ARCH The Association of Reinvestment Consortia for Housing Financing Affordable

ARCH The Association of Reinvestment Consortia for Housing Financing Affordable Housing – Building Communities The Story of ARCH ARCH This publication is produced by the Community Development Department of the Federal Reserve Bank of San Francisco. We work to give financial institutions, community-based organizations and government entities the tools they need to effectively address community development issues affecting low- and moderate-income individuals and communities. September 2006 The Community Development Department of the Federal Reserve Bank of San Francisco has enjoyed a long and fruitful collaboration with the statewide multibank affordable housing lending consortia that constitute the group known as “ARCH,” or the “Association of Reinvestment Consortia for Housing.” Responding to the need for permanent financing to fund the new Low Income Housing Tax Credit projects, we originally convened bankers and assisted in the formation of a number of these consortia as a means to pool bank resources and minimize the risk of financing these deals. Ultimately, we organized the ARCH group and regularly convene the consortia to share best practices, tackle common issues and otherwise support their work. More than a decade later, we are now stepping back to take stock of these organizations and their work. As the enclosed report details, the ARCH members have supplied more than $2 billion in financing to build or rehabilitate almost 100,000 units of affordable rental housing. Moreover, with extremely low loss rates, the consortia have proven the viability of this lending while managing to reach the smaller and more difficult transactions that are still beyond the reach of mainstream financial institutions. And as new needs in community development finance have emerged in recent years, many of these consortia have evolved to fill them, moving into areas such as consulting, tax credit syndication and even the financing of affordable for-sale housing. We hope you enjoy this report. We look forward to working with the ARCH members in the coming years as they continue to build on their impressive lending record and respond to new challenges. all the best, Community Development Department Federal Reserve Bank of San Francisco 101 Market Street, MS 640 San Francisco, CA 94105 www.frbsf.org/community (415) 974-2765/ fax: (415) 393-1920 Group Vice President, Public Information and Community Development joy.k.hoffmann@sf.frb.org Joy Hoffmann Director, Community Development jack.richards@sf.frb.org Jack Richards District Manager scott.turner@sf.frb.org Scott Turner Senior Research Associate carolina.reid@sf.frb.org Carolina Reid Research Associate naomi.cytron@sf.frb.org Naomi Cytron Communicating Arts steve.baxter@sf.frb.org Graphic Design Steve Baxter Scott Turner The Association of Reinvestment Consortia for Housing: Providing Private Sector Investments that Facilitate Community Development W hen the first housing consortia were created approximately 20 years ago, the Low Income Housing Tax Credit (LIHTC) program was still in its infancy, and LIHTC projects were seen as risky investments at best. Few banks were willing to fund projects subsidized through the LIHTC, and many did not have in-house affordable housing finance expertise. As a result, one of the biggest challenges facing developers was securing permanent financing for their affordable housing projects. The early loan consortia were established as a way to bridge this financing gap. By pooling funds and bringing technical expertise on tax credits and affordable housing finance into every deal, consortia provided a low-risk way for financial institutions to participate in community development lending. In the early 1990s, the nonprofit Development Fund of San Francisco and the Federal Reserve Bank of San Francisco helped to establish a number of consortia to meet the growing demand for affordable housing. The Federal Reserve Bank also created the Association of Reinvestment Consortia for Housing (ARCH) to serve as an informal umbrella organization for the consortia. ARCH provides consortia members with a forum in which to discuss the challenges posed by a changing marketplace and to share best practices and product innovations. ARCH includes 12 consortia from across the country, and has recently added the Massachusetts Housing Investment Corporation as its 13th and newest member. The Impact of ARCH Since 1990, ARCH members have originated more than 2,500 loans, and provided a total of more than $2 billion in financing. These loans have financed the creation and rehabilitation of over 95,000 units of affordable housing. Virtually all of the units are affordable to low- and moderate-income renters, with three-fourths of the total units affordable to renters earning below 50 percent of area median income (AMI). Washington Oregon Idaho Massachusetts Utah California Illinois North Carolina Georgia Alabama Florida Hawaii Map 1: Association of Reinvestment Consortia for Housing Members ARCH members are focused largely on building affordable housing in their home states, although some ARCH members are expanding into nearby states that do not have local consortia. 1 Today, at least 450 separate financial institutions are members in one or more of the consortia. For these investors, the financial benefits of participating in the consortia are substantial. Despite initial concerns about the “risky” nature of community development loans, over the last fifteen years, loan losses totaled only 0.3 percent of the total loans originated. Even less has been passed on to investors—only 0.1 percent of the total loans originated. The low loss rate of the consortia is directly tied to the intensive asset management required by these loans, and the expertise gained from years of underwriting and asset management experience is invaluable to mitigating risk. In addition, the pooling of resources has enabled an overall reduced cost of lending. The charge-off rate for the multifamily loans made by the ARCH members averaged only 0.45 percent from 1991 to 2005. Financial institutions benefit in other ways as well. ARCH members bring local market expertise to every deal, and are often able to make loans that would not otherwise be attractive to banks. For example, consortia often underwrite small loan amounts. This allows banks to focus on the more profitable large transactions, knowing that the need for smaller loans in their assessment areas is being met. ARCH consortia are also emerging as key affordable housing lenders in rural and remote areas, markets that the large financial institutions can’t easily serve. Working in collaboration with local nonprofits, the consortia are able to reach harder-toserve populations—such as farmworkers or the disabled—and ensure that the proposed developments are of high quality and meet the needs of the localAffordability Housing Unit community. In April 2006, the Massachusetts Housing Investment Corporation (MHIC) joined the ARCH group. Like the other ARCH members, MHIC specializes in financing affordable housing and community development projects. Between 1990 and 2005, MHIC provided $944 million in financing to 268 projects, assisting in the production of more than 11,350 housing units. In recent years, MHIC has developed expertise in New Markets Tax Credits, financing eleven projects for a total of $87.9 million in investments. Innovative projects include the restoration of the abandoned Colonial Theatre in Pittsfield, and the construction of a federally-chartered health center in Holyoke, which provides primary care services to uninsured and low-income individuals. 26% 71% The challenges for ARCH members going forward are to respond to the changes in the larger community development finance industry and to increase the scale of their operations. Indeed, the community development landscape today is very different than it was 20 years ago, with investors, lenders, and developers all scrambling to bid on affordable housing contracts. While some of the consortia still focus specifically on providing permanent financing for multi-family property development, others have shifted the emphasis of their program and products to fill new gaps in community development finance. In addition, ARCH members have been working to securitize their loans in the secondary market to leverage more capital for new deals. To date, ARCH members have sold a total of $527 million in loans in the secondary market. Conclusion In the pages that follow, we profile each of the ARCH members and examine some of the ways the consortia have evolved to respond to the local community development needs in the states they serve. The profiles highlight the diversity of products, programs, and accomplishments of each of the ARCH members. The report offers a small glimpse into the way ARCH members partner with nonprofits and investors to promote community development, with an eye toward developing and preserving affordable housing, creating jobs and strengthening communities. 