BANKING / FINANCE : 2 Low-Cost Housing Projects Win Grants in Federal Program
Two low-cost housing projects in Orange County won a financial boost in the second round of grants from a special federal subsidy program for the savings and loan industry.
The projects are among 33 for which California thrifts garnered $9.05 million in S&L; grants from the Federal Home Loan Bank in San Francisco, one of 12 regional banks in the federal system that provides credit to thrifts.
The regional bank awarded $12.1 million in aid to thrifts in July and will provide 5% of its net income in each of the next two years to assist thrifts in the construction and purchase or rental of affordable housing. The program is mandated by the 1989 federal law that restructured the S&L; industry.
ITT Federal Bank in Irvine, which picked up funds in July for a condominium project in Irvine, was awarded a $24,544 subsidy to help very-low-income adults recovering from mental illness purchase four to six single-family homes in Anaheim for shared living quarters. The project is sponsored by Helping Our Mentally Ill Experience Success Inc. in Santa Ana.
Two other thrifts, California Federal Bank in Glendale and Long Beach Bank, were awarded $663,254 to subsidize 50 mortgages for low-income families in Anaheim, Garden Grove and Santa Ana. The three cities are sponsoring the effort through the Orange County Community Home Buyers Program.
In addition, Downey Savings & Loan in Newport Beach was awarded a $261,562 subsidy for a revolving loan fund to provide gap loans to nonprofit housing and development corporations throughout the state. The 10-year project, sponsored by the Low Income Housing Fund in San Francisco, is expected to provide 1,365 low-income housing units, including 683 homes for those with very low incomes.
Two other county S&Ls;, American Savings Bank in Irvine and Household Bank in Newport Beach, are part of a 32-thrift consortium called Savings Assns. Mortgage Co. in Santa Clara that won $1.5 million to subsidize about 900 low-income and 600 very-low-income units throughout the state.
The San Francisco district bank is funding the lion’s share of the nation’s affordable housing projects. This year its subsidies amounted to nearly 27% of the $78.8 million provided by all 12 district banks. Its second-round awards will be used to provide 4,672 housing units.
