March 9, 1998

Federal Home Loan Bank of Seattle and Community-Based Lenders
Support Affordable Housing for 7,831 Families in 1997

Seattle -- Partnerships between the Federal Home Loan Bank of Seattle and community-based financial institutions across the region are helping thousands of people find homes they can afford. In 1997, these partnerships benefited 7,831 families and individuals in Alaska, Hawaii, Idaho, Montana, Oregon, Utah, Washington and Wyoming.

The Federal Home Loan Bank of Seattle’s activities in 1997 are chronicled in its Annual Report of Affordable Housing and Community Lending Initiatives. Last year, through its community lending programs, the Seattle Bank provided more than $223 million in grants and reduced-rate loans to aid financial institutions’ efforts to fund affordable housing and community development. In the last eight years, the Seattle Bank has provided nearly $1.2 billion to help more than 40,000 families and individuals find affordable homes and living-wage jobs.

“These numbers demonstrate the significant impact of these programs in our region,” explains James R. Faulstich, president and chief executive officer of the Seattle Bank. “Just as significant are the lasting partnerships among lenders, nonprofit organizations and governments fostered by these programs. The leadership and vision of financial institutions in building these partnerships for housing and jobs in their communities has brought hope and opportunity to thousands of people.”

Following are the key results of the Federal Home Loan Bank of Seattle’s programs in 1997:

The Affordable Housing Program (AHP)
The Seattle Bank awarded $9.8 million in AHP grants to lenders, helping 2,666 families and individuals find affordable homes.

Home$tart Savings Program
$1.9 million in funds were committed to assist 364 families with downpayment assistance to buy their first homes.

The Community Investment Program (CIP)
The Seattle Bank provided nearly $213 million in reduced-rate loans, helping financial institutions fund affordable housing for more than 4,000 families and support economic development initiatives in their communities.

The Challenge Fund
The Seattle Bank awarded $177,500 in predevelopment grants to financial institutions to help affordable housing projects, still in the early stages, to succeed. Nearly 800 families and individuals will benefit from these funds.

AHP Regional Priority
The Seattle Bank designated mixed-income, mixed-use housing as the AHP priority in 1997. Proposals that met the criteria received additional points in the application scoring process. During the year, the program supported 16 mixed-income, mixed-use developments which combine affordable and market-rate housing and/or commercial space in one development. These projects are economically prudent because the income from the market-rate housing or commercial businesses helps cover the cost of the affordable housing. The blend of household incomes also helps produce a stable, diverse and economically integrated neighborhood.

Home$tart Plus Pilot
In 1997, the Seattle Bank developed a pilot program in the Seattle area to help working families in public housing move into homeownership through a system of savings incentives and downpayment assistance. The success of the Home$tart Plus pilot prompted the Seattle Bank to make families receiving public housing assistance eligible for downpayment assistance through the Home$tart Savings Program in 1998.

The Federal Home Loan Bank of Seattle’s mission is to expand housing and economic opportunities in the region by providing funding and other banking services essential to community-based financial institutions. One of 12 Federal Home Loan Banks in the nation, the Seattle Bank serves more than 290 financial institutions in Alaska, Guam, Hawaii, Idaho, Montana, Oregon, Utah, Washington and Wyoming. The Seattle Bank is privately owned and managed, and has total assets of $29 billion.