3% Low-Income < 50% of AMI Low-Income < 50% of AMI Moderate-Income <80% of AMI Moderate-Income < 80% of AMI Other Other Figure 1: The Majority of ARCH Financed Units are Affordable to Low-Income Households 2 Alabama Multifamily Loan Consortium (AMLC) W hile Alabama may not immediately jump to mind as an expensive place to live, the state nevertheless does face a real shortage of affordable rental properties in both rural and urban areas. In the last five years, the Fair Market Rent (FMR) for a two-bedroom apartment has increased by approximately 15 percent, from $448 to $527 a month, while the minimum wage has remained flat at $5.15 an hour. According to the National Low Income Housing Coalition, a minimum wage earner must work a minimum of 79 hours per week in order to afford a two-bedroom apartment in the state. Membership in the AMLC has grown from 25 founding banks in 1996 to more than 50 participating banks in 2005, with commitments totaling more than $60 million. Since 1999, the Alabama Multifamily Loan Consortium (AMLC) has been working to close the gap on affordable housing production and meet the needs of Alabama’s lowincome families. As of December 2005, AMLC had originated loans totaling $32.8 million, and had financed just over 2,000 affordable apartments across the state. The majority of these apartments are affordable to households earning less than 60 percent of area median income. In addition, AMLC ensures that 10 percent of the units are accessible to tenants with disabilities. AMLC fills an important niche in the affordable housing market. By pooling risk and by specializing in long-term, fixed rate permanent mortgage loans, AMLC helps its member banks to lend in areas that they wouldn’t be able to reach on their own. AMLC brings specialized underwriting and loan servicing expertise to every deal, and has been able to help leverage public funds such as Low Income Housing Tax Credits and HOME funds. AMLC is also a leader in developing affordable housing for populations with special needs. In 2002, for example, AMLC provided a permanent mortgage loan of $563,000 to build Angela Meadows Apartments, a 48 unit development in the city of Albertville. Eight of the units are set aside for persons with mental disabilities who are able to live independently—the first project in the state to respond to the housing needs of this population. Mental health and supportive services are offered on-site. The need for affordable housing in Alabama is unlikely to diminish in the near future. In 2005, the combined impact of Hurricanes Ivan, Katrina, and Dennis took its toll on the state’s housing stock, leaving many residents without a suitable place to live. In Mobile County alone, more than 1,000 homes were severely damaged or destroyed. Rising insurance fees and the costs of building materials in the region are making it even more difficult to produce affordable housing. AMLC intends to continue working with its partners to ensure that low-income families in Alabama have a safe and affordable place to call “home.” Huntsville 59 Gadsden Birmingham 20 Tuscaloosa Montgomery 85 Dothan 65 Mobile Map 2: Distribution of AMLC Loans AMLC has financed more than 2,000 affordable units in both rural and urban communities. 3 California Community Reinvestment Corporation (CCRC) F ounded in 1989, the California Community Reinvestment Corporation (CCRC) has been a leader in addressing the shortage of quality affordable housing in California. Since its inception, CCRC has approved more than $800 million in affordable housing loans and made 26,000 housing units available to residents who earn 60 percent or less of the local area median. Given the difficulties of building affordable housing in one of the nation’s most expensive housing markets, these numbers alone are impressive. But CCRC hasWashington much had a bigger impact on the field than just the production of affordable housing. From day one, CCRC has been a leader in developing new products that fill financing gaps, pushing the field forward and making difficult deals commonOregon place. CCRC pioneered mortgages for Low Income Housing Tax Credit projects at a time when lenders felt these projects were too ‘risky’. Mary Kaiser, CCRC’s President, “CCRC’s focus on finding gaps in the housing financing structure has shown there’s a significant amount of work that needs to be done to meet the housing needs of people in the middle income range.” notes that in 1989, “finding permanent, long-term mortMontana gages to finance the units subsidized by the Low Income Tax Credit program was difficult. Today, it’s no longer an Idaho issue.” In 2001, CCRC developed the Tax Exempt Private Placement Bond Program, providing developers with a new source of revenue to help subsidize the production of affordable housing units. The program is now one of CCRC’s leading products, with bond activity approaching Wyoming one-third of the business. “The field of affordable housing requires us to find new approaches to leveraging financial resources.” says Kaiser. “CCRC’s bond program provides banks with an attractive CRA investment that directly benefits low-income families.” CCRC’s newest innovation is the Workforce Housing Fund, specifically designed to help the teachers, health care Utah workers, and fire, police and other municipal workers that are increasingly being priced out of California’s housing market. According to Kaiser, “CCRC’s focus on finding gaps in the housing financing structure has shown there’s a Colorado significant amount of work that needs to be done to meet the housing needs of people in the middle income range.” The Workforce Housing Fund, capitalized at $30 million, will invest in projects that create for-sale housing units affordable to households earning from 80 to 120 percent of area median income. The fund provides equity financing for up to 25 percent of the housing project costs. Several Arizona of CCRC’s member banks, including Bank of the West, Wells Fargo, Union Bank of California, Bank of America, Washington Mutual, City National Bank and Montecito Bank & Trust, have invested in the fund, and projects are New Mexico selected so that investments in the Fund are CRA-qualified. Impact Community Capital, a consortium of major insurance companies, is another key investor. CCRC also invested $4 million of its own capital. ! ( ! ( ! ( ! ( ! ( ! ( ! ( !! ! (( ( ! ( !! ! (( ( ! ( ! ! ( ( San Francisco Metro Area ! (! ( ! ( ! ( ! ( ! ( ! ( ! ( !! ! (( ( !! (( ! ( ! ( ! ( !Sacramento ( ! ( ! ( !! (( ! ( Nevada ! ( Yosemite NP Fresno ! ! ( ( ! ( ! ( San Luis Obispo ! ( ! ( ! ( ! ( !! (( ! ( ! ( ! ( ! ! ! ( ( ( !! (( ! ( ! ( ! ( 5 ! ( ! ( ! ( ! ( ! ( § ¨ ¦ Death Valley NP ! Bakersfield ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ! ( ( ! ( !! ! (( ( ! ( ! ( !! ! !! (( ( (( ! ( ! ( !! (( ! ( !!( (( ! ! ! ( ( ( ! ( !!( ( ((! Los Angeles Metro Area !! ! ! ! ! ( ( ((! ( ! ( ! ( ! ( !! ! ! (( ( ( ! ( ! ( ! ! ( ( ! ( ! ( !! (( ! ! ( ( ! ( ! ( ! ( Map 3: Distribution of CCRC Loans California has the least affordable rental housing in the country, with families having to earn $21.24 an hour to afford a twobedroom apartment at fair market rent. CCRC has been working to bring affordable housing to communities across the state. 4 CCRC recently approved its first Workforce Housing Fund venture, a $4.8 million investment in the Fuller Lofts, a $38 million project that will create 102 units of for-sale housing just minutes from downtown Los Angeles. At least 45 of the homes will be sold to families earning no more than 120 percent of the area median income. The lower priced units will sell for roughly $375,000 for a four-member family, with comparable market-rate units expected to sell for $500,000. The developer is Livable Places, Inc., a nonprofit corporation formed in 2001 specifically to create workforce housing and to encourage the development of affordable housing through education and advocacy. “Through our willingness to create innovative loan structures, tailored to each project’s needs, we have succeeded in financing the cutting edge and hard-to-do deals,” notes Kaiser. “There’s no other option if we hope to continue increasing the supply of affordable housing in California, and we look forward to tackling the next challenge.” Figure 2: St. Stephens Senior Apartments Located in San Diego, St. Stephens provides 50 units of affordable senior rental housing in one of California’s more expensive real estate markets. 