CORRECTING and REPLACING Homestead Capital Raises $30 Million from Community Banks for Affordable Housing in Washington.

Business Editors

CORRECTION...by Homestead Capital

PORTLAND, Ore.--(BUSINESS WIRE)--Sept. 8, 2003

Please replace BW5372, (OR-HOMESTEAD-CAPITAL-2) Homestead Capital Raises $30 Million, with the following revised release.

The corrected release reads:

HOMESTEAD CAPITAL RAISES OVER $30 MILLION FROM COMMUNITY BANKS FOR AFFORDABLE HOUSING IN WASHINGTON

Moving aggressively to address the affordable housing shortage in the state of Washington, Homestead Capital has announced that its latest equity funds raised over $30 million in capital from Washington-based investors.

These funds will be used in conjunction with other Homestead equity funds to support affordable housing projects in Washington communities.

Homestead Capital is a nonprofit syndicator that forms investment partnerships with major corporations, reinvests the capital it raises in high-quality affordable housing projects, and delivers tax credits to the investors. Homestead Capital works with communities to identify needs and then brings together investors and developers who wish to participate in the tax credit program, which was created by Congress in 1986 to provide incentives for private investment in multi-family affordable housing projects.

Washington-based investors who participated in Homestead Capital's special initiative to attract community banks, include:

-- Washington Federal Savings 

-- Banner Bank 

-- Sterling Savings Bank 

-- Columbia Bank

-- Pacific Northwest Bank

-- Cashmere Valley Bank

-- Washington First International Bank

-- American Marine Bank

-- Cowlitz Bancorporation

-- The Commerce Bank of Washington

-- Bank of the Pacific

"We are grateful to the community banks who participated in this fund," says Deborah Saweuyer-Parks, president and CEO of Homestead Capital. "They share our commitment to providing housing for people who struggle to afford a decent place to live. Our equity funds give these banks an opportunity to invest in communities close to home."

Homestead Capital also recently closed a similar community bank fund in Oregon that raised $10.5 million. In the fiscal year ending June 30, 2003, Homestead Capital raised a total of $75 million in tax credit equity investments.

Since it was established in 1993, Homestead Capital has raised almost $250 million to fund approximately 2500 units of affordable housing for low-income families in the Pacific Northwest. Its portfolio reflects the diversity of housing needs in the region and includes urban high-rises in Seattle and Portland, cottage-style apartments in dozens of small towns, high quality family housing for agricultural workers in Central and Eastern Washington, and mixed use projects for Main Street revitalization.

Unlike many for-profit tax credit syndicators, Homestead Capital has been enthusiastic about helping to fund smaller scale projects located in remote communities in addition to its demonstrated equity expertise in larger, urban communities.

Homestead Capital is headquartered in Portland, Oregon. For more information, call 503-276-1555 or visit Homestead Capital on the web at www.homesteadcap.com.