 15-year rental subsidy contracts from HUD’s Housing Choice Voucher Program or the Department of Health Services) and AHP grants, with limited sponsor equity sometimes used for construction and permanent financing. The hard loan from Genesis LA ensures essential financing for all phases of the project, including predevelopment, construction, and permanent. Proponents of the RETHINK Housing model are advocating for it to be widely adopted throughout the state.

The Bank awarded AHP grants to three RETHINK Housing projects located in Los Angeles in 2019.

  • Jovenes 4th Street is one the first projects to use the new financing model. The project will serve homeless youth 18 to 24 years old within an 8-unit permanent housing complex. Case management and supportive services will be delivered by the sponsor and the county. 
  • Greater Cornerstone Homes is an 8-unit permanent development for homeless individuals, who will receive intensive case management and supportive services. 
  • Willowbrook Housing is a 7-unit development that will transform a vacant lot into a new contemporary one-story building with studio units for chronically homeless individuals. Common spaces will include an office for meetings with service providers and an outdoor courtyard with planting and seating areas.

For Jovenes 4th Street and Greater Cornerstone Homes, Genesis LA Economic Growth will be the permanent lender and has also been approved to receive a total of $1.75 million in CIP advances to finance pre-development and construction. Other noteworthy projects from the 2019 funding competition include:

  • New Hope Housing Dale Carnegie in Houston, Texas, is a 170-unit single room occupancy permanent supportive housing project for homeless and special needs individuals and the first affordable housing development constructed after Hurricane Harvey. To help finance speedy replacement of affordable housing destroyed by the Texas storms, Texas Governor Abbott mandated that all 2018 LIHTC developments would need to close on financing and break ground by the end of 2018. 
  • 1064 Mission Street in San Francisco, California, will create 256 units of affordable supportive housing for formerly homeless adults and seniors, with an urgent care clinic onsite. The Conquering Homelessness through Employment in Food Services (CHEFS) culinary education program will enroll qualified residents in a 6-month program featuring classroom instruction, hands-on training in institutional and restaurant settings, and help with job placement and retention.
  • 29 Palms II Apartments in Phoenix, Arizona, will provide supportive housing for senior citizens and adults with Autism Spectrum Disorder (ASD). First Place Transition Academy will help young adults with ASD develop functional life skills and pursue employment or post-secondary education opportunities. The sponsor will also deliver services in tandem with First Place Transition Academy to enhance the lives of seniors. 
  • North Harbor Village in Santa Ana, California, will transform a former Budget Inn hotel into permanent supportive housing for formerly homeless veterans. Residents will be offered intensive case management, life skills training, and substance abuse counseling services onsite, as well as access and transportation to behavioral and general healthcare providers. 
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AHP Modernization: Preparing for Full Implementation of the Final Rule

The FHFA published its final rule amending the Affordable Housing Program regulation on November 28, 2018, with an effective date of December 28, 2018. In general, full implementation will aid the Bank in administering the program efficiently. The deadline for implementation of the final rule is January 1, 2021, except for certain provisions related to changes to owner-occupied retention policies and procedures, which had to be implemented by January 1, 2020. 

FHLBanks have some flexibility to adopt some or all of the final rule amendments early, and the Bank has implemented several provisions. For the Bank’s homeownership set-aside programs, WISH and IDEA, the maximum subsidy amount per household was increased and owner-occupied retention requirements were revised. For the competitive AHP, the Bank adopted monitoring requirements related to tenant income documentation for LIHTC projects and project sponsor notification of LIHTC project noncompliance. The Bank also revised its direct subsidy agreements and retention agreement templates for homeownership and rental projects to incorporate these changes.

Pursuant to the final rule, in July 2019, FHLBank San Francisco asked affordable housing and economic development practitioners and advocates to identify specific housing and economic development needs and priorities in the geographic areas they serve by answering

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The FHFA published its final rule amending the Affordable Housing Program regulation on November 28, 2018, with an effective date of December 28, 2018. In general, full implementation will aid the Bank in administering the program efficiently. The deadline for implementation of the final rule is January 1, 2021, except for certain provisions related to changes to owner-occupied retention policies and procedures, which had to be implemented by January 1, 2020. 

FHLBanks have some flexibility to adopt some or all of the final rule amendments early, and the Bank has implemented several provisions. For the Bank’s homeownership set-aside programs, WISH and IDEA, the maximum subsidy amount per household was increased and owner-occupied retention requirements were revised. For the competitive AHP, the Bank adopted monitoring requirements related to tenant income documentation for LIHTC projects and project sponsor notification of LIHTC project noncompliance. The Bank also revised its direct subsidy agreements and retention agreement templates for homeownership and rental projects to incorporate these changes.