5 Community Investment Corporation (CIC) W alking through Chicago’s low-income neighborhoods, it’s hard to find a block that hasn’t been positively affected by the work of the Community Investment Corporation (CIC). While most of the ARCH members work statewide, CIC has focused its efforts on providing rehabilitation loans for apartment buildings of six or more units in Chicago’s low-income neighborhoods. Since 1984, CIC has made approximately 1,300 loans totaling more than $720 million—and has rehabilitated more than 35,000 units. The overwhelming majority of these units are affordable to families earning less than 50 percent of area median income. In 1999, an estimated 28 percent of Chicago’s rental units were in poor condition, meaning that over 100,000 substandard rental units would need “substantial renovation” . . . most derelict buildings on a block and works to address the range of problems facing the property—from evicting squatters and tenants with a history of drug or gang activity, to clearing out debris and adding security measures, to working with the owner to rehabilitate the building and bring the property up to code. If the owner or mortgage holder can’t be persuaded to make necessary repairs to a building, CIC, with the help of the city, will gain temporary control of the structure and pass it along to a more responsible owner with secure financing. In most cases, government subsidy for the rehabilitation is not required, yet the rents remain affordable to residents earning below 50 percent of AMI. As of August 2006, the Troubled Buildings Initiative has processed over 275 buildings with over 5,000 units, with rehab completed or in progress for 148 buildings with nearly 3,000 units. In addition to providing loans and administering the Troubled Buildings Initiative, CIC’s programs work to support local capacity for community development and neighborhood revitalization. For example, CIC runs the Property Management Training Program, a workshop series that provides landlords with the knowledge to better market, CIC’s focus on rehabilitation and affordable housing preservation is driven by Chicago’s unique housing situation. Many of Chicago’s neighborhoods were built before 1930, and particularly in lower-income areas, the lack of maintenance and investment has led to the deterioration of the rental housing stock. Buildings in communities like North Lawndale and the South Side are characterized by code issues and structural problems, including rats, ceiling leaks, and exposed electrical wiring. In 1999, an estimated 28 percent of Chicago’s rental units were in poor condition, meaning that over 100,000 substandard rental units would need “substantial renovation” to meet basic housing quality standards. By working to rehab these units, CIC not only ensures the availability of affordable housing, but also helps to promote neighborhood revitalization through the removal of blight and abandoned buildings. One of CIC’s most successful programs is its Troubled Buildings Initiative, funded by City of Chicago and a federal CDFI grant. Working with city agencies, CIC targets the Ford Heights Cooperative, Inc. For 10 years, residents from a Ford Heights cooperative worked to win back their homes from the US Department of Housing and Urban Development, which had taken over ownership due to poor management and missed mortgage payments. The single-family homes had deteriorated during that period and required major renovations. For two years, CIC worked with the co-op members to put a deal together, which resulted in a CIC loan and a Federal Home Loan Bank grant. A portion of CIC funds was used to train the co-op members to better manage the property and operations. Today, these 100 three-bedroom homes are fully rehabbed and 100 percent occupied. 6 manage and maintain residential property. As of early 2005, more than 3,000 property owners and would-be owners have attended the program, which won the Institute of Real Estate Management 2005 Education Award. By helping local property owners better manage their properties, CIC not only ensures higher quality housing, but also helps local owners develop more sustainable business models. CIC’s newest venture is a partnership with the University of Chicago. The program creates a new $10 million program to promote neighborhood revitalization and affordable housing on Chicago’s South Side, an area that is currently at risk of being torn down or converted into condominiums. The program is expected to preserve approximately 180 housing units. CIC’s work reflects the fact that much of the preservation of affordable housing falls to local property owners, and that the availability of public subsidy is shrinking. Increasingly, private loan and equity dollars need to cover the majority of the costs of rehabilitation. By working to create innovative and user-friendly loan products, and by building the capacity of local owners to manage their properties effectively, CIC is making a lasting impact on affordable housing in Chicago’s poorest communities. East Garfield Park For more than 15 years, Johnnie Herron had been putting band-aids on her 20-unit building in the East Garfield Park neighborhood. She didn’t want to abandon the building but at the time couldn’t get banks to consider a rehab loan. When she applied for a loan from CIC in 1986, she went through a very detailed review that helped her understand how to rehab and operate the building successfully. With financing from CIC, the city and her own funds, Herron replaced major systems and patched more cosmetic items. She kept going, and rehabbed a vacant six-flat next door. Then she acquired a building in the Austin Neighborhood from a tax scavenger sale and rehabbed it. With CIC’s help, Herron has successfully rehabbed and operated five projects, all of which provide affordable housing for Chicago’s low-income families. Map 4: Distribution of CIC Loans By focusing its attention on rehabilitation loans, CIC has made a measurable impact on neighborhood revitalization in Chicago’s poorer neighborhoods. Austin West Town Uptown Lake Michigan North Lawndale Fuller Park South Shore Englewood 7 Community Investment Corporation of North Carolina (CICNC) I n December of 1990, in an effort to address the shortage of affordable housing in North Carolina, the North Carolina Bankers Association formed the Community Investment Corporation of North Carolina (CICNC). CICNC is an affordable housing loan consortium that provides long term, permanent financing for the development of low and moderate income multifamily and elderly housing. Since 1991, CICNC has provided loans totaling $143 million, producing more than 8,300 units of low-income housing in North Carolina. CICNC works in partnership with government agencies in order to leverage both public and private funding for affordable housing. A good example of this is the Madison Glen Apartment complex, developed by the nonprofit organization, Downtown Housing Improvement Corporation (DHIC). DHIC requested a first mortgage loan from CICNC in the amount of $4.4 million to complete the financing requirement on an existing 120 unit multi-family development located in Raleigh, NorthWest Virginia The project Carolina. Kentucky Since 1991, CICNC has provided loans totaling $143 million, producing more than 8,300 units of low-income housing in North Carolina. financing also included a Low Income Housing Tax Credit allocation, generating approximately $2.5 million in cash equity to the project. The North Carolina Housing Finance Agency committed an additional $600,000 to the project under its Rental Production Program, which provides loans of up to $1 million per development for the construction Shenandoah NP Maryland Maryland of rental housing for households below 50 percent of area median income. DHIC also secured funding from both the City of Raleigh and Wake County. Virginia Tennessee Greensboro Asheville Raleigh Great Smoky Mountains Charlotte Fayetteville Wilmington South Carolina Georgia Map 5: Distribution of CICNC Loans CICNC has been providing permanent financing for affordable housing in North Carolina for 15 years, building more than 8,300 units. In late 2005, CICNC began using its expertise to promote affordable housing development in South Carolina as well. 8 Low-income residents are increasingly being priced out of Raleigh, where market rents are affordable only to those earning the median income and above. The combination of private financing and public subsidy are necessary to bring rents within reach of low-income households in North Carolina. At Madison Glen, 80 of the 120 units are affordable to low-income families, with many of the units targeted at households earning 30 percent or below of the area median income. In addition to providing high quality housing, Madison Glen has an on-site services coordinator who helps residents access workforce development programs and other supportive services. The property is located in a vibrant part of town, within one-half mile of shopping centers, theaters, medical offices, and other amenities. Low-income residents are increasingly being priced out of this neighborhood, where market rents are affordable only to those earning the median income and above. For low-income residents of Raleigh, the benefits of having affordable rental units at Madison Glen are substantial. Donna Augustono, 47, a single mother with three daughters, said she saves at least $200 a month in rent by living at Madison Glen. She is able to save part of that money each month, and she hopes to eventually use it for a downpayment on a home of her own. In late 2005, CICNC began providing financing in South Carolina as well, recognizing the need for a loan pool that could bridge the permanent financing gap there. In the first year alone, CICNC has already committed more than $5 million in financing to properties in South Carolina. In addition, CICNC recently invested in a new loan servicing system that will allow the consortium to offer loan servicing to outside organizations for a reasonable fee. Its new “Downtown Revitalization Loan Product” provides municipalities with the ability to establish loan pools to renovate commercial buildings in the downtown area. CICNC also sponsors the North Carolina Affordable Housing Conference. Over 50 industry experts presented at the 2006 conference on topics such as Green Building and Design, Community Economic Development, Federal Low Income Housing Tax Credits, Rescuing Distressed Properties, Equity Resources, and CRA Opportunities. The conference drew over 300 registrants, including bankers, lenders, for-profit and non-profit developers, federal, state, and local government employees, CDC’s, advocacy groups, and politicians. By expanding its focus and program areas in these innovative ways, CICNC will continue to increase the positive impact it is having on low-income families and communities. Figure 3: Madison Glen Located in Raleigh, North Carolina, Madison Glen Apartments provides families earning less than 30 percent of AMI high quality and affordable housing. 