THE BUZZ >>POP QUIZQ
& A with Theresa Parker, executive director of the California Housing Finance
Agency (CalHFA)AFFORDABLE HOUSING FINANCE • June 2008 THERESA
PARKER has been executive director of the California Housing Finance Agency (CalHFA)
since 1997. Her 33-year career in public service began when she worked
as a student assistant in the Department of Benefit Payments. Before stepping
into the top post at CalHFA, Parker served as chief deputy for policy at the California
Department of Finance and undersecretary for the California Health and Welfare
Agency. She was recently recognized with the 2008 National Public Service Award
from the American Society for Public Administration and the National Academy of
Public Administration. Q: How did you get started in the affordable
housing business? A: My first exposure to affordable
housing issues was as the governor’s representative on the California Tax
Credit Allocation Committee and the Debt Limit Allocation Committee. In addition,
I served as the director of finance’s representative on the CalHFA board
of directors. Those experiences gave me a real sense of the stiff competition
and significant challenge to provide affordable housing in California.
Q: What’s new at CalHFA this year? A:
A big challenge right now is trying to deal with the volatility and complexity
of the markets. While we have been doing multifamily financing for many years,
last year we hired a new director for that division, Bob Deaner. He is moving
forward at mach speed to position CalHFA to add value to increase the availability
of affordable housing in California. We also recently applied and received contingent
approval for, in conjunction with nonprofit community groups, an $8 million grant
to dramatically expand foreclosure prevention counseling throughout California.
We are also looking at ways we can play a role in helping first-time homebuyers
who are facing foreclosure. Q: How is the agency changing?
A: Given how volatile the market is, we have to look at the relevancy
of our products on a weekly basis to see if they can add value to rental or homeownership
housing. With a new director of multifamily housing, we can be more aggressive
than we have been able to be in recent years. The agency also is stepping up its
partnerships with other state agencies and counties to expand supportivehousing
opportunities, including housing for people who are mentally ill and homeless.
Q: What’s the biggest challenge for the agency in 2008, and how do
you plan to overcome that challenge? A: The biggest
challenge is to find capital and liquidity given the disruption in the credit
markets and on Wall Street. We’re having numerous discussions with existing
partners and looking to create new partnerships so that we can have capital at
interest rates where affordable housing can be developed. In addition, we need
to continue to educate investors that affordable housing is a safe investment
and furthers a tremendous effort for public-private partnerships. Q:
What’s a recent move that CalHFA made that other housing agencies can learn
from? A: Eighteen months ago, CalHFA helped negotiate
an affinity agreement with Fannie Mae that enabled HFAs [to have] a preferred
relationship for underwriting terms and rates. This agreement enabled us to provide
homebuyers some of the best rates in the mortgage industry, and I think it’s
safe to say that many people wouldn’t have been able to purchase homes without
it. To date, 26 states have tapped into the financing, and we are working now
on pricing and terms for the second nine- to 18-month period. Q:
What impact has the mortgage crisis had on the agency? A:
While the agency doesn’t do subprime loans, the crisis has impacted our ability
to raise liquidity and capital. It has forced us to make adjustments on single-family
mortgages to reduce loan-to-values to 95 percent and combined loan-to-values to
102 percent. At the moment, the priority for additional liquidity is multifamily
loans and restructuring of our existing multifamily debt. We have also joined
with the governor and other state agencies to play an active role in preventing
foreclosures in California. Q: What’s on your iPod?
A: An eclectic mix of music—everything from classic to folk,
such as Joan Baez, to Irish folk singers. Q: Who’s your hero
and why? A: My biggest hero and role model was
my dad. He was a country doctor who always put his patients first. I grew up with
the notion of providing service to your community and people in need. Q:
If you unexpectedly had the day off work, where would we find you?
A: In Portland, Ore., with my grandkids. Q: What’s
next for Theresa Parker? A: Besides working on
my golf game, trying to develop a vision for the next housing affordability product
to further affordable housing in California. In California, we are never going
to be able to create enough affordable housing given our population growth, so
it is an ongoing, never-ending challenge. | 
