Federal Home Loan Bank of San Francisco’s Post

We are proud of the fight so far for housing and grateful for the community’s support. It’s important to remember that stable and affordable housing is a foundational factor for education, income and health, playing a crucial role in shaping the overall well-being of individuals and families. In North Texas today, a minimum-wage worker working full time cannot afford to rent a two-bedroom apartment. We are regularly hearing stories from teachers in DISD who cannot live in the city they work in. The minimum salary for DISD teachers is $61k – They would have approximately $1500 to spend on housing costs – rent, mortgage, electricity, utilities. The average rent in Dallas today is $1,789 for a two bedroom apartment. We cannot continue to perpetuate the underinvestment in housing. Bond dollars allow for preservation of affordable housing and development of infrastructure for new housing. CHI truly believes we all agree that everyone should have access to safe, decent housing – prioritizing bond dollars for housing and homelessness will help us build the city we want to have.

A recent article by the American Consumer Institute highlights the FHLBanks’ evolution over the past 90+ years, including changes to the System that Congress has implemented via statute to ensure the FHLBanks continue to provide liquidity to support housing finance and affordable housing and community development.   The article also notes that the FHLBanks in 2023 voluntarily agreed to increase contributions for affordable housing and community development programs from 10 percent to 15 percent of net earnings, which will result in $1 billion being made available for mandatory and voluntary housing programs in 2024.   While no single institution, including the FHLBanks, can solve the affordable housing challenges facing the U.S. alone, the FHLBanks are doing their part to increase affordable homeownership and rental housing opportunities across the country. https://lnkd.in/eY4Ymjkj #FHLBanks #AffordableHousingProgram #Liquidity

This Juneteenth marks my first as Director of New York’s Targeted Home Improvement Program, which was designed specifically to help right past wrongs of racial housing discrimination in the state. In the 1930s, the practice of “redlining” became common practice in denying loans and investments in communities of color. While the 1960s saw the prohibition of this practice, its legacy endures. Today, white households in New York are more than twice as likely to own their home as compared to Black households. Black New Yorkers are also more likely to be denied access to mortgage credit and refinancing than similar white households. These kinds of disparities are also present across neighborhoods with Black and Latino neighborhoods having fewer housing loan applications, higher rates of denial, and costlier loans. As I reflect this year, I feel honored to be a part of this important initiative, which provides grants in distressed and formally redlined neighborhoods where there are concentrations of Black and other minority homeowners, to help these homeowners make critical home repairs to live safely in their homes for years to come. https://hcr.ny.gov/T-HIP

HUD Floats Perm Distress Note Sales Program HUD, the Department of Housing and Urban Development, that administers programs that provide housing and community development assistance, has proposed recently a permanent program for sale of seriously delinquent mortgages. I was actually very surprised by this announcement and welcomed it. The HUD note sales stopped prior to 2020 due to COVID and the only sales HUD held were HECM Vacant property sales. The proposed rule requires all note purchasers to adhere to mission-oriented post-sale requirements, including the establishment of exclusive first-look opportunities for prospective homeowners.  The focus on giving priority to nonprofits and governmental entities for exclusive first-look opportunities is significant, as it suggests a push towards stabilizing homeownership and providing support to those who may be struggling. The announcement implies the HUD is prepping for SFR delinquent sales in the future, and in turn, HUD sales will inject long needed SFR inventory in the capital markets and therefore revival of the real estate distressed market to benefit the homeowners. Feel free to reach out if you have specific questions about the implications of these changes, or if you are looking for insights on how this could affect homeowners and the broader market. #realestate #HUD #USA #economy #2024

Today in Los Angeles, Congressman Jimmy Gomez (CA-34) – an advocate for housing reform and affordable rental and transitional supportive housing – joined us for a roundtable discussion that brought together leaders in affordable housing and other stakeholders from across the state. We appreciate the opportunity to work together with Congressman Gomez, our members, and community stakeholders to create solutions to address the growing housing affordability crisis. Housing affordability is a pressing issue felt in far too many communities across the U.S. We remain focused on helping to solve the affordable housing crisis by working with our members to deliver solutions to support residents facing unprecedented housing challenges. Since 1990, Federal Home Loan Bank of San Francisco has awarded $1.3 billion in Affordable Housing Program grants to construct, preserve, or purchase over 150,000 units of quality rental and owner-occupied affordable housing. Read more about our roundtable discussion here: https://lnkd.in/g32fsm9M #affordablehousing #housingaffordability #LosAngeles

Great report on housing and what is happening locally. There is little doubt that with 1) folks living longer, 2) less traditional families and more one parent households…creating a need for two roof tops vs one, 3) a large influx of people into this country seeking asylum (economic opportunity) and 4) Air BnB eating up 1% of housing stock and growing…that housing availability is a challenge. As demand grows and supply stays flat….prices will continue to push up for the foreseeable future.

For Angela and Luis, owning a house felt like a dream after immigrating from Colombia to Elgin, Illinois. Facing increasing rental costs, the couple sought housing counseling from CCCS of Northern Illinois—a beneficiary organization of our Housing Counseling Resource Program. Additionally, they received a $10,000 Downpayment Plus® program grant through our dedicated member, Midland States Bank, who has cultivated a strong partnership with CCCS, providing a seamless support network for homebuyers in their community. Angela and Luis secured their dream home in September 2023. Their success story is just one of thousands positively impacted by our housing counseling and downpayment assistance funding. Read the full story in our 2023 Impact Report: fhlbc.com/impact #FHLBCImpact #InvestingInOpportunities #NationalHomeownershipMonth

The housing crisis real. With prices continuing to increase at the same time their is less inventory on the market, 1st time buyers are facing an uphill battle to be in the game. Solutions need to come from public/private collaborations. Employers, like the ones listed from Sheboygan County, need to be engaged. Likewise, the public sector needs to find creative ways to incentivize development and bring deals to their community. Well done Sheboygan County.

The FHLBanks welcome the recent FHFA report recognizing their contributions to affordable housing and community development. The report states that in 2023, the 11 FHLBanks provided over $581 million in grants, exceeding statutory requirements to support lower-income communities. Ryan Donovan, president and CEO of the Council, notes: “Over the last two years the FHLBanks have taken tremendous steps to help address the housing supply and affordability issues plaguing the country. The report issued by FHFA today clearly shows the positive impact and responsiveness of the 11 FHLBanks to the needs of their members and the communities they serve.” Read more: https://lnkd.in/dqg2UP5D #AffordableHousing #FHLBanks #FHLB

Efficient, inexpensive, and in-demand. Two of those words are often missing when referring to homeownership options in the United States. Manufactured homes are making a comeback and challenging that convention. With much of the country’s for-purchase housing out of affordable reach for a growing number of households, these inexpensive homes offer a uniquely affordable onramp to homeownership. Available in a wide range of sizes and designs, manufactured housing units are smaller by an average of about 1,000 square feet than single-family homes. They’re also more affordable. Excluding any land costs, the average manufactured home purchase price is half that per square foot of a new site-built home. Read the latest Fed Communities article for more on these efficient, inexpensive, and in-demand units and how they’re building and empowering residents featuring work from Federal Reserve Bank of Philadelphia, New Hampshire Community Loan Fund, and Harvard Joint Center for Housing Studies. https://bit.ly/3MxUhPB