9 Florida Community Partners (FCP) I t’s not just all that sunshine that has made for the recently hot housing market in Central Florida. The region has experienced strong and continued growth in the market for vacation homes, and an upsurge in job creation in the area has stimulated in-migration from within state borders and beyond, which has consequently driven up demand for housing. Orlando has been especially impacted; between the first quarters of 2005 and 2006, the city saw a 34 percent increase in single-family home prices--the second highest increase in the nation. In addition, rental costs in the area have been rising with both the increased demand for multifamily housing and an increase in condominium conversions. These trends have led to a growing gap between earnings and housing costs, putting housing beyond the reach of many low- and moderate-wage earners in the area. Florida Community Partners (FCP) has been working to diversify its services to address the growing and changing housing needs of lower-income households in Central Florida. No longer only providing financing to developers of affordable multifamily housing, FCP has been providing technical assistance to local governments on workforce housing and land trust programs as ways to both increase and preserve housing affordability. FCP’s involvement in single family home production has also been on the rise, driven both by partnerships with local governments, forprofit and nonprofit developers, and by returns from investments made through Florida Community Capital Corporation (FCC), a certified CDFI affiliated with Florida Community Partners. FCP participates in FCC’s activities either through direct investment in, or direct lending to, CRA-qualified projects. A highlight of this type of investment activity is FCC’s work in developing affordable single family homes in Eatonville, a small town located six miles north of Orlando and one of the first African American towns to be incorporated after the Emancipation Proclamation. In recent times Eatonville has seen less new housing development and economic growth than surrounding areas. However, in the past year FCC has developed nine single family homes affordable to those earning 80 percent of Area Median Income, and has been approached by a local church to build 12 additional homes. FCC intends to leverage the proceeds from home sales to build 27 more homes in the town. “We all need to look at how to best use surpluses and reuse proceeds from investments to make an impact in our communities,” said Gordon Shaw, vice president of Florida Community Capital. FCP and FCC have 200 single family homes and 600 multifamily units in the pipeline for the upcoming 12 months, and are actively working with local governments and nonprofits to guide further production of affordable units. By diversifying their activities and helping to develop partnerships between local government, for-profit, and nonprofit developers, Shaw believes that FCP and FCC can provide greater opportunities for the struggling households in Central Florida. Figure 4: Eatonville, Florida Nine new single-family homes affordable to households earning less than 80 percent of AMI have so far been built by FCP in Eatonville. 10 Georgia Affordable Housing Corporation (GAHC) F or more than 15 years, Kuteene “Kay” Brown and her family had enjoyed living in a three-bedroom singlefamily home in LaGrange, Georgia. In 2000, Brown retired from her job as an office manager at a local medical office, and like many retirees, she looked forward to enjoying a more leisurely lifestyle at home. But that dream was put on hold almost immediately as Brown found herself looking for something thousands of Americans search for every day—affordable housing. “After my former husband suffered a stroke, I couldn’t afford to maintain our house by myself,” says Brown. “I’m on disability, and it takes money to keep up with the house and the yard, so we just could not pay anymore for housing.” Brown faced an even greater setback as she separated from her former husband, and struggled to meet the rising maintenance costs of her home on a fixed-income. “At the time, I didn’t have a car, and since I’m raising my granddaughter, I had to find someplace that was affordable, close to transportation, and that offered some of the amenities you’d find at home.” In 2005, the grandmother of two found what she was looking for at Valley Ridge Apartments in LaGrange. Located within walking distance of the local Wal-Mart and less than five miles from the city’s major interstates, the 80-unit apartment community offers one, two, and threebedroom apartments affordable to residents that earn 60 percent or less of the area median income. Valley Ridge offers monthly rents ranging from $187 to $765 for low- to moderate-income families as well as a small mix of marketrate apartments. Residents can also take advantage of a long list of high-end amenities including a swimming pool, a computer lab with internet access, a fitness center, a picnic and playground areas, and an on-site community center. Financed in part through a $2 million permanent loan from Georgia Affordable Housing Corporation (GAHC), as well as a mix of public and private funding resources, the $7.2 million development took nearly two and a half years to develop, and required a host of strategic partnerships to make it affordable to lower-income families. “This was a challenging development to design and to build,” said Valley Ridge developer Alan Rappuhn. “We received a lot of help from the city, the state, GAHC, and the Raymond James Tax Credit Fund. They were are all so committed to bringing affordable housing to the workers and residents in the LaGrange community, and with these partnerships we were able to provide a level of amenities that you often can’t find in higher-priced rental communities.” Since its inception, GAHC has been making properties like Valley Ridge possible by providing the permanent financing on affordable multi-family housing projects. GAHC loans have totaled nearly $20 million, and have helped to build more than 1,000 housing units across the state. GAHC also plays an important capacity building role for affordable housing in the state. Every year, GAHC partners with the Georgia State Trade Association of Nonprofit Developers (G-STAND) on an affordable housing conference that serves to educate nonprofit developers about best practices and helps to build a strong network of developers committed to helping the low and moderate income families in Georgia. Today, Brown and her granddaughter Amanda live in a twobedroom, two-bath apartment that rents for less than half the amount she paid for her monthly house note, says Brown. “This development offers people the chance to get attractive, affordable housing with amenities that appeal to both me and my 15-year old granddaughter,” she says. “I’m so thankful for all the resources and all the people who brought me my new home at Valley Ridge. “I can’t imagine living anywhere else, and we’ll be here as long as they’ll have me.” Figure 5: Valley Ridge Apartments Kay Brown cuts the ribbon on the new Valley Ridge Apartments, financed by a $2 million loan from GAHC. 11 Hawaii Community Reinvestment Corporation (HCRC) F inancing the development of affordable rental housing has grown increasingly difficult in Hawaii. Rising construction costs and high operating costs have created a development cost of $250,000 to $300,000 per unit, and low wages and rental rates result in cash flows that are inadequate for carrying a great deal of debt service. In this environment, new affordable developments rely heavily on financing from both state and federal tax credit equity as well as other public subsidies, such as HOME, CDBG, FHLB, USDA, and the state’s Rental Housing Trust Fund, to supplement a conventional loan typically equal to only about 10-15 percent of a development budget. Hawaii Community Reinvestment Corporation (HCRC) has accordingly shifted the focus and content of its programs to accommodate the changing financial needs of affordable housing developers in the state. HCRC began operations fifteen years ago with only a loan program, but today, that original loan program is a minor aspect in HCRC’s operations. A number of tax credit equity funds now compose the majority of their operations and account for the bulk of organizational revenue due to the growing reliance on tax credit syndication. Because the tax credit program is not well understood by many in the community, HCRC helps to build local capacity by offering seminars on tax credit related issues and the various financing programs available for affordable housing. HCRC brings in national experts from the mainland to present “state of the art” knowledge