Affordable Housing Advisory Council Annual Report: Pursuing Solutions to Scarcity

2021 REPORT FROM THE CHAIR

Scarcity has been center stage throughout the pandemic. At the beginning of the COVID-19 public health crisis we were shocked by the scarcity of hospital beds and personal protective equipment, by empty grocery store shelves and scenes of hours-long queues straining the supplies at local food banks. While federal aid packages, including income replacement solutions and housing protections, were passed relatively quickly, the local rollouts were slow, with some communities more ready to take in and distribute resources than others. Vaccines were developed at warp speed, but supplies were limited and fragile, so each of us had to wait our turn for a potentially life-saving jab. 

Early actions taken by federal, state, and local governments to respond to the pandemic and its economic fallout certainly lessened the hardship of many in 2020 and 2021. Demonstrating the truth of the old adage ‘where there’s a will, there’s a way,’ the federal government put cash in people’s pockets, extended unemployment benefits, and made eviction prevention and mortgage forbearance the priorities they should be in such an unprecedented crisis. Much that needed to be urgently done to mitigate both human suffering and lasting damage to our economy was done,  and done fairly quickly.

That’s why it is so disappointing to see that the kind of “will” we witnessed in the early days of the pandemic is diminishing now, when it comes to spending additional federal resources on long-standing problems like an affordable housing crisis that no one can deny exists. While many state and local housing officials are offering new housing programs that will help on the margins, the Build Back Better plan, with its once-in-a-generation promise of meaningfully addressing acute, chronic needs for new affordable housing options throughout the country, has so far been stymied. 

Members of FHLBank San Francisco’s Affordable Housing Advisory Council work every day to meet the needs of 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. We work to make a difference in the lives of chronically underserved people and whole communities that lack economic opportunity. The prospect of returning to the pre-pandemic normal of too few resources to create affordable housing and equitable economic opportunity is unsustainable. 

The ongoing scarcity of stable, affordable housing is a crisis that has been decades in the making, the result of policy choices that shrunk the federal government’s role in providing housing. In 1979 the federal government funded 347,600 new units of low-income housing; in 1983 that number was only 2,630. Today there is, according to the Urban Institute, a shortage of more than 7 million affordable homes nationally. Hundreds of thousands of Americans experience homelessness each year, and nearly a quarter of all renting households put 50 percent of their monthly income toward rent, leaving never enough left over for other essential expenses. 

An adage of more recent vintage comes to mind in this context: If you are not changing it, you are choosing it. The pandemic has demonstrated that it is possible to make policy choices that benefit large numbers of our neighbors, and especially the most vulnerable among us. We have solutions to this housing scarcity, if we would only choose to move them forward. 

Photo of house under construction

Scarcity and Solution-Starters in the Bank’s District

In Arizona only 2,000 affordable units will be generated this year, against a documented need for 276,000 new units. Thirty-five percent of very low-income renters are severely cost burdened, as are 76 percent of extremely low-income families and individuals. And tragically in Phoenix right now, vulnerable seniors are a fast-growing demographic of unhoused people, as they find themselves turned away by shelters with too few beds. 

California is home to 28 percent of the nation’s homeless population and 51 percent of the unsheltered population. There is a deficit of over 1 million rental homes available and affordable to extremely low-income households, while 60 percent of low-income and 40 percent of moderate-income households are cost burdened. With a median house price of $800,000, the state needs millions of new homes to begin to ensure that everyone has a decent place to live.

Nevada has seen an influx of over 400,000 people settling in the state over the last decade, and with this relocation comes rising demand for and a limited supply of housing. In hot spots like Reno, the percentage of people paying more than 30 percent of their monthly income just for rent is more than 80 percent. According to

In Arizona only 2,000 affordable units will be generated this year, against a documented need for 276,000 new units. Thirty-five percent of very low-income renters are severely cost burdened, as are 76 percent of extremely low-income families and individuals. And tragically in Phoenix right now, vulnerable seniors are a fast-growing demographic of unhoused people, as they find themselves turned away by shelters with too few beds. 

California is home to 28 percent of the nation’s homeless population and 51 percent of the unsheltered population. There is a deficit of over 1 million rental homes available and affordable to extremely low-income households, while 60 percent of low-income and 40 percent of moderate-income households are cost burdened. With a median house price of $800,000, the state needs millions of new homes to begin to ensure that everyone has a decent place to live.

Nevada has seen an influx of over 400,000 people settling in the state over the last decade, and with this relocation comes rising demand for and a limited supply of housing. In hot spots like Reno, the percentage of people paying more than 30 percent of their monthly income just for rent is more than 80 percent. According to the Reno Housing Authority, in the Reno area rents have gone up 91 percent to more than $1,200 a month since 2017. 

And while Nevada’s population is comparable to the City of Chicago, the state receives only 13,000 rental assistance vouchers, compared to 50,000 for Chicago. Most rental assistance is distributed by Housing Authorities in the form of housing choice vouchers (previously known as Tenant-based Section 8) that can be used by a household anywhere they would like to rent. Even more acutely limited is project-based rental assistance, which is needed, along with supportive services, to develop the permanent supportive housing the state needs to successfully serve homeless and special needs households. For vouchers generally, additional challenges to either finding or staying in an existing subsidized unit can result from the U.S. Department of Housing and Development (HUD) lagging behind in its determinations of fair market rents as well as an overall market of rising rents. In Nevada, voucher programs are fully subscribed with lengthy waiting lists.