Pursuant to the final rule, in July 2019, FHLBank San Francisco asked affordable housing and economic development practitioners and advocates to identify specific housing and economic development needs and priorities in the geographic areas they serve by answering a six-question survey. The Bank sent the survey to members of the Advisory Council, member financial institutions, nonprofit housing developers that use the Bank’s community programs, state and local housing finance agencies, and other interested community organizations across the Bank’s three-state district of Arizona, California, and Nevada. 

The Bank received 181 survey responses from organizations that collectively serve every county in the Bank’s district. The information and expert insights gathered through the survey, combined with secondary research and other information collected from stakeholders, has been used to inform development of the Bank’s Targeted Community Lending Plan, which is ongoing.

As described above, the Bank implemented some provisions of the AHP regulation amendments early and, in consultation with the Advisory Council, made revisions to its AHP Implementation Plan (IP). Separate from implementation of the regulation amendments and in preparation for the 2020 AHP funding competition, the Bank, with Advisory Council support, made the following revisions to the IP. 

Scoring Categories:

  • Sponsorship by a Nonprofit Organization or Government Entity: Requirements related to nonprofit status, ownership and voting interest, point allocation, and documentation have been revised to streamline scoring, enhance monitoring, codify current practices, and align with other Federal Home Loan Banks. 
  • Community Stability scoring category: Removed three scoring features in this category, reduced the total points available by two, and clarified documentation requirements for two other features under the Revitalizing Neighborhoods by Optimizing Project Site Use scoring section.
  • In-District Projects scoring category: Points have been increased from three to five, to address persistent affordable housing challenges throughout the Bank's district. This is also responsive to the amount of funds expected to be available for the 2020 AHP funding competition.
  • Housing for Homeless Households: Language was added to clarify the applicable homeless definition for projects awarded funds prior to 2017. 

Maximum Subsidy Request: 

  • The maximum subsidy a project may request is decreased from $1.5 million to $1.25 million in anticipation of a significant reduction in the total amount of funds available for the 2020 AHP funding competition.

More details about the most recent Implementation Plan revisions are available at fhlbsf.com.

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WISH & IDEA: Opening Doors for First-Time Homebuyers

Across our western region, income disparity just keeps growing. WISH and IDEA matching grants help low- to moderate-income households overcome the biggest barriers to homeownership by providing subsidies for downpayment and closing costs.

In 2019, the Bank allocated $9.3 million to fund matching grants for low- and moderate-income   individuals and families aspiring to own a home of their own. With $8.9 million allocated to WISH and $400,000 allocated to IDEA, 39 Bank members are helping homebuyers in Arizona, California, Nevada, and other states where Bank members do business. Six of these members are first-time participants. 

Early adoption of the set-aside provision of the amended AHP regulation allowed the Bank to raise the maximum grant amount from $15,000 to $22,000, offering a 4-to-1 match to eligible homebuyers, up from 3-to-1 in prior years. The increase means that members can open the door to homeownership to more families in high-cost areas of the Bank’s district. In 2019, 60% of WISH and IDEA disbursement requests were for amounts larger than the original $15,000 maximum grant. 

WISH and IDEA grants match the savings of aspiring homebuyers and help them put down roots in the community and build wealth through homeownership, which is at the

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Across our western region, income disparity just keeps growing. WISH and IDEA matching grants help low- to moderate-income households overcome the biggest barriers to homeownership by providing subsidies for downpayment and closing costs.

In 2019, the Bank allocated $9.3 million to fund matching grants for low- and moderate-income   individuals and families aspiring to own a home of their own. With $8.9 million allocated to WISH and $400,000 allocated to IDEA, 39 Bank members are helping homebuyers in Arizona, California, Nevada, and other states where Bank members do business. Six of these members are first-time participants. 

Early adoption of the set-aside provision of the amended AHP regulation allowed the Bank to raise the maximum grant amount from $15,000 to $22,000, offering a 4-to-1 match to eligible homebuyers, up from 3-to-1 in prior years. The increase means that members can open the door to homeownership to more families in high-cost areas of the Bank’s district. In 2019, 60% of WISH and IDEA disbursement requests were for amounts larger than the original $15,000 maximum grant. 