to local players in the field. The organization has conducted three seminars each year for the past 10 years, and in the past year they have covered a variety of compliance and regulatory issues surrounding the use of New Market, Historic, and Low Income Housing Tax Credits. Another way that HCRC has helped affordable housing developers sort through the complexities of the tax credit program is in offering consulting services. In this work, clients are assisted in creating a financial structure for their projects and in preparing applications for tax credit awards, Federal Home Loan Bank programs, and other resources for financing affordable rental housing. While this work is done on a contingency basis-- if awards are not granted, HCRC does not get paid-- HCRC has had a 75 percent success rate in their consulting work. Currently, HCRC is in the process of developing a “bridge loan” product to bring additional construction funding to tax credit projects. In addition, HCRC has begun to explore new opportunities in acquisition/rehabilitation projects, expiring use projects, and 4 percent tax credit/bond issues as potential ways to expand the availability of affordable rental housing. Evolving in response to community needs is at the heart of HCRC’s work, and Don Tarleton, President of HCRC, believes the organization has become better and stronger in light of the adaptations they’ve made. Said Tarleton, “Maybe Charles Darwin actually had something there!” Map 6: Distribution of HCRC Loans HCRC has financed affordable rental units throughout Hawaii through both its mortgage lending and tax credit equity funds. Kauai Honolulu Kalawao Maui Haleakala NP Hawaii Hawaii Volcanoes NP 12 Idaho Community Reinvestment Corporation (ICRC) A n innovative partnership between the Idaho Housing and Finance Association (IHFA) and the Idaho Community Reinvestment Corporation (ICRC) is working to provide affordable rental housing to low- to moderate-income families in the state. ICRC, a nonprofit mortgage-banking consortium, provides capital for the permanent financing for the development and acquisition of affordable multi-family housing throughout Idaho. IHFA provides the affordable housing “knowledge,” underwriting loan proposals and presenting them to the ICRC Loan Committee. The partnership builds on each of the organizations’ respective strengths, while at the same time leveraging federal housing resources and providing a “one-stop shop” for affordable housing developers. One of the key advantages of ICRC is that it is able to reach rural and underserved areas, as well as provide affordable housing in more expensive cities like Boise. The benefits of this partnership have been substantial. Since ICRC was formed in 1993, it has facilitated the production of 1,666 affordable housing units in Idaho, totaling $42.5 million in investments in communities across the state. The consortium now includes 19 member banks and manages a revolving loan pool of $45 million. One of the key advantages of ICRC is that it is able to reach rural and underserved areas, as well as provide affordable housing in more expensive cities like Boise. Northparke in Mountain Home, Idaho, is a good example of how ICRC works with community partners to build affordable rental housing for low-income families. Nestled between the Danskin and Owyhee Mountains, Mountain Home is experiencing housing affordability pressures as the result of population growth due to the nearby Air Force base. Built in two phases, Northparke includes 80 units, of which 69 are designated as affordable for low- to moderate-income renters. ICRC provided the permanent loans for the project, and Washington Mutual Bank provided the construction loans. The development also leveraged significant public sector dollars. Through the Low Income Housing Tax Credit Program, IHFA generated $3.16 million in equity for Northparke. The tax credits, which provide a dollar-for-dollar federal tax liability reduction, benefit the development by reducing debt, thereby bringing rents within the reach of more families. IHFA also provided two HOME loans ($400,000 and $365,000) which further offset the costs of development. Northparke and its community of residents are thriving, and residents enjoy the high quality housing and large play areas that characterize the development. “Safe and affordable housing is critically important for Idaho’s families. Nineteen Idaho banks, through their shared ownership of the ICRC, provide the financing to make it happen,” says JoAnne Wertz, executive director of the Idaho Community Reinvestment Corporation. “It’s only through partnerships among the public and private sector that we will be able to continue to meet affordable housing needs.” ! ( ! ( ! ( ! ( § ¦ ¨ 90 ! ( ! ( ! ( Boise !! (( !! ! ! (( ( ( ! ( !! ! (( ( Idaho Falls ! ( ! ( ! ( § ¦ ¨ 84 ! ( ! ( ! ( ! Pocatello ( ! ( ! ( ! ( Map 7: Distribution of ICRC Loans ICRC works in partnership with the Idaho Housing and Finance Association to meet the affordable housing needs in Idaho, including harder-to-serve communities in remote rural areas. 13 Neighborhood Lending Partners (NLP) N eighborhood Lending Partners (NLP) opened for business in 1993 in response to an affordable housing need identified by a coalition of Tampa Bay governments, local banks and the affordable housing community. NLP’s first product line consisted of a single loan product-- permanent loans for multi-family rental properties that received Low Income Housing Tax Credits-- and the initial market consisted of three counties in the Tampa Bay MSA. As NLP became involved in the community, it responded to the community, nonprofit developers, local governments, and its banking members in expanding its product line to accommodate broad-based needs. NLP is also assisting additional new development in the neighborhood by committing to construction/permanent financing for a mixed-income multifamily rental property. Currently, NLP has 12 loan products that it offers throughout the entire State of Florida, which include construction and permanent loans for multi-family rental properties, economic development loans in conjunction with the SBA 504 program, and land acquisition loans for future development of affordable housing or economic development. NLP also assists various local governments with their affordable housing needs by providing underwriting for multi-family loan applications, builder lines of credit and administering Florida’s State Housing Incentive Program loans. NLP continues to look ahead at additional product lines to assist with its mission, including an application for New Market Tax Credits (NMTC). One recent transaction involved combining several of these loan products to assist a nonprofit with the construction and permanent financing of a 47,000 sq. ft. shopping center located in a Community Redevelopment Area of St. Petersburg, Florida. The completion of this redevelopment project has been both a feather in the City’s cap and a success story for NLP. The shopping center’s anchor is a SweetBay Grocery Store, which is the only grocery store in the neighborhood. It is seeing sales at this location out-perform a sister store that opened the same day in a census tract with an Area Median Income (AMI) that is 334 percent of the AMI of the subject’s CRA community. The various subsidies required to open this shopping center include a low-cost land lease from the City, a loan from the City, a grant from the City, and a grant from the Office of Community Services (a federal program operated by the Administration for Children and Families). In addition, NLP was initially able to provide a first mortgage construction loan for the project based on a permanent financing commitment via an Economic Development and Growth Enhancement (EDGE) Loan from one of its member banks (via the Federal Home Loan Bank of Atlanta), as well as a second mortgage construction loan with City funds and NLP’s CDFI funds. When the shopping center was ready to convert to permanent financing, NLP was able to assist two of its member banks to structure a leveraged NMTC transaction with one of those banks stepping into the EDGE loan commitment. NLP is also assisting additional new development in the neighborhood by committing to construction/permanent financing for a mixed-income multi-family rental property. These developments piggyback on other City-led investments in the neighborhood, including its only banking center, a library, and a post office. The investments and loans in this neighborhood are just one example of NLP’s expertise and ability to leverage public and private funding in order to preserve and revitalize communities. 