The San Francisco Housing Accelerator Fund (SFHAF) received a $100 million commitment from First Republic Bank for a revolving credit facility to support the preservation of affordable housing in San Francisco through SFHAF’s anti-displacement lending program.
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.
“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 five years, creating permanently affordable homes for more than 3,000 residents in San Francisco.