So far, of the three states that make up FHLBank San Francisco’s district, California has taken the most legislative strides towards prioritizing housing and getting obstacles out of the way through legislative action. The state’s 2021-2022 budget includes $2.75 billion (over two years) for Project Homekey, which converts hotels into housing for the homeless, $500 million to create the Foreclosure Intervention Housing Preservation Program, which will allow nonprofit developers to acquire and preserve small multi-family buildings while keeping existing tenants housed, and $20 million to set up the Bay Area Housing Finance Authority, a regional body that will have the power to fundraise from state, local, and federal sources, as well as the private sector, to produce more affordable housing across the Bay Area. The budget also includes $1.75 billion for the Housing Accelerator Fund to support 92% of stalled affordable housing developments that have received funding from the Department of Housing and Community Development (HCD) but have not yet been able to secure tax exempt bonds and tax credits. A billion dollars in Accelerator Funds were awarded to projects in 2021 and the remainder will be awarded in 2022. The state also set aside $30 million dollars to update California's 24 migrant housing centers, some of which have been in service for over 50 years. 

In July 2021, Arizona created a state Low Income Housing Tax Credit (LIHTC) program which will provide $4 million in credits annually for four years and hopes are that it will incentivize use of 4% tax credits and exempt bonds. Advocates were trying to get an additional $25 million allocated to the State's Housing Trust Fund in 2021, however only $8 million was contributed. In 2021 the Arizona Department of Housing also announced $40 million in American Rescue Plan Act (ARPA) funding for the conversion of hotel units into transitional housing for the homeless. 

Nevada has proposed allocating $500 million in ARPA funding to support affordable housing. Nevada is also allocating an historic $300 million of its 2021 tax-exempt bond allocation to affordable housing projects around the state. Nevada's State Infrastructure Bank is also poised to designate $20 million in funds for affordable housing. State legislative efforts in 2021 also resulted in two successful bills to support affordable housing: SB 12 institutes notification requirements that will help keep existing affordable housing from converting to market rate, while SB 284 extends the use of the state's housing tax credit and makes it more valuable to investors. Because Nevada traditionally lacks the infrastructure for development that Arizona and California have, in March of 2022, FHLBank San Francisco announced a grant to support the Nevada Housing Coalition’s efforts to build up capacity for development in the state.

While solving for scarcity and inequity have been at the heart of the work we do to increase the supply of affordable housing and advance community development through all economic cycles, discussion around FHLBank San Francisco’s virtual Affordable Housing Advisory Council table in 2021 was largely still focused on pandemic-related challenges, including: 

  • Cost of construction across the board: higher and still rising. 
  • Supply chain issues for building materials: persisting and worsening. 
  • Labor shortages: continuing and intensifying, especially in rural areas.
  • Childcare needs: women and other caregivers unable to return to work without it. 
  • The digital divide: lack of broadband limiting access to work-from-home options, education, and other resources.Industry issues: The Great Resignation, return-to-office issues, need to pay staff much more.
  • A hot housing market and investor buyers: low- and moderate-income people who struggle to make the rent or a mortgage payment in ordinary times are squeezed out of buying and at risk of rising rents.

Sharing Knowledge and Exploring Solutions

The annual meeting of Advisory Council chairs and vice-chairs with the Federal Housing Finance Agency and other agencies in Washington, D.C., held virtually last year, provided an opportunity to share perspectives on these and other issues with participants from across the country. It was also an opportunity to take deeper dives into how to better serve Native American and Tribal communities, learn more about appraisal bias, and continue the conversation about racial equity in housing. 

In a similar vein, the 2021 Joint Meeting of FHLBank San Francisco’s board of directors and the Advisory Council was an information-rich event that focused on three specific areas that that the Bank has identified as especially pressing needs in the Bank’s three-state district.

  • Carolina Reid, a City Planning Professor at UC Berkeley and Research Advisor for the Terner Center for Housing Innovation, spoke about addressing California’s housing crisis and need to advance racial equity. 
  • Lynda Hascheff, Executive Director at Opportunity Alliance Nevada, presented on the pandemic’s impact on Black-owned businesses and homeownership in her state of Nevada. 
  • Marvin Burnette of the White Mountain Apache Housing Authority in Arizona spoke about the pandemic’s devastating impact on his community, and how his organization has been putting

The annual meeting of Advisory Council chairs and vice-chairs with the Federal Housing Finance Agency and other agencies in Washington, D.C., held virtually last year, provided an opportunity to share perspectives on these and other issues with participants from across the country. It was also an opportunity to take deeper dives into how to better serve Native American and Tribal communities, learn more about appraisal bias, and continue the conversation about racial equity in housing. 

In a similar vein, the 2021 Joint Meeting of FHLBank San Francisco’s board of directors and the Advisory Council was an information-rich event that focused on three specific areas that that the Bank has identified as especially pressing needs in the Bank’s three-state district.

  • Carolina Reid, a City Planning Professor at UC Berkeley and Research Advisor for the Terner Center for Housing Innovation, spoke about addressing California’s housing crisis and need to advance racial equity. 
  • Lynda Hascheff, Executive Director at Opportunity Alliance Nevada, presented on the pandemic’s impact on Black-owned businesses and homeownership in her state of Nevada. 
  • Marvin Burnette of the White Mountain Apache Housing Authority in Arizona spoke about the pandemic’s devastating impact on his community, and how his organization has been putting the Bank’s community investment programs to work, in partnership with Bank members. 
virtual meeting
Photo of Black family in front of their home

Narrowing the Black Homeownership Gap

In the summer of 2020, as the attention of the nation was focused on the murder of George Floyd and issues of racial injustice, the Bank committed to redoubling its efforts to narrow the persistent and pernicious Black homeownership gap. In October 2021, the Bank announced a $1.5 million collaboration with the Urban Institute to advance racial equity, and the partnership launched the Racial Equity Accelerator for Homeownership. 