14 Network for Oregon Affordable Housing (NOAH) T his past year, NOAH celebrated its 15th anniversary. Originally a 12-member consortium with a $13 million credit line, NOAH has grown into a thriving multi-faceted lending consortium of 21 member banks with lending capacity topping $112 million for permanent financing and $3 million for pre-development financing. During these fifteen years, NOAH has become a favorite among for-profit and nonprofit affordable housing developers across Oregon and recently celebrated another milestone by funding its 100th housing loan. NOAH’s loans have resulted in the development of over 4,600 units of affordable housing financed via $110 million in permanent debt, corresponding to aggregate total project costs of $450 million. This represents a considerable investment in community development in Oregon and further underscores NOAH’s commitment to remain a vital partner in the creation of housing opportunity and jobs for Oregonians. Yet Oregon’s affordable housing needs remain pressing and diverse. NOAH continues to expand its product lines, as well as the range of suitable development types for financing, to better address the needs of CDCs, banks, developers and local communities. NOAH became certified as a Community Development Financial Institution (CDFI) in 2003, and recently received an award of almost $1.4 million from the CDFI Fund. These funds will be used to increase the organization’s capacity to provide more flexible loan rates and terms to affordable housing developers across the state. Severely distressed rural areas will be a primary target of these new capital resources in the form of both pre-development and permanent financing. Through their range of products, NOAH has been able to finance a spectrum of developments-- from family housing to senior residences to farmworker housing to special needs facilities. Very recently, NOAH was pleased to provide permanent financing for the West Gresham Apartments, a quality, transit-oriented project targeted to meet the housing and service needs of individuals with chronic mental illness. The project was developed by Cascadia Behavioral Healthcare, a well respected nonprofit agency that provides comprehensive social services to this population throughout greater Portland. As such, the sponsor’s wealth of experience contributed to a particularly targeted, thoughtful project design which included multiple common areas encouraging socialization and visitation as well as private consultation rooms intended to simplify access by Figure 6: West Gresham Apartments NOAH provided permanent financing for Portland’s West Gresham Apartments, a transit-oriented project that meets the housing and service needs of individuals with chronic mental illness. residents to social services and treatment. All of the 27 oneand two-bedroom units utilize Project Based Section 8 subsidy, a further positive indication of the housing community’s commitment to building a proper safety net beneath this vulnerable population. NOAH welcomes such opportunities to team with others and make a difference. Portland Salem Eugene Bend Crater Lake NP Redwood NP Map 9: Distribution of NOAH Loans NOAH’s loans have resulted in the development of over 4,600 units of affordable multi-family, senior, farmworker, and special needs housing. 15 Utah Community Reinvestment Corporation (UCRC) U tah is home to the majority of the nation’s industrial banks, with aggregate assets of over $150 billion. While industrial banks may provide specialized banking services to the industrial sector of their parent—this ranges from financing postage to financing taxi medallions— they also must satisfy the Community Reinvestment Act in consideration of benefits derived from their charters. To do this they actively collaborate with Utah’s commercial banks in the extension of credit. UCRC was born out of one of these collaborative efforts by the industrial bank and commercial bank communities. UCRC was established to expand access and improve reliability of credit to Utah’s small market. By the time UCRC opened its doors in 1999, the Low Income Housing Tax Credit (LIHTC) program was over 13 years old— banks were more than familiar with the housing tax credit program, and the financial structures had matured to where Fannie Mae offered 18-year fixed rate term loan purchases on LIHTC properties. However, prior to UCRC entering the market, access to credit was remote, inconsistent and expensive. LIHTC developers had to secure term debt through mortgage brokers or banks utilizing centers of expertise located in different time zones and cultures. This hindered Utah’s ability to use the credit in more creative ways to serve our residents most in need. By 2001, however, UCRC had established itself as the primary source for private term debt for affordable rental housing, providing 85 to 95 percent of the private term debt needs of Utah’s LIHTC developers. UCRC has funded over $52 million and committed another $3 million in term debt. UCRC has proven its financing leadership through development of products that meet the needs of Utah’s affordable housing producers. In response to the complaint of the high cost and significant processing time required to acquire and Turnquist Cottages ! ( UCRC takes special pride in its value added service to developers. When the Wilcox’s sought help to develop 14 senior housing units in Elmo, Utah (pop: 368) the story was compelling but the task was daunting. Having successfully operated an assisted care facility cobbled together on hope and prayer and the private investment of a former client – Walter Turnquist – Butch and Caleen Wilcox determined that many of their clients needed minimal if any assistance but just wanted to live in community to escape the loneliness of being a rural widow(er). But the capture rate far exceeded any bank’s limit, and the “if you build it they will come” theory was convincing no one. UCRC led the application process for housing tax credits and state debt financing, arranged for a member bank to be the credit investor, and provided a $255,000 term loan. Today, in of the one of the most sparsely populated counties in the nation, fourteen elderly residents are experiencing the love, hospitality and grace of two dreamers. 16 ! ( ! ( ! ( Ogden ! ( ! ( !! (( ! ( !! (( ! ( ! ( ! ( !! (( ! ( ! ( ! ( Salt Lake City t u 40 ! ( ! ( Provo ! ( ! ( ! ( ! ( § ¦ ¨ 70 ! ( Arches NP Capitol Reef NP Canyonlands NP § ¦ ¨ 15 ! ( ! ( Bryce Canyon NP Zion NP !! (( ! ( ! ( ! ( Map 10: Distribution of UCRC Loans UCRC has made more than $50 million in loans to help build and renovate 2,200 affordable housing units in Utah. rehab properties using traditional short-term construction debt, UCRC created its one-stop acquisition/rehab/term debt product. UCRC has funded $15.4 million to finance 13 projects using this product, enabling 680 housing units to be substantially rehabilitated and preserving tenant rental subsidies on 331 of these units. When UCRC realized that Utah’s limited supply of housing credit was being diverted to acquiring existing HUD subsidized properties primarily to raise equity to satisfy loan to value (LTV) ratios, UCRC developed a mezzanine debt product to minimize the equity requirement. For nonprofits, this preserves their property tax waivers and avoids substantial transaction and operating costs associated with LIHTC partnerships. Upon discovering that developers were seeking FHA insured loans on low LTV housing credit projects simply to get longer amortizations, UCRC created a 40-year amortizing loan product. This saves borrowers the processing and premium costs associated with mortgage insurance meant primarily to address high LTV issues. By spreading both repayment risk and interest rate risk among many loans dispersed throughout the state and across time, UCRC’s investors have become comfortable innovating to meet the challenges of the affordable housing market. UCRC has been able to fund over $18 million across 22 loans to produce 936 housing units in rural Utah. UCRC’s consortium structure enables banks concentrated along the Wasatch Front to realize primary assessment area CRA recognition for loans made throughout the State of Utah. This regulatory provision was key to attracting industrial bank participation and has created a significant benefit to rural Utah. While Utah may be the most urban state in the nation it also has a rural face. Rural Utah’s cities and towns range in population from 500 to 50,000, though most are below 10,000. While serving such rural areas with an assemblage of nationally syndicated financing products such as housing credits, bonds and securitized loans is not easy, UCRC has been able to fund over $18 million across 22 loans to produce 936 housing units in rural Utah. In seven short years UCRC has made a difference: financing over 2,200 units of affordable rental housing; assisting 10 organizations (both for-profit and nonprofit) develop their first housing tax credit property; securing a $74 million revolving credit line for housing finance; and providing consistent dependable financial service to Utah’s affordable housing industry. Artspace – Bridge Project Located across from Traveler’s Aid and the St. Vincent DePaul centers for the poor and homeless, The Bridge Project was a visionary redevelopment project by Artspace, Inc. providing retail, office and residential space that would catalyze future development in the area. Unable to attract construction financing using standard take-out financing conditions, Artspace turned to the UCRC for help. Working with US Bank’s local construction loan office, Enterprise Investment Partnership, and numerous other entities involved in the project’s financing, UCRC structured $2.6 million of term financing not conditioned upon occupancy and economic stabilization. The project is now home to 62 families, two art studios, an alternative music store, a beauty salon, a coffee shop and one of the most sought after tattoo artists in the state! With successful completion of this project, Artspace completed an adaptive reuse of the adjacent property with 100 percent of its space leased at certificate of occupancy. UCRC is proud of its role in jumpstarting the development of these homegrown art and culture oriented developments. 