Grant Program Eases Constraints for Affordable Housing Developers
October 02 2006 - 1:31PM
Business Wire
The Union Bank of California Foundation today announced the
beneficiaries of its �Cornerstone Awards,� a $685,000 grant program
founded in 2002 to fund emerging nonprofit housing developers in
California. This unique program, the only one of its kind in the
state, provides flexible operating grants and funding for technical
assistance to up-and-coming affordable homebuilders. Community
Housing Partnership in San Francisco, Wakeland Housing and
Development Corporation in San Diego and Rancho Housing Alliance in
Coachella will each receive $195,000 over a three-year period to
complete new affordable housing developments in their local areas.
An additional $100,000 is earmarked for day-to-day administration
and measurement of the program. �Five years ago, Union Bank was
looking for a strategic, effective and creative means to facilitate
the creation of affordable housing,� said Carl Ballton, president
and chief operating officer of Union Bank�s foundation. �We learned
that a lack of operating capital is one of the biggest hurdles new
developers must surmount to bring affordable units online�and that
was one of the issues that the bank�s foundation could address.�
According to Ballton, the first round of Cornerstone grants enabled
three developers to create 344 much-needed units of affordable
housing�119 more than originally anticipated�and move 484 more
units into predevelopment. �Based on the success of the first grant
recipients, we are very excited about the prospects for this new
group and the benefits they�ll be able to bring to their
communities.� About the winners: Community Housing Partnership (San
Francisco) � CHP was established in 1990 to help people overcome
homelessness through supportive housing. From 1990 to 1996, the
organization developed three projects that supported 29 families
and 192 individuals. CHP currently has three projects in its
pipeline�one rehabilitation and two new construction projects.
Together, they will create 213 units for single adults, families
and seniors. Once the developments are built, CHP provides property
management and on-site supportive services. Rancho Housing Alliance
(Coachella) � Rancho Housing Alliance focuses on three areas:
development and construction; resources to help families achieve
homeownership; and neighborhood services, such as immigration
assistance. The organization has a 15-member board comprised of
representatives from eight communities, two tribal reservations and
local governments. Rancho launched its first project in 2003 with
the construction and sale of four infill homes and a 120-home
subdivision and community park in Coachella. Projects in the
pipeline include 16 infill homes and a 48-bed migrant housing
facility with community center. The organization has other land
holdings that have been designated for subdivisions, parks,
retail/commercial centers and community facilities. Wakeland
Housing and Development Corporation (San Diego) � Wakeland was
established in 1999 with a focus on developing quality multi-family
affordable housing throughout San Diego County. Completed projects
include Vista Las Flores, a 28-unit development in Carlsbad; Beyer
Courtyards, a 60-unit family development in San Ysidro that
includes a children�s play area, basketball court and community
room; and Lillian Place, a 74-unit development that will open in
November 2008. In mid-September, Wakeland will begin rehabilitating
Del Sol Apartments, a 90-unit project in San Ysidro. Wakeland also
designs and implements programs to support residents of all ages,
including youth programs, adult education and senior programs. The
Cornerstone Award was developed by Union Bank of California and its
10-member Community Advisory Board, which plays an integral role in
helping the bank�s executive management identify the financial
needs of low-income and underserved communities. The recipients
were chosen in a competitive process from a pool of 22 entrants
from across the state. Each entrant had to meet specific
requirements, including the completion of at least one significant
affordable housing development, demonstration of need in the
applicant�s primary service area, and proof that the development
would have difficulty moving forward without additional funding.
According to the National Low Income Housing Coalition, the current
fair market rent for a two-bedroom home in California is $1,149. In
order to afford this without paying more than 30 percent of income
on housing, California households must earn $22.09 an hour, the
second highest �housing wage� in the country and almost three times
the minimum wage. There is not a single jurisdiction in the country
where a person working 40 hours a week, 52 weeks a year at the
prevailing minimum wage can afford a one-bedroom apartment.