WISH and IDEA grants match the savings of aspiring homebuyers and help them put down roots in the community and build wealth through homeownership, which is at the heart of the Bank’s mission. Suzie Zavala, a newly single mother in Mesa, Arizona, shared her story of how a WISH grant, delivered through member TruWest Credit Union, provided a boost to her bid for independence in the Spring 2019 issue of the Bank’s Community Works Newsletter. 

Since the first homebuyer received a grant in 2000, the Bank has funded nearly $109 million in WISH and IDEA matching grants, helping more than 7,900 households realize their dream of owning a home of their own.

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Credit Products: Moving Economic Development and Affordable Housing Forward

The Bank’s Community Investment Cash Advance (CICA) programs offer Bank members access to discounted advances that they, in turn, can lend to support affordable housing, homeownership, neighborhood revitalization, and economic development in low- to moderate-income communities. 

In 2019, members borrowed:

  • $268 million in Advances for Community Enterprise (ACE) Program funds to support community lending and economic development activities, including small business loans. The funding is expected to create or retain over 2,300 jobs.
  • $1.1 billion in Community Investment Program (CIP) advances. The 35 CIP advances will be used by 12 different members to fund mortgages for low- and moderate-income households, to finance first-time homebuyer programs, to create and maintain affordable housing, or to support other eligible lending activities related to housing for low- and moderate-income families.

In addition, the Bank issued six CIP Standby Letters of Credit on behalf of three members to credit enhance financing for multifamily rental projects in Northern and Southern California. 

AHEAD Funding For Economic Development 

In 2019, the Bank’s Board of Directors allocated $1.5 million for AHEAD grants to facilitate and strengthen relationships between member financial institutions and nonprofits working to make communities more equitable and resilient and create new economic opportunities for people living in low- and moderate-income communities across the district. 

The Bank reviewed 193 applications submitted in 2019 before selecting 55 AHEAD grant winners. Thirty-five participating Bank members, including seven that sponsored winning applications for the first time, delivered grants ranging from $20,000 to $50,000 to 55 nonprofits in Arizona, California, and Nevada.

A number of projects proposed in 2019 are workforce-related. They target underserved demographic groups like disconnected youth, offering them the opportunity to become part of the workforce for in-demand jobs in digital arts, farming, and construction and related trades, and student DREAMERs, who need support to complete an education that prepares them for jobs in healthcare or technology.

The eligibility criteria for AHEAD is deliberately broad. Local nonprofits with creative approaches to strengthening communities and proven expertise in creating jobs, promoting entrepreneurship, or providing education or services partner with Bank members on a wide range of initiatives to address inequities and boost opportunity. For example, among the 2019 AHEAD

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In 2019, the Bank’s Board of Directors allocated $1.5 million for AHEAD grants to facilitate and strengthen relationships between member financial institutions and nonprofits working to make communities more equitable and resilient and create new economic opportunities for people living in low- and moderate-income communities across the district. 

The Bank reviewed 193 applications submitted in 2019 before selecting 55 AHEAD grant winners. Thirty-five participating Bank members, including seven that sponsored winning applications for the first time, delivered grants ranging from $20,000 to $50,000 to 55 nonprofits in Arizona, California, and Nevada.

A number of projects proposed in 2019 are workforce-related. They target underserved demographic groups like disconnected youth, offering them the opportunity to become part of the workforce for in-demand jobs in digital arts, farming, and construction and related trades, and student DREAMERs, who need support to complete an education that prepares them for jobs in healthcare or technology.

The eligibility criteria for AHEAD is deliberately broad. Local nonprofits with creative approaches to strengthening communities and proven expertise in creating jobs, promoting entrepreneurship, or providing education or services partner with Bank members on a wide range of initiatives to address inequities and boost opportunity. For example, among the 2019 AHEAD grant winners are:

  • A New Way of Life Reentry Project will receive a $20,000 grant through member Pacific Premier Bank to offer job training, career coaching, and personal mentoring to formerly incarcerated women in Los Angeles County. 
  • JUMA Ventures will receive a $20,000 grant through SAFE Credit Union for a program that will provide disconnected youth in Sacramento with their first job working concession stands at local sports venues, along with financial literacy training to help them manage the money they earn. 
  • The Fresno Area Hispanic Foundation will receive a $35,000 grant through member Central Valley Community Bank to deliver bilingual business training to Latina entrepreneurs in California’s Central Valley.
  • Jefferson Economic Development Institute will receive a $35,000 grant, through member Merchants Bank of Commerce and in partnership with a tech company, to help women entrepreneurs in rural Northern California develop a digital presence for their businesses.
  • JobPath will receive a $40,000 grant through member Wells Fargo National Bank West to help DREAMER students at a community college in Tucson pay for tuition to stay in school and work towards careers in healthcare and technology. 
  • United States Veterans Initiative will receive a $25,000 grant through Charles Schwab Bank to support a workforce development program for veterans to enter the conference/trade show installation and design field in the Las Vegas market.
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Supporting Disaster Relief and Recovery Efforts