17 Figure 7: The Artspace Rubber Company Located in a once abandoned industrial building, the Artspace Rubber Company now provides affordable live/work spaces for artists in Salt Lake City. Washington Community Reinvestment Association (WCRA) I n the land of “latte-drinking, beamer driving Microsoft millionaires,” housing affordability has reached an alltime low for thousands of working families in Washington. According to the National Low-Income Housing Coalition, a worker earning the minimum wage ($7.16 per hour) must work 80 hours per week in order to afford a two-bedroom unit at the area’s Fair Market Rent. More than 200,000 rental households statewide earn less than 50% of the area median income (AMI), leaving them with little choice but to live in substandard units or pay an inordinate share of their income for housing. Since its inception, WCRA has approved over $190 million in loans, creating more than 7,600 units of affordable housing and nearly 71,000 square feet of commercial space. Recently, WCRA has begun to focus more on affordable housing development in Washington’s rural areas, since there is a growing need for housing for the agricultural workers who now reside there year round. For example, a long term loan from WCRA and a tax credit investment from the Key Investment Fund allowed local developers to build Logan Park Apartments, a multifamily, residential apartment complex geared specifically towards agricultural workers and their families. The State has called on WCRA’s expertise in this area and is working with WCRA to develop loan programs for both temporary and permanent housing on farm land. These programs will supplement the State funding of infrastructure development projects with growers—such as sewer and water lines. But it is in urban areas that WCRA has already had an impact. Approximately a quarter of WCRA’s loans are located in King County, which has the largest affordable housing need. Since 1992, WCRA has helped to create over 1,400 units of affordable housing in King County, for a total of more than $41.4 million in loans. Not only are these loans targeted at low and moderate-income households— those that earn less than 80 percent of AMI—but many of In an effort to alleviate the growing gap in housing affordability, the Washington Community Reinvestment Association (WCRA) began operations in 1992 in order to provide permanent financing and technical assistance for affordable housing in the State of Washington. WCRA membership has grown, and in 2005, 41 banks participated in the consortium. Since its inception, WCRA has approved over $190 million in loans, creating more than 7,600 units of affordable housing and nearly 71,000 square feet of commercial space. The loans serve predominately low-income families, with 99 percent of the units funded reaching households who earn less than 80 percent of the area median. More than half of the units are affordable to families who earn less than 50 percent of AMI. WCRA’s impact is statewide. Although many of its loans reach the particularly expensive real estate market in King County, WCRA has provided loans across the state, including many of the smaller urban areas in Eastern Washington. ! ( ! Bellingham ( ! ( ! ( ! ( ! ( ! ( Olympic NP North Cascades NP ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ! ( ( !! (( ! ( ! ( ! ! !!! ( ( ((( ! ( !! (( ! ! ( ( ! ! ! Seattle Metro Area ( (( ! ( !! (( ! ( ! !! ! ( (( ( ! ( ! ( ! ( ! !! ! ( (( ( ! ! ( ( ! ( ! ! ( ( Tacoma !! (( !!! ((( ! ( ! ( ! ! ( ( ! !! ( (( ! ( Spokane ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( !! (( !! (( ! ( § ¨ ¦ 90 Mount Rainier NP ! ( ! ( ! ( ! ( ! ( ! ( § ¨ ¦ 5 § ¨ ¦ 82 ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ! ( ( ! ( !! (( ! ( ( ! Vancouver ! ( ! ( !! (( Map 11: Distribution of WCRA Loans WCRA targets its financing to meet the affordable housing needs in the different communities in Washington, focusing on farmworker housing in the rural agricultural areas and multifamily properties in the expensive urban centers. 18 these loans are also located in low- and moderate- income geographies with a relatively higher proportion of minority and immigrant populations. WCRA not only works hard to ensure that the properties they support are financially feasible, but they also ensure that the loans will provide low-income residents with high quality housing. Construction standards are high, and properties are located close to transportation corridors and centers of employment. Impact on Statewide Affordable Housing Policy WCRA’s reputation and success in creating affordable housing has made them an important voice at the state and national policy level. In 2005, WCRA was involved in the successful effort to increase Washington State’s Housing Trust Fund to $100 million. Both the Washington Bankers Association and the Washington Financial League support the Housing Trust Fund, and WCRA enlisted the help of its financial institution members to educate their legislators about the value of the trust fund. In particular, they argued that money spent on affordable housing makes good business sense, increasing private investment and generating jobs for Washington’s communities. Judy Reed, the President of WCRA, says that the participation and support of the banking community for the state Housing Trust Fund has been a key component in the campaign’s success. WCRA plans to extend these efforts by educating local legislators throughout the state’s Congressional Districts about the benefits of investing in affordable housing. Through a series of meetings that will bring together bankers, advocates, and local leaders, WCRA hopes to build a solid constituency that can help to move the affordable housing agenda forward during future legislative sessions. Congressional District 1 2 3 4 5 6 7 8 9 Number of Loans 11 19 20 29 21 22 18 5 11 Volume of WCRA Lending $12,590,042 $23,007,935 $31,330,543 $22,501,625 $17,690,500 $17,783,500 $15,863,945 $7,285,200 $12,772,799 Affordable Housing Units Built 369 898 1,125 1,040 839 851 693 228 442 Figure 8: Building Political Constituencies An analysis of WCRA’s loans shows that the consortium finances affordable housing in every Congressional District. Showing that affordable housing increases private investment and creates jobs in these Districts, WCRA was a powerful voice in efforts to increase the funding for Washington’s Housing Trust Fund. 19 MEMBER BANKS AMLC Aliant Bank AmSouth Bank AuburnBank BancorpSouth Bank Bank Independent Bank of Tuscaloosa Bank of York BankTrust (Mobile) BankTrust of AL, Eufaula BB&T, Oxford CB&T Bank, Phenix City CapitalSouth Bank Cheaha Bank Citizens Bank & Savings Citizens Bank of Enterprise Colonial Bank Compass Bank Escambia County Bank Exchange Bank of Alabama Farmers & Merchants Bank, Centre Farmers Exchange Bank First American Bank First Commercial Bank First Community Bank, Chatom First Federal of the South First Gulf Bank First National Bank & Trust, Atmore First National Bank of Baldwin County First National Bank of Central Alabama First National Bank of Jasper First National Bank of Scottsboro First National Bank of Talladega First Tuskegee Bank Horizon Bank Merchants & Farmers Bank, Eutaw New South Federal Savings Bank Nexity Bank Peoples Bank & Trust Co. Peoples Bank of North Alabama Peoples Southern Bank Premier Bank of the South Regions Bank Slocomb National Bank SouthFirst Bank Sterling Bank SunTrust Bank Superior Bank United Bank Vision Bank Wachovia Bank West Alabama Bank & Trust Whitney National Bank CCRC America California Bank Banco Popular Bank of Agriculture & Commerce Bank of America Bank of Stockton Bank of The West California Bank & Trust California Center Bank California Commerce Bank California Savings Bank Cathay Bank Citizens Business Bank City National Bank Comerica Bank Community Bank Exchange Bank Farmers & Merchants Bank of Central California First Bank & Trust First Coastal Bank First Northern Bank First Private Bank & Trust First Regional Bank Hanmi Bank HSBC Bank USA Imperial Capital Bank JPMorgan Chase Bank, N.A. Manufacturers Bank Mellon 1st Buisness Bank Merchantile National Bank Mid-State Bank Montecito Bank & Trust National American Bank Santa Barbara Bank & Trust Silicon Valley Bank South Bay Bank Standard Bank State Bank Of India Tri-Counties Bank U. S. Bank Union Bank of California, N.A. United Commercial Bank Vineyard Bank Washington Mutual Bank Wells Fargo Bank, N.A. CIC Amalgamated of Chicago Associated Bank of Chicago Banco Popular Bank Leumi USA 20 MEMBER BANKS Bank of America Illinois BankFinancial Bridgeview Bank Chase Citibank FSB Cole Taylor Bank Community Bank of Lawndale CCO Mortgage Cosmopolitan Bank & Trust Delaware Place Bank FannieMae Fifth Third Bank First American Bank First Bank and Trust of Illinois First Bank FSB First Eagle First Midwest First Security Trust and Savings Bank Firstar Bank Illinois Flower Bank FSB Founders Bank General Board of Pensions (United Methodist Church) Guaranty Bank JPMorgan Chase Bank N.A. Harris Trust & Savings Bank Household Bank LaSalle Bank