Press Release

Maximum grant size per household raised to $15,000

San Francisco—The Federal Home Loan Bank of San Francisco has announced $4.6 million in matching grants for very low- to moderate-income households saving to buy a home in Arizona, California, Colorado, and Nevada. The Bank has also raised the maximum per unit subsidy under the Individual Development and Empowerment Account (IDEA) Program from $10,000 to $15,000.

"The IDEA Program provides a powerful financial tool to help lower-income households realize the dream of homeownership," said Jim Yacenda, Vice President and Community Investment Officer at the Federal Home Loan Bank of San Francisco. "Raising the maximum grant size per household will make the program even more effective in helping aspiring homebuyers, especially in high-cost areas."

Through the Bank’s member financial institutions, IDEA Program grants match up to $3 for every dollar saved by the homebuyer. The funds may be used for downpayment or closing costs. Participating households may earn up to 80% of area median income and must be enrolled in a Family Self-Sufficiency (FSS) program through a local public housing authority or be enrolled in an Individual Development Account (IDA) program through a nonprofit organization or through a Bank member. To qualify for the matching subsidy, homebuyers must complete a homeownership counseling program, save money toward the purchase of a home for at least 10 months, and then qualify for a mortgage on a home they are able to purchase.

Of the $4.6 million allocated in 2003, the Bank awarded $1.3 million to 20 FSS programs and $3.3 million to 43 IDA programs through 20 member financial institutions. "Demand for IDEA funds increased substantially this year, as IDA programs have matured and word has spread about the IDEA Program," said Yacenda, adding that the Bank received $8.6 million in IDEA grant requests in 2003, compared to $4.8 million requested in 2002.

In California, the 2003 IDEA awards are expected to benefit homebuyers in Anaheim, Benicia, Chula Vista, Culver City, Eureka, Fairfield, Fresno, Hayward, Inglewood, Klamath, Lompoc, Long Beach, Los Angeles, Merced, National City, Newbury Park, North Hollywood, Oakland, Oceanside, Oxnard, Richmond, Riverside, Sacramento, Salinas, San Diego, San Francisco, San Jose, San Leandro, San Ysidro, Santa Cruz, Santa Maria, Saticoy, Ukiah, Vallejo, and West Sacramento. In Arizona, 2003 IDEA awards are also expected to benefit homebuyers in the communities of Avondale, Chandler, Mesa, Phoenix, Scottsdale, Tempe, Tucson, and Yuma. This year’s awards will also benefit homebuyers in Las Vegas, Nevada; Reno, Nevada; and Denver, Colorado. Since its inception in 2000, the Bank has committed $9.2 million in IDEA Program matching grants.

About the 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. The Bank serves and is owned by 348 commercial bank, savings institution, credit union, thrift and loan, and insurance company members headquartered in Arizona, California, and Nevada.

Contact:
Amy Stewart, (415) 616-2605
stewarta@fhlbsf.com

Tracy Fine, (415) 616-2707
finet@fhlbsf.com

# # #