The Racial Equity Accelerator will spur mortgage finance research and development in areas that can facilitate and sustain more equitable homeownership, including alternatives to credit scoring models and use of new technologies to overcome historical biases. It will also address the burden of student loan debt, which has a disproportionate effect on the Black community, and product structures that can better support homeowners who experience temporary financial hardship. In the process, the initiative will recognize some of the most promising innovators in each of these areas.

2021 Community Program Results and Outreach Activities

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 continue to be a vital resource for creating new affordable housing, homeownership, and economic opportunities to meet the chronic or newly urgent needs of the communities the Bank and its member financial institutions serve.

Targeted Community Lending Plan

Per the amended Affordable Housing Program (AHP) regulation, the Bank conducts market research annually to identify housing and economic development needs, community lending credit needs, and market opportunities across the Bank’s district of Arizona, California, and Nevada. The Bank consults the Advisory Council, Bank members, housing associates, and economic development organizations in the district to conduct this research and develop and implement a Targeted Community Lending Plan (TCLP) that includes performance goals for the Bank.

Despite the challenges of the pandemic, in 2021, the Bank met or exceeded the goals set in its 2021 Targeted Community Lending Plan.

  • The number of unique members using the Bank’s Community Investment Program (CIP) and Advances for Community Enterprise (ACE) Advances or Letters of Credit or receiving AHEAD Program grants totaled 61.
  • The number of unique members participating in the Bank’s community programs workshops or receiving individual technical assistance sessions was 77.
  • Bank staff actively participated in 76 live or virtual affordable housing and community development industry conferences, meetings workshops and other events.

In the 2022 TCLP, the Bank’s district survey identified family, homeless, permanent, rental, and new construction housing as priorities, with the district’s needs similar to or greater than those of

Per the amended Affordable Housing Program (AHP) regulation, the Bank conducts market research annually to identify housing and economic development needs, community lending credit needs, and market opportunities across the Bank’s district of Arizona, California, and Nevada. The Bank consults the Advisory Council, Bank members, housing associates, and economic development organizations in the district to conduct this research and develop and implement a Targeted Community Lending Plan (TCLP) that includes performance goals for the Bank.

Despite the challenges of the pandemic, in 2021, the Bank met or exceeded the goals set in its 2021 Targeted Community Lending Plan.

  • The number of unique members using the Bank’s Community Investment Program (CIP) and Advances for Community Enterprise (ACE) Advances or Letters of Credit or receiving AHEAD Program grants totaled 61.
  • The number of unique members participating in the Bank’s community programs workshops or receiving individual technical assistance sessions was 77.
  • Bank staff actively participated in 76 live or virtual affordable housing and community development industry conferences, meetings workshops and other events.

In the 2022 TCLP, the Bank’s district survey identified family, homeless, permanent, rental, and new construction housing as priorities, with the district’s needs similar to or greater than those of the U.S. overall, especially in the areas of income and homelessness. The Bank’s three-state district has the greatest shortage of affordable housing for extremely low-income households in the U.S. 

The survey once again found significant racial and gender disparity in income, housing cost burden, homelessness, homeownership, small business ownership, and the impact of the COVID-19 pandemic. The survey confirms that supportive services are an essential part of housing and economic needs both nationally and in the district. 

The Bank has created TCLP goals for 2022 to strengthen the impact of the programs and build on past milestones. The Plan also describes potential changes to the Bank’s programs to address certain district priorities, including:

  • Under the AHP General Fund, creating a scoring category and streamline retention document requirements for Native American affordable housing projects to make the program more accessible.
  • Creating the infrastructure to offer an AHP Targeted Fund for Nevada in 2023 to address exceptional housing needs in this state. 
  • Consolidating the Homeownership Set-Aside programs WISH and IDEA into one program in 2022 to facilitate member participation.
neighborhoods
graph of rising costs

2021 AHP: Filling Gaps to Add Supply

Across the Bank’s district, development and labor costs that have been rising in recent years were further exacerbated by the pandemic. Construction delays continue to be common, driven by pandemic-related staffing and site maintenance issues and global supply chain disruptions, along with material shortages and lengthened timelines for utility installations and permit approvals. 

Modular construction continues to promise cost savings through simultaneous sitework and building construction. Analysts also note that streamlined zoning and permitting along with more flexible sources of funding are needed to decrease construction timelines and reduce costs. Funding was awarded to several modular-design affordable housing projects in 2021.

AHP Implementation Plan Changes

To comply with the amended AHP Regulation and taking into consideration the needs and opportunities identified in the Bank’s district and with valuable input from the Advisory Council, the Bank made the following changes to the AHP General Fund competitive scoring for the 2021 application cycle: 

  • Revised the Targeting category related to owner-occupied projects to address household income targeting needs for project feasibility. 
  • Created a new 3-point scoring category to assist large families called Housing for Households Requiring Large Units.
  • Revised the Promotion of Empowerment category to provide more flexibility for social services requirements per

Across the Bank’s district, development and labor costs that have been rising in recent years were further exacerbated by the pandemic. Construction delays continue to be common, driven by pandemic-related staffing and site maintenance issues and global supply chain disruptions, along with material shortages and lengthened timelines for utility installations and permit approvals. 

