While affordable housing is in high demand, communities are hard-pressed to create enough units to meet a clear need. Despite the recent reduction of interest rates, this issue remains a top concern for communities throughout the West, with market availability, rising housing costs, and persistent lack of multifamily properties in development continuing to drive local and national dialogue. There are solutions, particularly when it comes to financial aid for multifamily housing coalitions and developers. It begins with local financial institutions and opportunities to leverage grants, loans, letters of credit, and other resources from the Federal Home Loan Bank of San Francisco (FHLBank San Francisco).

FHLBank San Francisco is a privately capitalized, member-owned wholesale bank that is part of the FHLBank System, a network of 11 regionally based lenders to financial institutions. In its three-state region of Arizona, California, and Nevada, the cooperative FHLBank San Francisco serves banks, credit unions, insurance companies, and Community Development Financial Institutions (CDFIs) by providing products and services to members that help expand access to quality affordable housing.

FHLBank San Francisco offers two programs that can assist with increasing the supply of affordable housing.

Discounted Credit Programs Drive Multifamily Development

FHLBank San Francisco’s support of affordable housing projects includes its Community Investment Program (CIP). This program offers discounted advances and letters of credit to members of the cooperative that can be used to develop multifamily affordable housing projects targeted to low- to moderate-income households and/or located in low- and moderate-income census tracts.

Its member financial institutions use FHLBank San Francisco’s community program grants and discounted credit products to help: Create or preserve affordable housing for lower-income families and individuals; Facilitate sustainable homeownership for low- to moderate-income families and individuals; Support innovative targeted jobs programs and entrepreneurship; Seed or sustain small businesses; and Advance community-based economic development objectives.

Across Arizona, California, Nevada, and other regions where FHLBank San Francisco members do business, the CIP makes a tangible difference. In 2023, members accessed $1.1 billion in discounted advances and letters of credit. These funds will be used to create nearly 2,300 owner-occupied and 5,100 rental housing units.

Affordable Housing Programs Build Pipeline of Multifamily Projects

In addition to CIP, FHLBank San Francisco partners with its members to award Affordable Housing Program (AHP) grants to build new or preserve affordable housing.

The AHP consists of the General Fund, open to projects focused on affordable housing units throughout the country, but prioritizing FHLBank San Francsico’s three-state district, and the Nevada Targeted Fund, which specifically funds low- and very low-income housing projects in Nevada.

FHLBank San Francisco’s AHP grants are awarded annually, through a competitive application process, to members working in partnership with housing developers and community organizations to fund rental and owner-occupied projects. To receive a grant, rental housing developments must reserve at least 20% of units for households at or below 50% of the Department of Housing and Urban Development’s area median income (AMI). Owner-occupied housing must serve households at or below 80% of the AMI.

According to the National Low Income Housing Coalition, Nevada tops the national list as the state with the highest percentage (21%) of extremely low-income households, earning 30% or less of the AMI, who are severely cost burdened—meaning the household spends more than 50% of its income on housing costs.

To tackle the persistent issue of housing affordability, FHLBank San Francisco launched the Nevada Targeted Fund, a first-of-its-kind in the FHLBank System, that supports affordable housing projects in the state, in 2023. The AHP Nevada Targeted Fund represents a significant commitment to addressing Nevada’s housing crisis. In 2023, FHLBank San Francisco awarded $4.8 million to six projects to build or rehabilitate 281 units of affordable housing throughout the state. In 2024, developers were awarded $9.4 million in AHP grants to create or preserve over 600 units of affordable housing in Nevada.

Multi-Million Dollar Commitments

By Congressional statute, FHLBank San Francisco contributes 10% of its annual net income to its AHP, which includes a down-payment assistance program. In 2023, its board of directors voted to voluntarily allocate up to an additional 5% of FHLBank San Francisco’s annual net income to fund housing and economic development programs that address the unique needs of Arizona, California, and Nevada, making the Bank an essential partner in providing valuable resources for affordable housing and multifamily developments. Learn more or become a member at fhlbsf.com.