The $9 million loan pool created by Housing Trust Silicon Valley brings eight financial institutions together to increase affordable rentals in the region.
San Jose, Calif. (June 13, 2013) — Tech CU announced today it will be the only credit union among seven banks in the region participating in the first-ever affordable housing loan pool created by Housing Trust Silicon Valley. This $9 million fund provides from $500,000 to $2 million in initial startup financing to developers working on affordable, multi-family housing projects throughout the Bay Area.
The pool is part of the Trust’s Multifamily Lending Program and is a revolving, self-sustaining fund. Once a development project is financed for construction, the loan is paid back to the fund, thus ensuring more startup financing for future projects. Over the next five years, it’s projected the program will help finance 24 developments — creating 1,800 permanently affordable rentals for low income working families, seniors and others with special needs.
“Many in the Bay Area are challenged by the region’s higher-than-average housing costs,” said Tech CU President and CEO Barbara Kamm. “We’re committed to supporting our members by offering low rates on mortgage and home equity loans, as well as lower fees. In addition, we support increasing the amount of affordable housing in the area, which is why we’re partnering with the Housing Trust Silicon Valley.”
Tech CU is very proud to be the first credit union in the U.S. to participate in a loan pool of this type. Seven Bay Area banks have also invested, including Bridge Bank, East West Bank, First Bank, Heritage Bank of Commerce, Manufacturers Bank, One Pacific Coast Bank, and Silicon Valley Bank.
“We need financial partners like Tech CU to help make these kinds of initiatives possible,” said Kevin Zwick, CEO of the Housing Trust, “The Multifamily Lending Program will be the catalyst to help jump-start projects by providing critical pre-development and acquisition financing towards the creation or renovation of affordable multifamily rentals in Santa Clara, San Mateo, San Francisco, and Alameda counties.”
More information can be found at the Housing Trust Silicon Valley web site, www.housingtrustsv.org.
ABOUT TECHNOLOGY CREDIT UNION
Founded in 1960 by the employees of Fairchild Camera and Instrument Semiconductor Division, Tech CU has served the high tech workforce in Silicon Valley for more than 50 years. Today, Tech CU is one of largest credit unions in the country with 69,000 individual and business members and more than $1.7 billion in assets. The financial institution is recognized as one of the best managed and strongest in the country. Tech CU’s members have access to 65,000+ surcharge-free ATMs nationwide, online and mobile banking, 10 full-service branches throughout the Bay Area, and comprehensive mortgage, wealth management and small business services.
ABOUT HOUSING TRUST SILICON VALLEY
Our mission is to make Silicon Valley a more affordable place to live. The Housing Trust makes loans to increase the supply of affordable housing, assist first-time homebuyers and stabilize neighborhoods, and provide grants to prevent homelessness. Among the largest housing trusts in the nation, we are nationally recognized for providing the resources and leadership to meet the pressing needs of average working families in Silicon Valley.
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