Modular construction continues to promise cost savings through simultaneous sitework and building construction. Analysts also note that streamlined zoning and permitting along with more flexible sources of funding are needed to decrease construction timelines and reduce costs. Funding was awarded to several modular-design affordable housing projects in 2021.

AHP Implementation Plan Changes

To comply with the amended AHP Regulation and taking into consideration the needs and opportunities identified in the Bank’s district and with valuable input from the Advisory Council, the Bank made the following changes to the AHP General Fund competitive scoring for the 2021 application cycle: 

  • Revised the Targeting category related to owner-occupied projects to address household income targeting needs for project feasibility. 
  • Created a new 3-point scoring category to assist large families called Housing for Households Requiring Large Units.
  • Revised the Promotion of Empowerment category to provide more flexibility for social services requirements per the amended AHP Regulation and reallocated 1 point to the Community Stability category.
  • Revised the Community Stability category to add 1 point for a Sustainable Building subcategory for net-zero energy certification, eliminated the transit frequency documentation requirement, and addressed economic integration needs in the district.
  • Revised the Project Readiness category to reallocate 3 points to the Large Units category and added half point to the subcategory for obtaining a building permit to give more weight to this important project milestone. 
  • Revised the Subsidy per Unit category to address affordable housing needs related to increased construction costs and demand for homeownership in the district. 

Updated the Implementation Plan scoring priorities and categories to align with the amended AHP Regulation requirements and naming conventions.
More details about the most recent AHP Implementation Plan revisions are available at fhlbsf.com.

AHP 2021 Results

To the extent possible, AHP money needs to meet the moment: affordable housing is essential to the economic recovery and revitalization of our communities and neighborhoods. The AHP is a flexible source of gap funding for projects that are designed to serve very low -, low-, and moderate-income families and individuals, many with special needs. All the 2021 grant winners will supply some specific mix of valuable social services to support residents, ranging from financial literacy education and job coaching and placement assistance to onsite afterschool care and medical and behavioral health services.

Through the AHP, FHLBank San Francisco, its members, and their community partners are on the front lines of providing essential funding to affordable housing projects in our communities. While the demand can seem overwhelming, every project that is able to move forward with gap funding helps to provide safety, security, and stability for people in need.

In 2021, FHLBank San Francisco awarded $37.7 million in AHP grants to 46 projects that will construct or rehabilitate 2,660 units of housing affordable for lower-income families and individuals in Arizona, California, and New Mexico. Twenty FHLBank San Francisco member financial institutions, working in partnership with community-based housing developers, submitted successful

To the extent possible, AHP money needs to meet the moment: affordable housing is essential to the economic recovery and revitalization of our communities and neighborhoods. The AHP is a flexible source of gap funding for projects that are designed to serve very low -, low-, and moderate-income families and individuals, many with special needs. All the 2021 grant winners will supply some specific mix of valuable social services to support residents, ranging from financial literacy education and job coaching and placement assistance to onsite afterschool care and medical and behavioral health services.

Through the AHP, FHLBank San Francisco, its members, and their community partners are on the front lines of providing essential funding to affordable housing projects in our communities. While the demand can seem overwhelming, every project that is able to move forward with gap funding helps to provide safety, security, and stability for people in need.

In 2021, FHLBank San Francisco awarded $37.7 million in AHP grants to 46 projects that will construct or rehabilitate 2,660 units of housing affordable for lower-income families and individuals in Arizona, California, and New Mexico. Twenty FHLBank San Francisco member financial institutions, working in partnership with community-based housing developers, submitted successful applications in the 2021 funding competition, with grants ranging from $190,000 to $1.25 million. Grants were awarded to members with total assets ranging from under $500 million to those with assets over $25 billion. 

Thanks to the combined efforts of the Bank’s member financial institutions and their affordable housing partners, AHP grants awarded over the past three decades have helped increase the supply of affordable housing in the urban, suburban, and rural areas served by the Bank’s membership. The program plays a critical role in supplying resources that strengthen communities and change lives for the better.

Access to quality affordable housing in a safe and healthy neighborhood is the foundation for a brighter future. Projects supported by 2021 AHP grants will meet the diverse needs of diverse communities, families, and individuals, including:

  • Lower income working families struggling to keep housing near centers of employment.
  • Low-income seniors who want to age-in-place in the big cities or small towns where they feel at home.
  • Vulnerable unhoused women with children in need of safe transitional housing.
  • Youth in need of both shelter and supportive services to help them transition to self-sufficiency.
  • Chronically unhoused veterans and veterans with other special needs, and their families.
  • Individuals on the path to recovery from drug and alcohol addiction.
  • Low- to moderate-income families and individuals aspiring to homeownership. 

The 46 AHP grant winners in 2021 included one member that had not previously been awarded an AHP grant.

2021 Competitive Affordable Housing Program Results

  2021 2021 2021 1990-2021     
(Dollars in millions, except subsidy per unit) Rental Ownership Total  
Applications Received        
    Number of Applications 104 13 117 6,662
    Subsidy Requested $94.2 $2.1 $96.4 $3,138.2
Approved Applications        
     Number of Applications 41 5 46 2,460
     Subsidy Awarded $36.3 $1.16 $37.4 $1,094.4
     Number of Affordable Units 2,571 48 2,619 136,407
Effectiveness        
     Average Subsidy per Unit $14,122 $24,000 $14,303 $8,023.0

These results reflect adjustments, cancellations, and modifications to projects as of December 31, 2021.

