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FEDERAL HOUSING FINANCE BOARD ANNOUNCES AVAILABILITY OF $600 MILLION IN COMMUNITY INVESTMENT CREDIT FOR LOS ANGELES

 FEDERAL HOUSING FINANCE BOARD ANNOUNCES AVAILABILITY
 OF $600 MILLION IN COMMUNITY INVESTMENT CREDIT FOR LOS ANGELES
 WASHINGTON, May 13 /PRNewswire/ -- The Federal Housing Finance Board today announced the Federal Home Loan Bank System will make $600 million available in community rebuilding funds for South-Central Los Angeles and other areas affected by the rioting.
 Daniel F. Evans Jr., finance board chairman stated, "The Bank System was formed in response to the housing crisis created by the Depression. The current needs of the people of South-Central Los Angeles cry out for an equally determined response."
 The Bank System is committed to housing finance throughout the nation. It has the flexibility to meet the housing and economic development needs of low-income and minority communities.
 The Federal Home Loan Bank of San Francisco will act as the lead bank for the 12 district banks that compose the bank system, a government-sponsored enterprise. The $600 million earmarked for this purpose may vary according to actual demand and may be more or less dependent on the amount of direct financing or other subsidy programs used.
 In addition, the bank system's Affordable Housing Program (AHP) is providing subsidized loans to further assist low- and moderate- income families in Los Angeles. Presently, $1 million in AHP subsidy is leveraging $22.5 million to provide 206 housing units for such families. The finance board will now expedite processing of new AHP applications for Los Angeles. There are currently pending 12 AHP project applications that could provide $3 million of subsidy, which could leverage up to $60 million in additional low- and moderate- income housing finance in the area.
 The Community Investment Program (CIP) provides loans through Bank System members for community-oriented mortgage lending such as:
 -- financing the purchase or rehabilitation of owner-occupied or
 rental housing for families whose income does not exceed 115
 percent of an area's median income.
 -- financing commercial or economic development activities that
 benefit low- and moderate-income families or activities
 located in low- and moderate-income neighborhoods.
 -- combining housing and commercial or economic development
 activities.
 CIP advances are provided to Bank System member financial institutions at the cost of consolidated FHLBank obligations, plus reasonable administrative costs. In 1991 nearly $1 billion of CIP advances were used to finance 29,000 housing units.
 The Affordable Housing Program subsidy funds are used to finance the following:
 -- homeownership by families with incomes at or below 80 percent
 of the median income for the area; or
 -- the purchase, construction, or rehabilitation of rental
 housing, at least 20 percent of the units of which will be
 occupied by and affordable for very low-income households for
 the remaining useful life of such housing or the mortgage
 term.
 Since the AHP's inception two years ago, close to $150 million in subsidies have been contributed by the Bank System. With leveraging, that's more than $2 billion of development and 43,500 housing units.
 -0- 5/13/92
 /CONTACT: Charles H. Powers of the Federal Housing Finance Board, 202-408-2986/ CO: Federal Housing Finance Board ST: District of Columbia, California IN: FIN SU:


KD-DC -- DC025 -- 9836 05/13/92 15:24 EDT
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Publication:PR Newswire
Date:May 13, 1992
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