Established in 1953, the Union Bank of California Foundation serves
as the agent for charitable contributions made by Union Bank of
California. Throughout its history, the foundation has represented
the bank�s investment and commitment to help meet the charitable
needs of the communities it serves. The bank�s community
development finance division provides financing and consultation
services to non-profit real estate developers, as well as local and
state housing authorities. Based in San Francisco, UnionBanCal
Corporation (NYSE:UB) is a bank holding company with assets of
$50.8 billion at June 30, 2006. Its primary subsidiary, Union Bank
of California, N.A., had 321 banking offices in California, Oregon
and Washington, and 2 international offices at June 30, 2006. The
company's Web site is located at www.unionbank.com. The Union Bank
of California Foundation today announced the beneficiaries of its
"Cornerstone Awards," a $685,000 grant program founded in 2002 to
fund emerging nonprofit housing developers in California. This
unique program, the only one of its kind in the state, provides
flexible operating grants and funding for technical assistance to
up-and-coming affordable homebuilders. Community Housing
Partnership in San Francisco, Wakeland Housing and Development
Corporation in San Diego and Rancho Housing Alliance in Coachella
will each receive $195,000 over a three-year period to complete new
affordable housing developments in their local areas. An additional
$100,000 is earmarked for day-to-day administration and measurement
of the program. "Five years ago, Union Bank was looking for a
strategic, effective and creative means to facilitate the creation
of affordable housing," said Carl Ballton, president and chief
operating officer of Union Bank's foundation. "We learned that a
lack of operating capital is one of the biggest hurdles new
developers must surmount to bring affordable units online--and that
was one of the issues that the bank's foundation could address."
According to Ballton, the first round of Cornerstone grants enabled
three developers to create 344 much-needed units of affordable
housing--119 more than originally anticipated--and move 484 more
units into predevelopment. "Based on the success of the first grant
recipients, we are very excited about the prospects for this new
group and the benefits they'll be able to bring to their
communities." About the winners: -- Community Housing Partnership
(San Francisco) - CHP was established in 1990 to help people
overcome homelessness through supportive housing. From 1990 to
1996, the organization developed three projects that supported 29
families and 192 individuals. CHP currently has three projects in
its pipeline--one rehabilitation and two new construction projects.
Together, they will create 213 units for single adults, families
and seniors. Once the developments are built, CHP provides property
management and on-site supportive services. -- Rancho Housing
Alliance (Coachella) - Rancho Housing Alliance focuses on three
areas: development and construction; resources to help families
achieve homeownership; and neighborhood services, such as
immigration assistance. The organization has a 15-member board
comprised of representatives from eight communities, two tribal
reservations and local governments. Rancho launched its first
project in 2003 with the construction and sale of four infill homes
and a 120-home subdivision and community park in Coachella.
Projects in the pipeline include 16 infill homes and a 48-bed
migrant housing facility with community center. The organization
has other land holdings that have been designated for subdivisions,
parks, retail/commercial centers and community facilities. --
Wakeland Housing and Development Corporation (San Diego) - Wakeland
was established in 1999 with a focus on developing quality
multi-family affordable housing throughout San Diego County.
Completed projects include Vista Las Flores, a 28-unit development
in Carlsbad; Beyer Courtyards, a 60-unit family development in San
Ysidro that includes a children's play area, basketball court and
community room; and Lillian Place, a 74-unit development that will
open in November 2008. In mid-September, Wakeland will begin
rehabilitating Del Sol Apartments, a 90-unit project in San Ysidro.
Wakeland also designs and implements programs to support residents
of all ages, including youth programs, adult education and senior
programs. The Cornerstone Award was developed by Union Bank of
California and its 10-member Community Advisory Board, which plays
an integral role in helping the bank's executive management
identify the financial needs of low-income and underserved
communities. The recipients were chosen in a competitive process
from a pool of 22 entrants from across the state. Each entrant had
to meet specific requirements, including the completion of at least
one significant affordable housing development, demonstration of
need in the applicant's primary service area, and proof that the
development would have difficulty moving forward without additional
funding. According to the National Low Income Housing Coalition,
the current fair market rent for a two-bedroom home in California
is $1,149. In order to afford this without paying more than 30
percent of income on housing, California households must earn
$22.09 an hour, the second highest "housing wage" in the country
and almost three times the minimum wage. There is not a single
jurisdiction in the country where a person working 40 hours a week,
52 weeks a year at the prevailing minimum wage can afford a
one-bedroom apartment. Established in 1953, the Union Bank of
California Foundation serves as the agent for charitable
contributions made by Union Bank of California. Throughout its
history, the foundation has represented the bank's investment and
commitment to help meet the charitable needs of the communities it
serves. The bank's community development finance division provides
financing and consultation services to non-profit real estate
developers, as well as local and state housing authorities. Based
in San Francisco, UnionBanCal Corporation (NYSE:UB) is a bank
holding company with assets of $50.8 billion at June 30, 2006. Its
primary subsidiary, Union Bank of California, N.A., had 321 banking
offices in California, Oregon and Washington, and 2 international
offices at June 30, 2006. The company's Web site is located at
www.unionbank.com.
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