 

Selected Projects

Projects awarded funding in the 2021 funding competition feature a wide variety of valuable characteristics, for example:

Maceo May Apartments (San Francisco, CA) will be the first affordable housing parcel developed as part of the multi phase Treasure Island/Yerba Buena Island Redevelopment plan. Named after an African American Vietnam War veteran who dedicated his life's work after the military to addressing the needs of unhoused veterans, the development is part of a pilot project in San Francisco that uses modular construction methods to alleviate the city's crisis of homelessness. 

South Park Scattered Sites (San Francisco, CA) is the rehabilitation of two historic hotels built in the 1910s and a historic boardinghouse and community gathering center built in 1907 in the South of Market neighborhood in San Francisco to produce 108 supportive and affordable housing units, with 83 reserved for unhoused households. 

Vista Sunrise II (Palm Springs, CA) is a new construction development designed to serve special needs households and located on the campus of the Desert AIDS Project (DAP), a Federally Qualified Health Center in Palm Springs. The DAP campus includes an onsite medical clinic, where residents will be able to obtain a variety of health services. 

Casa del Sol

Projects awarded funding in the 2021 funding competition feature a wide variety of valuable characteristics, for example:

Maceo May Apartments (San Francisco, CA) will be the first affordable housing parcel developed as part of the multi phase Treasure Island/Yerba Buena Island Redevelopment plan. Named after an African American Vietnam War veteran who dedicated his life's work after the military to addressing the needs of unhoused veterans, the development is part of a pilot project in San Francisco that uses modular construction methods to alleviate the city's crisis of homelessness. 

South Park Scattered Sites (San Francisco, CA) is the rehabilitation of two historic hotels built in the 1910s and a historic boardinghouse and community gathering center built in 1907 in the South of Market neighborhood in San Francisco to produce 108 supportive and affordable housing units, with 83 reserved for unhoused households. 

Vista Sunrise II (Palm Springs, CA) is a new construction development designed to serve special needs households and located on the campus of the Desert AIDS Project (DAP), a Federally Qualified Health Center in Palm Springs. The DAP campus includes an onsite medical clinic, where residents will be able to obtain a variety of health services. 

Casa del Sol Subdivision (Wickenburg, AZ) will create 12 new homes for low-income families in Wickenburg, Arizona, a rural community with a population of just 12,314 residents. 

The West Grand & Brush, Phase 1 (Oakland, CA) will transform a former bus storage site into 59 affordable apartments for extremely low- and low-income households, with units reserved for unhoused households and individuals with a mental or physical disability. 

Esperanza Place Phase 1 (Walnut Creek, CA) is part of the first phase of Habitat for Humanity East Bay/Silicon Valley’s Esperanza Place project, which is designed as an all-electric development with a goal of reaching Zero Net Energy. Each home will incorporate many green building features aimed at resource conservation, indoor air quality, and energy and water efficiency. 

Lorena Plaza (Los Angeles, CA) is a new mixed-use development providing 49 affordable and supportive housing units on the upper floors of one 4-story structure. The project, which will improve and revitalize the neighborhood, is being developed in partnership with the Los Angeles County Metropolitan Transportation Authority, with a 75-year ground lease and a public art component required by the MTA. 

Montecito II Senior Housing (Los Angeles, CA) creates housing for low-income and homeless seniors by redeveloping the parking lot of an existing historic building, the Montecito, located in a mixed residential and commercial neighborhood near transit and amenities. 

photo of micah and daughter playgound.
Everything is easier when you do it as a family, Sandra says.

WISH & IDEA: Sustainable Homeownership Stabilizes Communities

In addition to the many other benefits of increasing homeownership opportunities are the ways in which homeownership can be key to stabilizing underserved neighborhoods that have been impacted by COVID-19. The downpayment assistance these programs offer helps aspiring homeowners overcome the biggest barriers to achieving sustainable homeownership - saving for a downpayment and closing costs - and this, in turn, helps families build intergenerational wealth.

In 2021, the Bank earmarked $11 million to fund WISH and IDEA matching grants for low- and moderate-income individuals and families aspiring to homeownership. With this funding, 36 unique members, including 8 members participating for the first time, are helping homebuyers in Arizona, California, Nevada, and other states where Bank members do business and put down roots in their communities. 

Both the WISH and IDEA programs offer eligible low- to moderate-income households 4-to-1 matching grants of up to $22,000 that can be applied to downpayment and closing costs for the purchase of a home. WISH grants are targeted to working families and individuals who are ready to make the transition from renting to owning, and the grants can be paired with local, state, and federal mortgage loan programs, such as Fannie Mae HomeReady and Federal

In addition to the many other benefits of increasing homeownership opportunities are the ways in which homeownership can be key to stabilizing underserved neighborhoods that have been impacted by COVID-19. The downpayment assistance these programs offer helps aspiring homeowners overcome the biggest barriers to achieving sustainable homeownership - saving for a downpayment and closing costs - and this, in turn, helps families build intergenerational wealth.

In 2021, the Bank earmarked $11 million to fund WISH and IDEA matching grants for low- and moderate-income individuals and families aspiring to homeownership. With this funding, 36 unique members, including 8 members participating for the first time, are helping homebuyers in Arizona, California, Nevada, and other states where Bank members do business and put down roots in their communities. 

