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Improved terms expand access to capital and liquidity for underserved communities
SAN FRANCISCO, Oct. 22, 2024 (GLOBE NEWSWIRE) — The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) released enhancements to its credit and collateral risk policy that will enable greater lending by non-depository Community Development Financial Institutions (CDFIs) and state-charted Housing Finance Agencies (HFAs) to better support the low-income communities they serve. The enhancements align with the Bank’s mission to support affordable housing and economic development and are designed to provide increased liquidity to support community development for communities in need.
“We have spent significant time listening to our CDFI members and analyzing ways we can expand our relationships with CDFIs and HFAs, working together toward a shared mission of advancing economic opportunity and affordable housing. Our new underwriting enhancements are a first step toward increasing access and liquidity,” said Alanna McCargo, president and chief executive officer of FHLBank San Francisco. “By improving our terms and funding access for our non-depository CDFI members and increasing financing availability for housing associates like HFAs, we will be able to increase the availability of funds to benefit the communities that we collectively serve. Furthermore, we will continue to partner with our CDFI members and housing associates to innovate new programs that support their efforts, as there is a lot of untapped opportunity to expand in this space.”
The main borrowing enhancements include:
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Increased credit terms from 5 years to up to 20 years on collateral, including Low Income Housing Tax Credit (LIHTC) properties, for non-depository CDFIs that can offer financing for the life of large affordable housing projects
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Increased borrowing availability on posted collateral to support affordable housing and community development projects
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Housing associate program limits increased from $250 to $500 million to continue to support state housing finance agency programs
FHLBank San Francisco will discuss the impact of these enhancements with CDFIs this week at the annual Opportunity Finance Network Conference in Los Angeles, the largest annual gathering of CDFIs. The Bank looks forward to engaging, collaborating and celebrating the work CDFIs and HFAs do to expand economic opportunity in the communities they serve.
CDFIs and HFAs are on the front lines of providing capital to low-income communities. The FHLBank San Francisco supports the missions of our non-depository CDFIs members and housing associates by providing access to low-cost capital and grants for affordable housing and economic development. With non-depository CDFIs traditionally finding it challenging to obtain long-term, affordable financing, FHLBank San Francisco has worked to partner with them to enhance their ability to serve their customers and communities. This important partnership increases the supply of affordable housing and facilitates homeownership and economic development initiatives in underserved communities.
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