SAN FRANCISCO--(BUSINESS WIRE)--The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) today announced that Clearinghouse Community Development Financial Institution (Clearinghouse CDFI), the newest member of the Federal Home Loan Bank of San Francisco, is the first non-depository community development financial institution (CDFI) to borrow from a Federal Home Loan Bank.
“Membership in the Federal Home Loan Bank of San Francisco gives us access to very competitively priced funding to help us manage our liquidity,” said Douglas Bystry, President and Chief Executive Officer, Clearinghouse CDFI. “Funding from the Bank allows us to make high-impact loans throughout California to creditworthy borrowers who may lack access to credit, including nonprofits engaged in affordable housing and economic development, charter schools serving low-income communities, job placement and training centers that instruct at-risk populations, and working families seeking affordable housing in revitalized neighborhoods,” he added.
In 2010, the Federal Housing Finance Agency (FHFA) implemented provisions of the Housing and Economic Recovery Act of 2008 (HERA) that permitted qualifying CDFIs to become members of an FHLBank. Newly eligible institutions include privately insured, state-chartered credit unions, community development loan funds, and venture capital funds that are certified by the Community Development Financial Institutions Fund of the U.S. Department of the Treasury. CDFIs are private, nonprofit and for-profit financial institutions that provide financial services to encourage economic development and community revitalization in underserved markets.
“Clearinghouse CDFI will be able to use Bank products and services to achieve its community finance mission,” said Dean Schultz, President and Chief Executive Officer, FHLBank San Francisco. “We look forward to working with them on goals we both support, one of which is making sure that communities hard hit by the recession have access to credit that can support their recovery. Clearinghouse CDFI’s track record of funding innovative and successful community finance efforts will help us extend affordable housing and economic development financing deep into underserved areas,” he added.
FHLBank San Francisco and Clearinghouse CDFI worked closely over several months to complete the membership application process and to execute the first borrowing. “Our collaboration helped define a roadmap for other CDFIs that may be eligible for membership and are interested in borrowing from the Bank,” said Tom Wilson, Managing Director, FHLBank San Francisco.
Membership in the FHLBank San Francisco offers Clearinghouse CDFI access to a variety of low-cost funding solutions, enabling it to expand its capacity to promote economic growth and stability in low-income communities. As a member, Clearinghouse CDFI will also be able to participate in the affordable housing and economic development grant programs of the FHLBank San Francisco, which awarded over $70 million in grants in 2010.
About Clearinghouse CDFI
Clearinghouse Community Development Financial Institution is a direct lender for projects that are located in or benefit low-income communities. They provide innovative and affordable financing that is unavailable in the conventional market. Established in 1996, Clearinghouse CDFI is one of the largest CDFIs in California, and the institution has been profitable for the past 11 consecutive years. Historically, Clearinghouse CDFI has funded over $729 million in affordable housing and community development loans. Their lending provides benefit to over 200,000 individuals annually, and it has created and/or retained over 4,500 jobs. More information is available at www.clearinghousecdfi.com.
About the Federal Home Loan Bank of San Francisco
The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgage loans to people of all income levels and provide credit that supports neighborhoods and communities. The Bank also funds community investment programs that help members create affordable housing and promote community economic development. The Bank’s members—its shareholders and customers—are headquartered in Arizona, California, and Nevada. Members may include federally insured depositories—commercial banks, credit unions, industrial loan companies, and savings institutions—as well as insurance companies and community development financial institutions, including privately insured, state-chartered credit unions and community development loan funds and venture capital funds that are certified by the Community Development Financial Institutions Fund of the U.S. Department of the Treasury.