Press Release

National Bank of Arizona and Self-Help Network to Assist 100 Low-Income Families

TUCSON, AZ—The Federal Home Loan Bank of San Francisco (Bank) has awarded a $1 million grant to National Bank of Arizona, who in partnership with the Arizona Self-Help Network, will use the funds to help 100 low-income households purchase homes in six Tucson and Southern Arizona communities.

Under the program, each of the 100 homebuyers will receive a $10,000 subsidy, of which $8,500 will be used directly to lower their mortgage balance and monthly payments. The funding was awarded under the Bank’s Affordable Housing Program, which recently announced $19.3 million in grants in the first round of its 2004 AHP funding.

"This grant will help hard-working families in my district afford quality housing in the communities they already call home," said Rep. Raul Grijalva (D-AZ). "The Affordable Housing Program helps our communities address their affordable housing needs."

The Arizona Self-Help Network program allows low-income families to contribute 65% of the labor in constructing the homes they will eventually purchase. The houses are built in groups of 10 to 12, and each family helps the others construct their homes. No family can move in until all the homes in a group are completed. Each home is valued at about $94,000, but with the AHP subsidy and sweat equity the sales price is approximately $57,000, making the homes affordable to low-income families.

"This is a wonderful program that gives low-income residents an opportunity to own a home,’’ said Lawrence H. Parks, the Bank’s Senior Vice President for External and Legislative Affairs. "The Bank is proud to make a contribution that will have such a positive impact on the lives of these families.’’

National Bank of Arizona is the Bank financial institution member participating in the project, and the sponsor is Comité de Bien Estar, a nonprofit community development corporation that builds affordable housing for migrant and seasonal farmworkers.

"Many of the participants are in the highly volatile seasonal produce industry that can result in fluctuating incomes throughout he year,’’ said John McGrady, the development officer for Comité de Bien Estar. "The subsidy for each of these families will lower the monthly mortgage payments by up to $50; that amount is significant for families earning between $12,003 and $28,392 a year. It can make the difference between renting or enjoying the American dream of homeownership.’’

The communities to be served by the grant are San Luis, Somerton, Eloy, Tucson, Nogales, and Douglas.

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 also funds community investment programs that help members create affordable housing and promote community economic development. The Bank serves and is owned by 337 commercial bank, savings institution, credit union, thrift and loan, and insurance company members headquartered in Arizona, California, and Nevada.

Contact:
Dwight Alexander, (415) 616-2678
alexandd@fhlbsf.com

# # #