NHC member California Housing Finance Agency (CalHFA) recently announced that it has been approved for $100 million in financing availability from the Federal Home Loan Bank of San Francisco (FHLB San Francisco), an NHC Leadership Circle member. CalHFA will use its access to Bank credit to fund a portfolio of Fannie Mae and Ginnie Mae mortgage-backed securities composed of loans it has originated for low to moderate income homebuyers.
The new financing grants CalHFA access to a variety of low-cost funding solutions that can be used to achieve its affordable housing initiatives and assist families and individuals of all income levels obtain quality housing and become homeowners. They will also assist in expanding homeownership opportunities for low- and moderate-income families throughout California.
“We look forward to being the first housing associate to borrow from the Federal Home Loan Bank of San Francisco,” said Tia Boatman Patterson, executive director of CalHFA. “Access to the Bank’s competitively priced funding will provide us with flexibility in how we raise capital for lending and will expand our lending capacity. It will help us manage our liquidity and lower our costs of capital, which will ultimately help more Californians have a place to call home.”
Among low- and moderate-income residents in California, 30 percent of households spend at least half of their income on housing costs, compared to a national rate of just 15 percent, according to NHC’s “Housing Landscape 2016.” These efforts from FHLB San Francisco and CalHFA to funding more affordable housing in the state will enable more Californians to have safe, decent and affordable homes.
The financing deal was finalized in June.