Empowering Underserved Communities: FHLBank San Francisco's Transformative Lending Initiatives

In a groundbreaking move, the Federal Home Loan Bank of San Francisco (FHLBank San Francisco) has unveiled a series of enhancements to its credit and collateral risk policy, aimed at expanding access to capital and liquidity for underserved communities. This strategic initiative aligns with the Bank's mission to support affordable housing and economic development, paving the way for increased funding and resources to benefit those in need.

Unlocking Opportunities for Community Development Financial Institutions and Housing Finance Agencies

Strengthening Partnerships with Non-Depository CDFIs

FHLBank San Francisco has recognized the vital role that non-depository Community Development Financial Institutions (CDFIs) play in serving low-income communities. By extending credit terms from 5 years to up to 20 years on collateral, including Low Income Housing Tax Credit (LIHTC) properties, the Bank is empowering these CDFIs to provide long-term financing for large affordable housing projects. This enhanced borrowing capacity will enable CDFIs to unlock new opportunities and better support the communities they serve.Furthermore, the Bank has increased borrowing availability on posted collateral, allowing CDFIs to access more funds for affordable housing and community development initiatives. This expanded access to liquidity will be a game-changer, enabling CDFIs to scale their impact and reach more individuals and families in need.

Expanding Support for State Housing Finance Agencies

In addition to its focus on CDFIs, FHLBank San Francisco has also recognized the crucial role of state-chartered Housing Finance Agencies (HFAs) in driving affordable housing and community development. To this end, the Bank has increased its housing associate program limits from $250 to $500 million, further strengthening its ability to support state housing finance agency programs.This strategic move will provide HFAs with greater access to financing, enabling them to expand their reach and deliver more affordable housing solutions to the communities they serve. By partnering with HFAs, FHLBank San Francisco is demonstrating its commitment to addressing the pressing need for quality, affordable housing across the region.

Fostering Collaboration and Innovation

FHLBank San Francisco's enhancements are not just about improving lending terms and increasing access to capital. The Bank is also actively engaging with its CDFI members and housing associates to explore new ways of collaborating and innovating.At the upcoming Opportunity Finance Network Conference in Los Angeles, the largest annual gathering of CDFIs, FHLBank San Francisco will be discussing the impact of these enhancements and exploring opportunities for further partnership and innovation. By fostering open dialogue and collaboration, the Bank aims to uncover untapped potential and develop new programs that will truly benefit the communities they serve.

Empowering Underserved Communities through Comprehensive Support

FHLBank San Francisco's commitment to supporting underserved communities extends beyond its lending enhancements. The Bank also offers a range of discounted credit products, grant programs, and other initiatives that empower its CDFI members and housing associates to drive positive change.Through the Advances for Community Enterprise (ACE) and Community Investment Program (CIP) credit products, the Affordable Housing Program (AHP), and the Access to Housing and Economic Assistance for Development (AHEAD) Program, FHLBank San Francisco provides a comprehensive suite of tools and resources to its partners. These offerings enable CDFIs and HFAs to access low-cost capital, secure funding for affordable housing projects, and implement economic development initiatives in the communities they serve.Over the past decade, FHLBank San Francisco has demonstrated its unwavering dedication to this mission, having funded $686 million in competitively priced advances for its non-depository CDFI members, awarded $79.9 million in AHP grants to construct or preserve 6,885 affordable housing units, and provided $1.6 million in AHEAD grants for 45 economic development and recovery initiatives.

Transforming Lives and Building Resilient Communities

The impact of FHLBank San Francisco's initiatives extends far beyond the numbers. Through its partnerships with CDFIs and HFAs, the Bank has supported programs that empower Latina entrepreneurs, provide vital housing and services to Native American communities, and facilitate career development for people of color. These targeted efforts demonstrate the Bank's commitment to addressing the unique needs of underserved populations and driving meaningful, lasting change.As FHLBank San Francisco continues to expand its reach and deepen its relationships with its non-depository CDFI members and housing associates, the potential for transformative impact only grows. By unlocking access to capital, fostering innovation, and empowering local leaders, the Bank is paving the way for more vibrant, equitable, and resilient communities across the region.