Both the WISH and IDEA programs offer eligible low- to moderate-income households 4-to-1 matching grants of up to $22,000 that can be applied to downpayment and closing costs for the purchase of a home. WISH grants are targeted to working families and individuals who are ready to make the transition from renting to owning, and the grants can be paired with local, state, and federal mortgage loan programs, such as Fannie Mae HomeReady and Federal Housing Administration-insured mortgages. IDEA grants help homebuyers who have been saving for the purchase of their first home through an Individual Development Account, participating in their local housing authority’s Family Self-Sufficiency Homeownership Program, or completing a lease-to-own program administered by a nonprofit or government entity.

wish disbursements

In the 21 years since the first homebuyer received a matching grant through the Bank’s homeownership programs, over $128 million in WISH and IDEA matching grants have been funded, helping nearly 9,000 families, like the Gonzalez family in Clovis, California, realize their dream of owning an affordable home of their own. 

Credit for Economic Development, Affordable Housing, Homeownership, and Community Revitalization

The Bank’s Community Investment Cash Advance (CICA) programs offer Bank members a lower-cost source of funds they can lend for building affordable housing, revitalizing neighborhoods, and fueling economic development activities that benefit low- to moderate-income communities. 

In 2021, members took advantage of these lower cost funds to respond to the ongoing pandemic, boost local economies, create new affordable housing, and facilitate homeownership for lower-income households, using:

  • $104.7 million in Advances for Community Enterprise (ACE) Program funds to support community lending and economic development activities, including small business loans and SBA Paycheck Protection Program funds. The funding is expected to create or retain 820 jobs. Four members used the program in 2021.
  • $841.3 million in Community Investment Program (CIP) advances. The 17 CIP advances will be used by six different members to fund mortgages for households earning up to 115% of the median income for the area in which they live, 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, totaling over 2,400 housing units. 

In addition, the Bank issued 17 CIP Letters of Credit on behalf of five members to credit-enhance financing for

The Bank’s Community Investment Cash Advance (CICA) programs offer Bank members a lower-cost source of funds they can lend for building affordable housing, revitalizing neighborhoods, and fueling economic development activities that benefit low- to moderate-income communities. 

In 2021, members took advantage of these lower cost funds to respond to the ongoing pandemic, boost local economies, create new affordable housing, and facilitate homeownership for lower-income households, using:

  • $104.7 million in Advances for Community Enterprise (ACE) Program funds to support community lending and economic development activities, including small business loans and SBA Paycheck Protection Program funds. The funding is expected to create or retain 820 jobs. Four members used the program in 2021.
  • $841.3 million in Community Investment Program (CIP) advances. The 17 CIP advances will be used by six different members to fund mortgages for households earning up to 115% of the median income for the area in which they live, 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, totaling over 2,400 housing units. 

In addition, the Bank issued 17 CIP Letters of Credit on behalf of five members to credit-enhance financing for the construction or acquisition of multifamily rental projects, including a mixed-use project, in California, Colorado, New York, and Washington, for a total of over 2,400 housing units. 

photo of man in his shop
Chef Maria preparing sweet pumpkin tamales.

AHEAD: Grants for Economic Development and Pandemic Relief and Recovery

The Bank’s board of directors allocated $1.5 million allocation for the 2021 AHEAD Program.

AHEAD grants provide valuable resources to help our communities solve for persistent challenges, and, since the onset of the pandemic, the need for the kind of creative initiatives and essential services that AHEAD winners provide has only grown.

$1.5 million in grants were awarded to 60 projects that will boost economic development activity and create greater opportunity in underserved and low-income communities in Arizona, California, and Nevada. 

AHEAD was purposefully designed with broad eligibility criteria, so that members can support a diverse array of innovative nonprofit initiatives that address specific local economic or community development priorities. From creating jobs to workforce training, from supporting small businesses to providing lifelines for underserved populations, the 2021 grantees exemplify the intent of the AHEAD Program by developing innovative, targeted initiatives that will create economic opportunity by expanding proven development models or piloting new interventions. 

ahead grants categories pie chart

Pandemic relief initiatives included supplying cash, clothing, food, and rental assistance to families and individuals, paying for hotels to shelter vulnerable unhoused people, purchasing PPE and paying for cleaning, supporting or replacing nonprofit fundraising for nonprofits, filling gaps in operating support, and technology upgrades. In

The Bank’s board of directors allocated $1.5 million allocation for the 2021 AHEAD Program.

AHEAD grants provide valuable resources to help our communities solve for persistent challenges, and, since the onset of the pandemic, the need for the kind of creative initiatives and essential services that AHEAD winners provide has only grown.

$1.5 million in grants were awarded to 60 projects that will boost economic development activity and create greater opportunity in underserved and low-income communities in Arizona, California, and Nevada. 

AHEAD was purposefully designed with broad eligibility criteria, so that members can support a diverse array of innovative nonprofit initiatives that address specific local economic or community development priorities. From creating jobs to workforce training, from supporting small businesses to providing lifelines for underserved populations, the 2021 grantees exemplify the intent of the AHEAD Program by developing innovative, targeted initiatives that will create economic opportunity by expanding proven development models or piloting new interventions. 

ahead grants categories pie chart

Pandemic relief initiatives included supplying cash, clothing, food, and rental assistance to families and individuals, paying for hotels to shelter vulnerable unhoused people, purchasing PPE and paying for cleaning, supporting or replacing nonprofit fundraising for nonprofits, filling gaps in operating support, and technology upgrades. In addition, many of the non-pandemic relief projects had a pandemic response component, such as social service assistance and technology upgrades.

