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T he P ori land O bserver • J uly 31,1996
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9.8 million awarded in grants
The Federal Home Loan Bank o f
San Francisco has awarded $9.8
million to 61 housing programs to
help create over 2,600 new units of
affordable housing in Arizona, Cal­
ifornia, Florida, Nevada, and New
Jersey.
“The outstanding projects sub­
mitted in this round o f the Afford­
able Housing Program address one
o f the thorniest issues in housing:
creating homeownership opportu­
nities for people who have typically
not had those opportunities, includ­
ing low-income households. Native
Americans, people with develop­
mental disabilities, and single-par­
ent families,” said Dean Schultz,
president and chief executive offic­
er o f the Federal Home Loan Bank
of San Francisco. “T hese aw ard ­
winning initiatives also address the
growing demand for decent, afford­
able rental housing designed to meet
the needs o f at-risk populations,
such as homeless people, seniors,
and mentally or physically disabled
individuals. These projects not only
pros ide housing, but bring new hope
to residents and homebuyers and
build sustainable communities in
the process.”
Over 83% percent o f the units
will be reserved for individuals and
families that earn less than 50 per­
cent o f the median income for the
area in which they live, while the
remaining units will serve house­
holds earning up to 80 percent o f
area median income.
The following California commu­
nities will benefit from the grants
announced today: Alameda County,
Berkeley, C astro Valley, Chico,
Chirla Vista, Concord, Daly City,
Davis, Fremont, Fresno, H alf Moon
Bay, Indio, Los Angeles, Marin
County, Marysville, Mountain View,
Napa, Oakland, Orland, Panorama
City, Pasadena, Petaluma, Pittsburg.
Pleasant Hill. Sacramento, Salinas,
San Diego, San Francisco, San Jose,
Santa Monica. Santa Rosa, Scotts
Valley, Soledad, Trinity County,
Watsonville, and Yuba City In Ari­
zona. five projects will benefit com­
munities in Phoenix, Tucson, and the
Arizona portion o f the Navajo Na­
tion. Winning projects are also locat­
ed in Sparks. Nevada; Miami. Flori­
da. and in several towns in New
Jersey.
I'he 61 winning projects will le­
verage approximately $263 million
in total development costs. Since the
first round of the Bank’s Affordable
Housing Program in 1990. the Bank
and its shareholders have committed
$94 million to 5 15 housing programs,
supportingthecreationofover 23,000
units o f affordable housing.
The Federal Home Loan Bank of
San Francisco's Affordable Housing
Program provides grants to projects
that address community needs in cre­
ative ways and that make the most
effective use o f the money. The funds
are derived from the Bank's net earn­
ings, which would otherwise be paid
as dividends to shareholders. In ef­
fect. Bank members forgo 10 per­
cent or more o f their earnings on
Bank stock to support these projects.
Each competing project must be
sponsored by a financial institution
that is a member o f the Bank, usu­
ally in conjunction with a commu­
nity-based affordable housing spon­
sor. " I'he Bank's mission is to help
community-oriented lenders make
housing more accessible and more
affordable,"said Mr Schultz "Our
shareholders have made lending in
low-and moderate-income neigh­
borhoods a significant part o f their
every day business, and they rely on
us to provide them with low-cost
funding when they need it The
Affordable I lousing Program makes
it possible for our shareholders to
reach those with even greater need
and fosters enduring relationships
between lendersandcommunity or­
ganizations, helping to revitalize
neighborhoods and sustain healthy
communities."
I lie Federal Home Loan Bank of
San F rancisco promotes housing and
homeownership by expanding the
supply and reducing the cost of mort­
gage credit. The Bank serves and is
owned by commercial banks, credit
unions.sa 379077
and loan associations headquartered
in Arizona, California and Nevada.
As o f December 3 1, 1995. the Bank
had 178 shareholders. With $50 bil­
lion in assets, the Bank is the largest
o f the 12 banks in the Federal I lome
Loan Bank System.
Top twenty home markets
A report issued by TRW REDI
Property Data, a nationwide real es­
tate information company, shows that
more than $56 billion worth of new
homes were sold in the nation’s ma­
jo r metropolitan areas during 1995.
In a study o f more than 200 metro­
politan counties covering 30 states,
TRW REDI found that Phoenix,
where 1995 sales amounted to $3.2
billion, is the largest new home mar­
ket in the country .
It was followed by Las Vegas,
20 Most Active New
Home Markets By
Sale Value (1995)
C ounty
State
Maricopa
Ariz.
Clark
Nev.
Orange
Calif.
Broward
1 la
Harris
Texas
San Diego
Calif.
Fairfax
Va.
Los Angeles
Calif.
Cook
Ill
Collin
Texas
Gwinnett
Ga
Tarrant
Texas
Dade
Fla.
