Major commitment from First Republic will help nonprofit
lender preserve and produce more than 2000 affordable homes in San
Francisco over the next 5 years.
The San Francisco Housing Accelerator Fund (SFHAF) announced
today a $100 million commitment from First Republic Bank (NYSE:FRC)
in the form of a revolving credit facility to support the
preservation of affordable housing in San Francisco through SFHAF’s
anti-displacement lending program.
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A public-private partnership, SFHAF provides flexible loans to
nonprofit community partners so they can compete with market-rate
development corporations to purchase buildings for low-income
residents vulnerable to displacement. With financial assistance
from SFHAF, the nonprofits buy the buildings, complete extensive
repair work, and operate them as permanently affordable
housing.
First Republic’s investment brings SFHAF’s total lending pool to
$210 million. Of that amount, SFHAF has already committed more than
$130 million to its nonprofit development partners, including
Mission Economic Development Agency (MEDA), Chinatown Community
Development Center (CCDC) Tenderloin Neighborhood Development
Corporation (TNDC), San Francisco Housing Development Corporation
(SFHDC), and BRIDGE Housing.
“To address the continued rising costs of housing in San
Francisco, we need more tools to both build more housing and
preserve affordable housing we have,” said San Francisco Mayor
London N. Breed. “The Housing Accelerator Fund is a great partner
in helping us to secure more buildings through initiatives
including our Small Sites Program, which keeps our residents stable
in our neighborhoods. It's critical that the private sector step up
to help organizations like the Housing Accelerator Fund deliver on
its important mission.”
Since its launch in 2017, SFHAF has funded 18 loans throughout
the City, and its lending program has financed the preservation and
production of more than 440 units of affordable housing. By
leveraging First Republic’s $100 million commitment, SFHAF expects
to multiply that number fivefold. “First Republic Bank is taking a
leadership role in addressing the affordable housing crisis in San
Francisco,” said Rebecca Foster, CEO of SFHAF. “The $100 million
commitment is one of the largest SFHAF has ever received, and it
demonstrates the bank’s focus on an issue of vital importance to
the entire community. We encourage others to join us in ensuring
San Francisco's future is affordable for all.”
Foster estimates that with the $100 million of low-cost debt her
organization will preserve an additional 2000+ units of affordable
housing over the next 5 years, creating permanently affordable
homes for more than 3,000 residents in San Francisco.
“First Republic is pleased to be working with SFHAF, which has
an excellent track record of financing affordable housing in San
Francisco,” said Jim Herbert, Founder, Chairman and CEO of First
Republic Bank. “Working with SFHAF is part of our larger commitment
to support regional solutions to the affordable housing crisis and
is consistent with our core value of strengthening our
communities.”
Since 2011, First Republic has originated $6 billion in low- to
moderate-income community development loans and has helped develop
100,000 affordable rental units through low-income housing tax
credit investments. The bank has also made 6,000 home mortgages
through its Eagle Community program, which offers special interest
rates and dedicated bankers to borrowers in underserved minority
areas. In February, First Republic made a $5 million commitment to
the Partnership for the Bay’s Future to fund regional affordable
solutions.
SFHAF has already closed one loan to MEDA using First Republic’s
investment, transitioning six apartments in San Francisco’s Mission
district to permanent affordability and protecting more than 15
low-income residents from displacement.
“We know what we’re doing works to keep our city’s communities
vibrant and diverse, and our most vulnerable residents in stable
homes, protected from displacement and homelessness. Powerful,
impact-driven investments like First Republic’s enable us to scale,
so that we can finance several thousand units of high-quality,
permanently affordable housing every year,” Foster said.
About The San Francisco Housing
Accelerator Fund
The San Francisco Housing Accelerator Fund is committed to the
preservation and expansion of quality affordable housing for
economically disadvantaged individuals and households. An
innovative nonprofit public-private partnership, SFHAF works with
the city of San Francisco, local foundations, private lending
institutions, and corporations to provide powerful new financing
tools to ensure that San Francisco remains vibrant, equitable, and
inclusive for all. Visit us at www.sfhaf.org.
About First Republic
Bank
Founded in 1985, First Republic and its subsidiaries offer
private banking, private business banking and private wealth
management, including investment, trust and brokerage services.
First Republic specializes in delivering exceptional,
relationship-based service and offers a complete line of products,
including residential, commercial and personal loans, deposit
services, and wealth management. Services are offered through
preferred banking or wealth management offices primarily in San
Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach and
San Diego, California; Portland, Oregon; Boston, Massachusetts;
Palm Beach, Florida; Greenwich, Connecticut; New York, New York;
and Jackson, Wyoming. First Republic is a constituent of the
S&P 500 Index and KBW Nasdaq Bank Index. For more information,
visit firstrepublic.com.
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The San Francisco Housing Accelerator Fund
Investors: Becca Hutman bhutman@sfhaf.org
415-663-6938
Media: Juliana Bunim juliana@lh-pa.com (415) 364-000
First Republic Bank
Investors: Andrew Greenebaum / Lasse Glassen Addo
Investor Relations agreenebaum@addoir.com lglassen@addoir.com (310)
829-5400
Media: Greg Berardi Blue Marlin Partners
greg@bluemarlinpartners.com (415) 239-7826
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