The Bank reviewed 309 applications requesting $14 million submitted in 2021 before selecting 60 AHEAD grant winners. Forty-seven participating Bank members, including 4 that sponsored winning applications for the first time, delivered grants ranging from $10,000 to $50,000 to 60 nonprofits in Arizona, California, and Nevada. Among the recipients are:

  • North Coast Opportunities (Sponsored by member Community First Credit Union), which helps provide various support services to strengthen low-income individuals and families in north central California. The Building Homes, Building Lives in Lake County project provides construction and soft job skills training as well as a living wage, safety gear and tools to those in the rapid rehousing program, all of whom are formerly or at risk of being homeless.
  • Red Feather Development (Sponsored by member Clearinghouse CDFI), which partners with the Navajo Nation and the Hopi Tribe in Arizona to provide sustainable housing solutions in their respective tribal communities. The AHEAD grant will help fund the Native Home Resource Network - COVID Resilience and Recovery Program’s staff and associated travel for outreach across the region.
  • Linc Housing Corporation (Sponsored by member Arizona Central Credit Union), which renovates and preserves sustainable affordable homes for seniors, families, and special needs populations throughout California. The grant will help pay for kitchen equipment, including light fixtures, fire sprinklers and a hood system at the commercial kitchen spaces.
  • Opportunity Junction (Sponsored by member City National Bank), an organization that offers various job training and placement programs in Contra Costa County, California, to help residents overcome barriers to employment and career advancement. The grant will help the organization to maintain adequate staffing by supporting the salaries of the certified nursing assistant instructor and professional development instructor.
  • Nevada Partners Inc. (Sponsored by member Toyota Financial Savings Bank), which provides programs and services for education, workforce development, financial literacy, and housing to low- and moderate-income children, families, and other individuals in West Las Vegas. The grant will help provide operating support and enable the organization to hire additional staff focused on job development, as well as supporting paid work experience or job training costs for participants.
  • Housing and Economic Rights Advocates (Sponsored by member East West Bank), a legal service and advocacy organization addressing various financial wellness and housing issues that exacerbate disparities in low- and moderate-income communities in California, including student loan and medical debt, credit building, and fair access to financial resources and housing. The grant will support staff attorneys providing workshops and one-on-one counseling.

Since 2004, the Bank has awarded over $20 million in AHEAD Program grants to support over 600 nonprofit projects and programs in Arizona, California, and Nevada.

Bank members enthusiastically made the most of flexible and easy-to-access matching funds to amplify their own support of local nonprofits and small businesses.

Supporting Localized Disaster and Pandemic Relief and Recovery Efforts

Beginning in 2017, the Bank took several steps to provide immediate relief to communities affected by disasters 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.

In 2021, the Bank disbursed $126,500 in matching contributions on behalf of 12 members to 19 nonprofit organizations serving communities affected by natural disasters in the district. With Bank members contributing $151,500, disaster relief efforts received $278,000 in total contributions. 

In response to the unprecedented COVID-19 public health emergency and its devastating economic impact, beginning in May 2020, the Bank made a total of $1.5 million available to match donations members made to directly support nonprofits or small businesses struggling to survive during a difficult and uncertain time. 

Bank members enthusiastically made the most of flexible and easy-to-access matching funds to amplify their own support of local nonprofits and small businesses. As of December 31, 2021, a total of 114 FHLBank San Francisco members contributed over $3 million to nonprofits and small businesses, and the Bank contributed over $2 million to match over 200 donations. 

Many of the nonprofits that Bank

Beginning in 2017, the Bank took several steps to provide immediate relief to communities affected by disasters 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.

In 2021, the Bank disbursed $126,500 in matching contributions on behalf of 12 members to 19 nonprofit organizations serving communities affected by natural disasters in the district. With Bank members contributing $151,500, disaster relief efforts received $278,000 in total contributions. 

In response to the unprecedented COVID-19 public health emergency and its devastating economic impact, beginning in May 2020, the Bank made a total of $1.5 million available to match donations members made to directly support nonprofits or small businesses struggling to survive during a difficult and uncertain time. 

Bank members enthusiastically made the most of flexible and easy-to-access matching funds to amplify their own support of local nonprofits and small businesses. As of December 31, 2021, a total of 114 FHLBank San Francisco members contributed over $3 million to nonprofits and small businesses, and the Bank contributed over $2 million to match over 200 donations. 

Many of the nonprofits that Bank members selected for matching donations are day-to-day lifelines for people in their communities who are food- and housing-insecure in normal times, and they became even more essential as the pandemic put extreme pressure on lower-income families and individuals. 

Financial support during this time was critical to their ability to keep their doors open and continue to provide food, shelter, PPE, rental and other financial assistance, and more, to those in need during the pandemic. 
 

Educating Community Program Users

In 2021, Community Investment team members conducted all informational work sessions virtually:

  • Five webinars on the AHP competitive application process 
  • Eight AHP compliance webinars 
  • Three WISH & IDEA webinars 
  • Two AHEAD webinars on the application, disbursement, and monitoring processes 

Making Connections and Collecting and Sharing Information

Continuous outreach to diverse stakeholders is part of what helps the Bank further its mission and achieve its Targeted 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. 

Finding effective ways to address the unique needs of Tribal Nations in the 11th district is a very high priority for the Bank. In 2021, the Bank hosted a first-of-its-kind Tribal Nations Opportunities Forum focused on Native American housing, infrastructure, and economic development needs.

The virtual event brought together representatives of Tribal Nations from throughout Arizona, California, and Nevada, and created an opportunity for the Bank, its board of directors and Advisory Council, and member financial institutions to hear directly from tribal organizations about barriers to housing production, rehabilitation, infrastructure, and economic development.

Participants explored how partnerships with Bank members and access to the Bank’s grants and discounted credit programs can help overcome persistent challenges. 

