The Federal Home Loan Bank of San Francisco has invested nearly $53 million in a Fannie Mae bond issuance to support housing for very low-income residents near Fisherman's Wharf.
The $52.6 million financing will cover 230 units in the Wharf Plaza I and II buildings, which are located at 1855 Kearny St., and have 116 and 114 units respectively.
This deal follows a March $10 million investment in Nevada Housing Division Mortgage Revenue Bonds.
"With the authority FHLBanks have to make prudent investments in mission-consistent securities, we are proud to be able to support the affordability of these local and much-needed housing units," said
"This investment aligns with our mission to be a reliable supplier of low-cost liquidity to our member financial institutions and deliver resources that supports affordable housing and community investment in our region," he added.
A deficit of nearly 170,000 affordable rental homes for households earning 50% or below the area median income exists in the San Francisco metro area, according to National Low Income Housing Coalition data cited by the bank.
"Consistent with our obligation to our mission, we will continue to seek opportunities to invest in the creation, development, and purchase of affordable housing in the communities our members serve," Amato said.
What is the FHLBanks role in affordable housing
Earlier this week, the Council of Federal Home Loan Banks released its
The report said the 11 banks in the system made a total of $752 million in AHP funding. This supported the creation or preservation of over 26,000 housing units, 83% of which were multifamily developments.
"We are proud to be a dependable partner for America's housing finance system and a critical component of our nation's economic vitality," said Ryan Donovan, president and CEO of the Council of Federal Home Loan Banks, in a press release. "When local financial institutions thrive, so do the communities they serve, and we provide the stability and strategic support our members depend on to stimulate economic opportunity."
How expensive is the San Francisco housing market?
San Francisco is a particularly impacted market
The median rent for a one-bedroom apartment in San Francisco is $3,330, No. 2 behind New York's $4,570.
"Preserving existing affordable housing has to be a critical component of any strategy to address the Bay Area's current housing crisis," said Ben Metcalf, managing director at UC Berkeley's Terner Center for Housing Innovation, in the FHLBank San Francisco press release.
"However, the scale of the problem is such that we simply can't get there unless institutional capital providers step up to the plate in a big way," he added.