Beginning in 2017, the Bank took several steps to provide immediate relief to communities affected by natural disaster and support rebuilding efforts, including direct donations, matching donations for members, and raising the per-member limits for CIP and ACE discounted advances used to fund recovery and rebuilding efforts in affected areas.

At the end of 2019, the Bank increased the total amount available for disaster relief matching donations from $250,000 to $600,000 and increased the maximum match per member financial institution from $10,000 to $25,000.

As of December 31, 2019, 33 FHLBank San Francisco members have contributed or pledged a total of $820,970 in charitable donations to organizations serving fire victims and affected communities, and the Bank has donated or pledged $296,596 in matching donations to the same organizations.

The Bank continues to allow exceptions to normal per member limits on the discounted advance programs – Community Investment Program (CIP) and Advances for Community Enterprise (ACE) - to support disaster relief efforts throughout the Bank’s three-state district. 

Building Disaster Resiliency with Additional Funding through AHEAD

In response to the further devastation caused by recent natural disasters, especially the wildfires that raged through parts of the Bank’s district in 2018-19, in 2019 the Bank used the AHEAD Program to offer up to $1 million in additional funding to support economic recovery efforts located in FEMA-declared disaster areas. Bank members working with local government agencies, tribal associations, or regional nonprofit Economic Development Districts to help communities they serve rebuild and recover were encouraged to apply for this specially targeted funding. 

The Bank awarded five grants to support disaster recovery and resiliency efforts in California, delivered through Bank members to regenerate economic activity in affected areas, redevelop affordable housing in an equitable way for displaced residents, and enhance their community’s preparedness for future disasters: 

  • The Valley Fire in Lake County in 2015 destroyed over 2,000 structures in the Cobb Mountain community. The Bank awarded Cobb Area Council a $200,000 grant, delivered through member Community First Credit Union, to draft and implement an economic development strategy to revitalize the Cobb Mountain community. 
  • The Tubbs and Nuns fires in October 2017 destroyed almost 8,000 structures, and displaced countless lower-income households. The Bank awarded Sonoma County Community Development Commission a $200,000
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In response to the further devastation caused by recent natural disasters, especially the wildfires that raged through parts of the Bank’s district in 2018-19, in 2019 the Bank used the AHEAD Program to offer up to $1 million in additional funding to support economic recovery efforts located in FEMA-declared disaster areas. Bank members working with local government agencies, tribal associations, or regional nonprofit Economic Development Districts to help communities they serve rebuild and recover were encouraged to apply for this specially targeted funding. 

The Bank awarded five grants to support disaster recovery and resiliency efforts in California, delivered through Bank members to regenerate economic activity in affected areas, redevelop affordable housing in an equitable way for displaced residents, and enhance their community’s preparedness for future disasters: 

  • The Valley Fire in Lake County in 2015 destroyed over 2,000 structures in the Cobb Mountain community. The Bank awarded Cobb Area Council a $200,000 grant, delivered through member Community First Credit Union, to draft and implement an economic development strategy to revitalize the Cobb Mountain community. 
  • The Tubbs and Nuns fires in October 2017 destroyed almost 8,000 structures, and displaced countless lower-income households. The Bank awarded Sonoma County Community Development Commission a $200,000 grant, delivered through member Luther Burbank Savings, to develop a countywide interactive affordable housing development map to ensure future development is strategically placed in high opportunity areas. 
  • When the Cascade Fire swept through Yuba County in October 2017, the area was still reeling from the hazard posed by the potential failure of the Oroville Dam earlier. The Bank awarded Yuba-Sutter Economic Development Corporation a $161,250 grant, delivered through member Rabobank, to update a federally mandated disaster mitigation plan.
  • The Camp Fire that devastated the town of Paradise in November 2018 was the largest wildfire in California’s history and destroyed over 95% of the town’s structures. The Bank awarded 3CORE a $200,000 grant, delivered through member Tri Counties Bank, to support the Butte County town’s disaster preparedness and will identify small and local businesses that can provide resources, technical assistance, and loan capital for rebuilding.
  • The Carr Fire in July 2018 destroyed over 1,800 structures in Shasta County. The Bank awarded Superior California Economic Development a $20,000 grant, delivered through member Cornerstone Community Bank, to create an economic disaster resiliency strategy.
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Supporting Community Program Users