Riverside
Calif.
Bexar
Texas
Dallas
Texas
Palm Beach
Fla
King
Wash.
Montgomery Md.
Contra Costa C alif
Total Market Area........ ..
IMillioi
3,210
2.020
1,614
1.157
1.126
1.077
1.072
1.071
1.053
972
846
841
770
729
703
696
696
685
658
650
56,404
where 1995 sales reached more than
$2 billion. Demand for new homes
in both o f these markets has been
fueled by high population growth
rates as well as appreciating home
values.
TRW REDI’s figures, which are
based on recorded deeds, show that
the largest markets for home builders
are the so-called "sun-belt" states:
Arizona, Nevada, California, Flori­
da and Texas. There are, however, a
number o f metropolitan areas out­
side o f these states that rank high in
the study. Fairfax County, Va.;Cook
County. III.; and Gwinnett County,
Ga.. all rank among the top 20 metro­
politan areas.
I he study also shows that despite
Southern California's recent econom­
ic and housing woes, the region re-
mains one o f the largest markets for
new homes. Orange County, ranks
third with sales o f more than $ 1 6
billion in 1995 Sales in Los Angeles
reached slightly above $ 1 0 billion,
putting the county in the eighth posi­
tion.
IRW REDI’s ranking of the most
expensive new homes by county re­
veals that in the Northern California i
counties o f San Mateo
and Santa Clara, prices are 80
percent more than the average for the
study area. In Westchester County.
N.Y.. typical cost of a new home is
$293.000 compared to $170,000
overall average lor the major metro­
politan areas
Most affordable markets are con­
centrated in Florida' central and
northern regions where prices are 40
percent lower than the overall aver­
age.
10 Most Affordable
New Home Markets
(1995)
10 Most Expensive
New Home Markets
(1995)
( o u n tv
S tate Ay.Priyç
Mohave
Ariz. 79,893
Baltimore City Md.
84,212
Marion
Fla.
86.453
97.099
Osceola
Fla.
Lake
Fla
97,933
Polk
98,639
1 la
Escambia
Fla.
99,114
Santa Rosa
Fla
100,610
Sumter
1 la
104,833
Madera
Calif. 106,525
Brevard
Fla.
106,973
El Paso
Texas 107,132
Total Market treu
170,340
( o u n tv
State
San Mateo
Calif
Santa Clara
C alif
N.J
Somerset
Westchester
NY
Alameda
Calif.
Bergen
N.J.
Fairfield
Conn.
Hunterdon
N.J.
Montgomery Md
Fulton
Ga.
Total Market 4 rea.....
A v.Price
317,326
307.249
297,797
293,480
291,642
285,641
276.285
262,392
253,705
250,432
. 170.340
Lockins effect on mortgage
Every consumer realizes that loan
rates are one p f several central con­
siderations when evaluating loan
choices. We each want the lowest
possible financing costs and interest
rates, generally expressed ¿is the "A n­
nual Percentage Rate" or "APR
In looking at rates, however, bor­
rowers should also consider lock-in
terms. If lender Smith offers financ­
ing at 9 percent and lender Jones has
‘AAA’ (or Norwest
The Norwesi Asset Securities Co..
Inc.’s (NASCOR) $408.9 million
Mortgage Pass-Through Certificates.
Series 1996-1, class A, except A-7. ai e
rated ‘AAA’ by Fitch Investors Ser­
vice.
The rating on class A senior certif­
icates reflects the credit enhancement
provided by the 6% subordinate Class
Bcertificates. Fitch belie vestheamount
of credit enhancement will be- suffi­
cient to cover credit losses, including
limited bankruptcy, fraud anil special
hazard losses. The rating also reflects
the high quality of the underlying col­
lateral. the integrity of the legal and
financial structures ami the servicing
capabilities of affiliate Norwesi Mon
gage, Inc.
The mortgage pixil consists of re­
cently originated, conventional. 2(F to
30-year, fixed-rate mortgage loans s e ­
cured by one-lo- four fam 11 v resident ml
pmpert ies located pi i man ly inCal i foi
nia.
Ihe same loan at 8.75 percent, then
the Jones loan seems better.
I'he catch is that lender Smith may
oiler to lock-111 rates for 30 day s or 60
days. II lender Jones only offers a 10-
dav lock, the lower rale — while
enticing — may be a marketplace
illusion. Yes. lender Jones will pro­
vide the lower rate if you can close in
IO days.
But. realistically, can you settle in
such a short period? If not, the Jones
quote holds no value because it is not
actionable.
Even if you haven't
SAVED A LOT
for a home,
you’ve probably saved
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OU
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It’s not easy saving up to buy a home
these days. But with the FHA, it
isn’t as hard as you'd thinly. Because
with an FH A loan, you could get
into a home of your own with a down
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