U.S. Senator Catherine Cortez Masto (D-NV) addressed the gathering and panelists included representatives from:

  • Native CDFI Network
  • Native Community Capital
  • Reno-Sparks Indian Colony
  • Yurok Tribe
  • California Coalition for Rural Housing
  • Clearinghouse CDFI
  • Native American Connections

Continuous outreach to diverse stakeholders is part of what helps the Bank further its mission and achieve its Targeted 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. 

Finding effective ways to address the unique needs of Tribal Nations in the 11th district is a very high priority for the Bank. In 2021, the Bank hosted a first-of-its-kind Tribal Nations Opportunities Forum focused on Native American housing, infrastructure, and economic development needs.

The virtual event brought together representatives of Tribal Nations from throughout Arizona, California, and Nevada, and created an opportunity for the Bank, its board of directors and Advisory Council, and member financial institutions to hear directly from tribal organizations about barriers to housing production, rehabilitation, infrastructure, and economic development.

Participants explored how partnerships with Bank members and access to the Bank’s grants and discounted credit programs can help overcome persistent challenges. 

U.S. Senator Catherine Cortez Masto (D-NV) addressed the gathering and panelists included representatives from:

  • Native CDFI Network
  • Native Community Capital
  • Reno-Sparks Indian Colony
  • Yurok Tribe
  • California Coalition for Rural Housing
  • Clearinghouse CDFI
  • Native American Connections
  • White Mountain Apache Housing Authority

The Bank’s Community Investment department staff followed up this educational event by consulting with Tribal Nations on how to make certain changes to AHP scoring criteria and modifications to AHP retention agreements that could help address specific needs in Native American communities.

Throughout 2021, engagement with stakeholders and partners was conducted virtually, for the most part. Affordable housing and community development events and organizations the Bank sponsored in 2021 included:

  • Arizona Housing Coalition
  • California Association of Local Housing Finance Agencies (CAL-ALHFA)
  • California Association of Microenterprise Organizations (CAMEO)
  • California Coalition for Rural Housing (CCRH)
  • California Community Economic Development Association (CCEDA)
  • California Housing Consortium (CHC)
  • California Reinvestment Coalition (CRC)
  • Community Housing Partnership (CHP)
  • Greenlining Institute
  • Housing California
  • Local Initiatives Support Corporation (LISC) Phoenix
  • Nevada Housing Coalition
  • Nonprofit Housing Association of Northern California (NPH)
  • Opportunity Alliance Nevada
  • Southern Nevada Regional Housing Authority
  • Southern California Association of Nonprofit Housing (SCANPH)
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photo of st3eve hastings

In Closing

On behalf of the Advisory Council, I would like to thank the Bank’s board of directors, Bank management, Community Investment department team members, and the Bank’s member financial institutions and their community partners for their dedication to the challenging work of creating opportunity and changing lives for the better.

As I step down after three years as chair, I’m delighted to be passing the gavel to my vice chair Carol Ornelas of Visionary Homebuilders. Carol’s co-pilot will be David Paull, Senior Vice President of Real Estate Development, Nevada HAND, and a member of this body since 2018.

Following an extensive search process conducted last year to identify nominees for two open seats on the Advisory Council, we are delighted to welcome Nikki A. Beasley, executive director of Richmond Neighborhood Housing Services, and Erin Rank, president and CEO of Habitat for Humanity of Greater Los Angeles to the table. 

While we will miss his contributions to our work, we are delighted that David Adame, a member of the Advisory Council for six years, is bringing his expertise and perspectives to the Bank’s board of directors, following his election as an independent director by the Bank’s member financial institutions in late 2021. 

On behalf of the Advisory Council, I would like to thank the Bank’s board of directors, Bank management, Community Investment department team members, and the Bank’s member financial institutions and their community partners for their dedication to the challenging work of creating opportunity and changing lives for the better.

As I step down after three years as chair, I’m delighted to be passing the gavel to my vice chair Carol Ornelas of Visionary Homebuilders. Carol’s co-pilot will be David Paull, Senior Vice President of Real Estate Development, Nevada HAND, and a member of this body since 2018.

Following an extensive search process conducted last year to identify nominees for two open seats on the Advisory Council, we are delighted to welcome Nikki A. Beasley, executive director of Richmond Neighborhood Housing Services, and Erin Rank, president and CEO of Habitat for Humanity of Greater Los Angeles to the table. 

While we will miss his contributions to our work, we are delighted that David Adame, a member of the Advisory Council for six years, is bringing his expertise and perspectives to the Bank’s board of directors, following his election as an independent director by the Bank’s member financial institutions in late 2021. 

I am pleased to report that in 2022 the Bank is making available $32.0 million in funding for the annual AHP General Fund competition and $11.1 million for the Bank’s first-time homebuyer program (following the consolidation of the WISH and IDEA programs under the WISH Program brand). In addition, the Bank recently announced a $1 million matching grant program to help expand the capacity of HUD-approved housing counseling agencies to serve more aspiring and at-risk homeowners in communities of color. The new voluntary Empowering Black Homeownership program is another component of the Bank’s commitment to advancing racial equity in homeownership and narrowing the Black homeownership gap.

These resources will be essential as we continue to meet both long standing and emerging challenges on the road to an inclusive economic recovery from the pandemic and work to add to the supply of affordable and equitable and rental and homeownership options for our neighbors.

Respectfully submitted,

Steve Hastings
Chair
Affordable Housing Advisory Council

"Access to quality affordable housing in a safe and healthy neighborhood is the foundation for a brighter future."