In 2019, Community Investment team members conducted:

  • Five webinars on the AHP competitive application process 
  • Seven AHP compliance webinars 
  • Three WISH & IDEA in-person workshops—in Arizona, Nevada, and California—plus three webinars 
  • Two AHEAD webinars on the application, disbursement, and monitoring processes 

Reaching Out to Engage with Diverse Stakeholders

Effective outreach is part of what helps the Bank further its mission and achieve its Community Lending Plan goals. The Bank establishes and nurtures relationships with policymakers and public officials, government agencies, affordable housing advocates and experts, and a variety of community and economic development organizations. 

In 2019, the Bank sponsored, co-sponsored, or participated in over 90 public and industry events and affordable housing and community development conferences, forums, roundtables, and meetings, including:

Yurok Tribe Meeting, Klamath, CA
The Bank met with the Yurok Tribe to identify district housing and economic development needs and share information about the FHLBank System and the credit products and community programs offered by the Bank.

California Association of Local Housing Finance Agencies Conference, Sacramento, CA
The Bank participated on a panel and shared information about the WISH and IDEA homeownership programs at the annual CAL-ALHFA conference. 

Rural Housing Summit, Pacific Grove, CA
The Bank participated in the annual California Coalition for Rural Housing Summit (CCRH), where topics included diversity and inclusion in the rural housing sector, farmworker housing, land and entitlement reform, rural CRA investments, rural homelessness, and tenant protections. 

Tribal Housing Roundtable, Pacific Grove, CA
At the 5th annual Tribal Housing Roundtable hosted

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Effective outreach is part of what helps the Bank further its mission and achieve its Community Lending Plan goals. The Bank establishes and nurtures relationships with policymakers and public officials, government agencies, affordable housing advocates and experts, and a variety of community and economic development organizations. 

In 2019, the Bank sponsored, co-sponsored, or participated in over 90 public and industry events and affordable housing and community development conferences, forums, roundtables, and meetings, including:

Yurok Tribe Meeting, Klamath, CA
The Bank met with the Yurok Tribe to identify district housing and economic development needs and share information about the FHLBank System and the credit products and community programs offered by the Bank.

California Association of Local Housing Finance Agencies Conference, Sacramento, CA
The Bank participated on a panel and shared information about the WISH and IDEA homeownership programs at the annual CAL-ALHFA conference. 

Rural Housing Summit, Pacific Grove, CA
The Bank participated in the annual California Coalition for Rural Housing Summit (CCRH), where topics included diversity and inclusion in the rural housing sector, farmworker housing, land and entitlement reform, rural CRA investments, rural homelessness, and tenant protections. 

Tribal Housing Roundtable, Pacific Grove, CA
At the 5th annual Tribal Housing Roundtable hosted by CCRH, the Bank presented information about the Bank's WISH and IDEA homeownership grant programs and how they work in conjunction with the California Housing Finance Agency’s HUD 184 Indian Home Loan program. 

America’s SBDC Annual Conference, Long Beach, CA
The Bank attended America's Small Business Development Center Conference, an annual gathering for small business development center professionals. SBDCs are certified by the SBA to provide free consulting and resources for small businesses and entrepreneurs. 

California Native American Day, Sacramento, CA
In partnership with CalHFA, the Bank exhibited at the 52nd Annual Native American Day and shared information on how the WISH and IDEA homeownership grant programs can work for tribal households.

Congressional Staff Briefing, Philadelphia, PA
With the Federal Home Loan Banks of New York and Pittsburgh, the FHLBank San Francisco co-hosted a briefing for 31 congressional and senate staffers representing 19 congressional districts and 7 senatorial districts. The two-day event included a bus tour of community and economic development projects in Philadelphia and a celebration for a local AHP-funded project.

Economic Inclusion Forum, San Francisco, CA
The Bank participated in a panel discussion at a forum hosted by the Federal Deposit Insurance Corporation on banking access innovations and engaging unbanked and underbanked communities.

Investing in Resilience & Recovery in Butte County, Paradise, CA

The Bank participated in a meeting hosted by the Federal Reserve Bank of San Francisco and the North Valley Community Foundation focused on housing needs and redevelopment in the wake of the Camp Fire in Paradise, the most destructive wildfire in the history of California. 