N.A. Lincoln Park Savings Bank MB Financial Bank Mid-America Federal Savings Bank Midwest Bank and Trust Company Oxford Bank and Trust Park National Bank Peoples Gas Neighborhood Development Corporation Private Bank Republic Bank Seaway National Bank of Chicago ShoreBank Standard Bank and Trust Company TCF National Bank IL The Northern Trust Company U.S. Bank, N.A. CICNC AF Bank Alamance Bank Alliance Bank & Trust American National Bank & Trust Co. Anson Bank & Trust Asheville Savings Bank, SSB Bank of America Bank of Asheville Bank of Granite Bank of North Carolina Bank of Oak Ridge Bank of Stanly Bank of the Carolinas Bank of Wilmington Belmont Federal Savings Blue Ridge Savings Bank Branch Banking and Trust Capital Bank Cardinal State Bank Carolina Bank Carolina First Bank Carolina Trust Bank Catawba Valley Bank Cherryville Federal Savings Citizens South Bank Coastal Federal Bank Community National Bank Cooperative Bank Cornerstone Bank Crescent State Bank 1st State Bank F& M Bank Atlanta Federal Home Loan Bank Fidelity Bank First Bank First Carolina State Bank First Charter Bank First Citizens Bank First Community Bank, N.A. First Federal First Federal Bank First Federal Savings Bank First Gaston Bank First National Bank First National Bank of Shelby First National Bank & Trust Co. First Savings & Loan First South Bank FNB Southeast Four Oaks Bank & Trust Gateway Bank & Trust Co. Gibsonville Community Bank Greystone Bank Harrington Bank Hertford Savings Bank, SSB High Point Bank & Trust Company Highlands Union Bank Home Savings Bank, SSB Home Savings Bank, SSB HomeTrust Bank 21 MEMBER BANKS Industrial Federal Savings Bank Jackson Savings Bank, SSB KS Bank Lexington State Bank Longleaf Community Bank Lumbee Guaranty Bank Macon Bank Mechanics and Farmers Bank MidCarolina Ban Millennia Community Bank Mooresville Savings Bank, SSB Morganton Federal Savings Mount Gilead Savings Mountain 1st Bank & Trust Mountain National Bank Mutual Community Savings Bank, SSB New Century Bank NewDominion Bank North State Bank Paragon Commercial Bank Patrick Henry National Bank Peoples Bank Peoples National Bank Piedmont Federal Savings Port City Capital Bank Progressive State Bank Randolph Bank & Trust RBC Centura Banks Regions Bank Roanoke Rapids Savings Bank, SSB Roanoke Valley Savings Bank, SSB Roxboro Savings Bank, SSB Security Savings Bank, SSB Select Bank & Trust Shelby Savings Bank Sound Bank Southern Bank & Trust Co. Southern Community Bank and Trust SterlingSouth Bank & Trust Co. SunTrust Bank Tarboro Savings Bank, SSB Taylorsville Savings Bank, SSB The Bank of Currituck The East Carolina Bank The Heritage Bank The Little Bank The Scottish Bank Trinity Bank TriStone Community Bank Tryon Federal Bank Union Bank & Trust (Proposed) U.S. Trust Company, N. A. Waccamaw Bank Wachovia Bank Wake Forest Federal Savings Yadkin Valley Bank & Trust FCP AmSouth Bank of Florida Banco Popular, North America, N.A. Bank of America Bank First BB&T CNL Bank Colonial Bank Federal Trust Bank Fifth-Third Bank First National Bank of Central Florida Florida Bank of Commerce Mercantile Bank RBC Centura Regions Bank RG-Crown Bank, FSB South Trust Bank, N.A. SunTrust Bank, Central Florida, N.A. Wachovia Bank, N.A. Washington Mutual GAHC BB&T Coastal Bank First American Bank & Trust First National Bank of Griffin Habersham Bank Hometown Bank of Villa Rica Net Bank PAB BankShares SunTrust Bank Synovus Financial Corp. United Community Banks HCRC American Savings Bank Bank of Hawaii Bank of the Orient Central Pacific Bank Finance Factors, Limited First Hawaiian Bank Hawaii National Bank HomeStreet Bank ICRC American West Bank Bank of America Idaho, N.A. Bank of Commerce 22 MEMBER BANKS Bank of Idaho Bank of the West Banner Bank D.L. Evans Bank Farmers & Merchants State Bank FirstBank, Northwest Home Federal Savings Idaho Independent Bank Ireland Bank KeyBank National Association Sterling Savings Bank U.S. Bank National Association Washington Federal Savings Washington Mutual Bank Washington Trust Bank Wells Fargo Bank Northwest, N.A. NLP American Enterprise Bank AmSouth Bank Atlantic Coast Federal Bank BAC Florida Bank Banco Popular North America Bank of Commerce Bank of Florida - Southwest Florida Bank of Florida - Tampa Bay Bank of St. Petersburg Bank of Tampa BankAtlantic BankUnited, FSB Bay Cities Bank Bay Financial Savings Bank BB&T Bank Capital City Bank Citizens First Bank Citrus Bank City National Bank CNL Bank Coast Bank of Florida Coconut Grove Bank Colonial Bank, N.A. Commercebank, N.A. Commercial Bank of Florida Continental National Bank of Miami Cornerstone Community Bank Crown Bank Eagle National Bank Eastern National Bank Enterprise Nat’l Bank of Palm Beach Espirito Santo Bank Eurobank EverBank of Florida Fifth Third Bank First Bank Florida First Citrus Bank First Commercial Bank of Tampa Bay First Community Bank of America First Guaranty Bank and Trust First Gulf Bank First Home Bank First Kensington Bank First National Bank of South Miami First Southern Bank Florida Capital Bank Florida Savings Bank Franklin Templeton Bank & Trust, FSB Gibraltar Bank Gold Bank Harris Bank Helm Bank Hemisphere National Bank, The Intercredit Bank, N.A. International Bank of Miami Intervest National Bank IronStone Bank Mellon Bank Mercantile Bank Metro Bank of Dade County Northern Trust Bank of Florida Ocean Bank Old Harbor Bank Optimum Bank Pacific National Bank Park Avenue Bank Pilot Bank Plus International Bank Prosperity Bank Raymond James Bank, FSB RBC Centura Bank/Provident Regent Bank Regions Bank Riverside National Bank Signature Bank Southern Commerce Bank Sun American Bank SunTrust Bank Synovus Bank TotalBank TransAtlantic Bank Union Credit Bank 23 MEMBER BANKS NOAH Bank of America Bank of Astoria Bank of the Cascades Bank of the West Banner Bank Clackamas County Bank Columbia River Banking Co. HSBC Bank USA, National Association KeyBank N.A. Liberty Bank Oregon Pacific Banking Pacific Continental Bank Riverview Community Bank Siuslaw Bank Umpqua Bank Union Bank of California US Bank US Trust Company, N.A. Washington Mutual Bank Wells Fargo Bank West Coast Bank UCRC Advanta Bank Corporation American Express Bank, FSB American Express Centurion Bank Bank of American Fork Bank of the West Barnes Banking Company Central Bank CIT Bank Exante Bank, Inc. Frontier Bank, FSB GE Money Bank GE Capital Financial, Inc. GMAC Automotive Bank Heritage Bank Irwin Union Bank, FSB JPMorgan Chase Bank, N.A . KeyBank NA LCA Bank Corp. Medallion Bank Merrick Bank Merrill Lynch Bank USA Morgan Stanley Bank Republic Bank, Inc. State Bank of Southern Utah The Pitney Bowes Bank, Inc. Transportation Alliance Bank, Inc. UBS Bank USA US Bank Volkswagen Bank USA Washington Federal Savings Washington Mutual Bank FSB WebBank Wells Fargo Bank Northwest, N.A. Wright Express Financial Services Corp. Zions First National Bank WCRA American Marine Bank AmericanWest Bank Anchor Bank Bank of America Bank of the Pacific Bank of The West Banner Bank Cascade Bank Cashmere Valley Bank Charter Bank City Bank Columbia Bank Columbia River Bank The Commerce Bank of Washington, N.A. Cowlitz Bank Evergreen Bank First Federal S&L Assn. of Port Angeles First Mutual Bank Frontier Bank Heritage Bank Homestreet Bank Horizon Bank Key Bank Northern Trust Bank Olympia Federal S&L Assn. Rainier Pacific Bank Redmond National Bank Riverview Community Bank Skagit State Bank Sterling Savings Bank Timberland Bank Union Bank of California U.S. Bank Washington Federal Savings Washington First International Bank Washington Mutual Bank Washington Trust Bank Wells Fargo Bank West Coast Bank Whidbey Island Bank Yakima Federal S&L Assn. 24 ARCH Alabama Multifamily Loan Consortium 534 Adams Avenue Montgomery, AL 36104-4334 Phone: 334-265-7156 Fax: 334-265-7165 ARCH MEMBERS Massachusetts Housing Investment Corporation 70 Federal Street, 6th Floor Boston, MA 02110 Phone: 617-850-1000 Fax: 617-850-1100 3615 West Spruce Street Tampa, Florida 33607 Phone: 813-879-4525 Fax: 813-873-9767 Community Investment Corporation 222 South Riverside Plaza, Suite 2200 Chicago, IL 60606 Phone: 312-258-0070 Fax: 312-258-8888 225 West Broadway, Suite #120 Glendale, CA 91204 Phone: 818-550-9800 Fax: 818-550-9806 Neighborhood Lending Partners, Inc. California Community Reinvestment Corp. Network for Oregon Affordable Housing 1020 S.W. Taylor Street, Suite #585 Portland, OR 97205 Phone: 503-223-3211 Fax: 503-223-0663 Florida Community Partners 2715 W. Fairbanks Avenue, Suite 200 Winter Park, FL 32789 Phone: 407-898-1661 Fax: 407-898-1414 North Carolina Community Investment Corporation P.O. Box 19999 Raleigh, NC 27619 Phone: 800-662-7044 Fax: 919-881-9909 Georgia Affordable Housing Corporation 1475 Peachtree Street, N.E. Atlanta, GA 30309 Phone: 800-536-9650 x8237 Fax: 404-888-8018 Utah Community Reinvestment Corporation 475 East 200 South, Suite 120 Salt Lake City, UT 84111 Phone: 801-366-0400 Fax: 801-366-0402 1200 Fifth Avenue, Suite 1406 Seattle, WA 98111-2609 Phone: 206-292-2922 Fax: 206-292-0782 Hawaii Community Reinvestment Corporation Pauahi Tower, Suite 2395 - 1001 Bishop Street Honolulu, HI 96813 Phone: 808-532-3110 Fax: 808-524-1069 5105 North Watersedge Avenue Boise, ID 83703 Phone: 208-853-2431 Fax: 208-853-3448 Washington Community Reinvestment Assoc. Idaho Community Reinvestment Corporation The Association of Reinvestment Consortia for Housing ARCH