Nevada Lunch & Learn, Las Vegas – Nevada Housing Coalition
Senator Catherine Cortez Masto and FHLBank San Francisco welcomed more than 50 local lenders, affordable housing developers, and nonprofits with expertise in economic development to a half-day workshop on how the Bank's grants and discounted credit products can be used to finance affordable housing and community development.

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In Closing

On behalf of the Advisory Council and Vice Chair Carol Ornelas of Visionary Homebuilders, I would like to thank the Bank’s Board of Directors, Bank team members, member financial institutions, and their community partners for their dedication to finding and delivering meaningful solutions to existing and emerging affordable housing and economic development challenges.

Chairs of the Advisory Council traditionally use this space to welcome new members to the table and bid farewell to members whose terms serving the Council have ended.

At the time of writing this year’s report, I and my fellow Council members are still grieving the loss of our colleague Dean Hojo Matsubayashi, who served on the Bank’s Advisory Council from 2010 to 2018. In his obituary he is described as a passionate and courageous leader, loving and generous family man, warm and compassionate friend, coalition and bridge builder, and the Executive Director of the Little Tokyo Service Center since 2010. Dean passed away at the age of 49 on September 4, 2019, after waging a fierce 15-month battle against glioblastoma of the brain stem. He dedicated his life to creating safe affordable housing and thriving communities for all.

Advisory Council member Dora Leong Gallo, CEO of

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On behalf of the Advisory Council and Vice Chair Carol Ornelas of Visionary Homebuilders, I would like to thank the Bank’s Board of Directors, Bank team members, member financial institutions, and their community partners for their dedication to finding and delivering meaningful solutions to existing and emerging affordable housing and economic development challenges.

Chairs of the Advisory Council traditionally use this space to welcome new members to the table and bid farewell to members whose terms serving the Council have ended.

At the time of writing this year’s report, I and my fellow Council members are still grieving the loss of our colleague Dean Hojo Matsubayashi, who served on the Bank’s Advisory Council from 2010 to 2018. In his obituary he is described as a passionate and courageous leader, loving and generous family man, warm and compassionate friend, coalition and bridge builder, and the Executive Director of the Little Tokyo Service Center since 2010. Dean passed away at the age of 49 on September 4, 2019, after waging a fierce 15-month battle against glioblastoma of the brain stem. He dedicated his life to creating safe affordable housing and thriving communities for all.

Advisory Council member Dora Leong Gallo, CEO of A Community of Friends, worked with Dean on a variety of community development issues in Los Angeles. She is grateful for the opportunity to get to know Dean better through their work together on the Advisory Council:

Dean and I would often fly in the night before an AHAC meeting, and while we might have obligations to others when we arrived at the hotel, we frequently made time to meet up for drinks later in the evening. Dean was one of the funniest and most passionate people I knew. He loved his wife, his kids, and his friends, and he was committed to serving his community. He had a knack for making people comfortable, and everyone was instantly a friend. Dean was also a messy person, which he used as part of his humor to great effect to ease tension in stressful times (which was often in our line of work).  Dean’s legacy is both visible and invisible, reflected in Little Tokyo Service Center’s Terasaki Budokan, and in the hearts of many of us who called him a friend.

-Dora Leong Gallo

Asked to reflect on her own relationship with Dean, fellow Advisory Council member Tunua Thrash-Ntuk, Executive Director of Los Angeles Local Initiatives Support Corporation, composed a poem in his honor:

To my dearest friend Dean

On someone who I could always lean

Your infectious personality was welcomed at every scene

When you fell ill, all I could do was scream

No one could have ever imagined something happening to a leader who you would describe as the complete opposite of mean

The way you have impacted the world couldn’t be contained in a single ream

Your wisdom from which I would never want to wean

There seemed to be so much more from your erudition I had to glean

I miss you my dearest friend Dean

-Tunua Thrash-Ntuk

Our thanks to Dora and Tunua for helping us honor the personal as well as professional legacy of our friend and colleague, Dean Matsubayashi. We will carry his memory with us as we continue our efforts to create affordable housing and thriving communities for all.

Finally, I am pleased to report that in 2020 the Bank is making available $37.8 million in funding for the competitive application AHP and $9.5 million for the WISH and IDEA programs. Our larger community of local lenders and affordable housing and community and economic development practitioners and organizations will put these valuable resources to good use.   

Respectfully submitted,

Steve Hastings

Chair

Affordable Housing Advisory Council

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