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Press > Press Releases > NFH/SALT Receive $500,000 Wells Fargo EQ2 Loan

NFH/SALT Receive $500,000 Wells Fargo EQ2 Loan

Wells Fargo invests $1,300,000 in Marin County non-profits to help bring affordable housing to families

 [Marin County, Calif., June 22, 2010] – Wells Fargo & Company (WFC) announced two equity-equivalent investments (EQ2s) in Marin County made to two non-profits to help increase the supply of affordable housing for local residents. Both investments involve the Marin Community Foundation, one of the largest community foundations in the country. 

The first EQ2, for $800,000, was provided to Marin Community Foundation (MCF) to bolster its loan program that provides funding to affordable housing developers targeting families with incomes ranging from 30 percent to 60 percent of the area median income (AMI).   Well Fargo is taking a leadership role by providing the MCF loan fund’s first external capital infusion, with the hope that other institutional investors will consider supporting MCF in the future. 

“We are tremendously grateful for this infusion of capital to help develop affordable housing in Marin,” said Marin Community Foundation President Thomas Peters. “Through the generosity of Wells Fargo, more low-income individuals and families will be able to live affordably, safely, and with dignity. This is often the linchpin of long-term economic stability. We look forward to using these resources to support efforts that make Marin a better place, for everyone.”

 Wells Fargo made a second, $500,000 EQ2 to co-borrowers Northbay Family Homes (NFH) and Suburban Alternatives Land Trust (SALT), both Marin County-based non-profits that work together to develop affordable housing properties.  This EQ2 will be used alongside significant grant funds from the Marin Community Foundation and Pacific Gas & Electric to acquire, rehabilitate, and sell 20 foreclosed properties to low- and moderate-income working families in Marin County over four years.  NFH/SALT will also deliver $15,000 of down payment assistance to each low income family purchasing a rehabbed REO home in Marin, under a $300,000 grant received from Federal Home Loan Bank of San Francisco’s Affordable Housing Program (FHLBSF).

“This investment comes at a critical moment,” said Pamela Asselmeier, Director of Special Projects at NFH.  “So many working families are excluded from homeownership in Marin.  We are grateful for this loan and for the recognition of NFH/SALT’s unique ability to address this inequity. When we envisioned this program, we knew we needed $2,000,000 to carry out our REO Homes for the Workforce Program.  This EQ2 loan kick starts our program, allowing us to initiate REO purchases in Marin.  We are energized at the prospect of transforming the foreclosure crisis into homeownership opportunities for local, low-income workforce buyers, with the help of Wells Fargo, MCF, PG&E and FHLBSF.” 

 “These EQ2s allow Wells Fargo to support local non-profits and leverage other funding commitments to provide much-needed affordable housing in one of the least affordable housing markets in the country,” said Megan Teare of Wells Fargo Community Lending and Investment. 

 About Marin Community Foundation

Marin Community Foundation’s mission is to encourage and apply philanthropic contributions to help improve the human condition, embrace diversity, promote a humane and democratic society, and enhance the community’s quality of life, now and for future generations. It is one of the largest community foundations in the U.S., with net assets of approximately $1 billion and annual grants of approximately $50 million.

 About Northbay Family Homes

NFH is a non-profit affordable housing corporation, founded in 1978 to facilitate affordable home ownership and rental opportunities in San Francisco’s North Bay, including Marin and Sonoma Counties. NFH provides consulting and financing to affordable housing developers and offers counseling services, brokerage services, and mortgage assistance to prospective low- and moderate-income homebuyers. During its 30 years, NFH has partnered with other affordable housing developers to complete over 40 projects with 4,000 homes, half of which have been for homeownership and half rental.

 About Suburban Alternatives Land Trust

SALT was established in 1998 by NFH as a separate non-profit to act as a permanent development partner.  SALT acquires properties, develops, sells and also holds them to provide affordable housing, jobs, recreation, agriculture, and open space.  SALT is general managing partner for three tax credit projects providing 425 low- and very low-income rentals in Marin and Sonoma Counties. As a land trust, SALT is also positioned to accept donated land and to purchase land for long-term hold.  In addition, SALT contracts with experienced consultants and affordable housing developers to complete real estate construction and rehabilitation.

 EQ2s are patient capital in the form of below-market-rate loans.  This limited resource is reserved for Well Fargo non-profit community development partners that are working to expand affordable housing, job creation, and economic development in the communities where Wells Fargo does business.

 About Wells Fargo
Wells Fargo’s Community Lending and Investment division provides debt and equity capital for economic development, job creation and affordable housing in areas of need nationwide.   For more about Wells Fargo Community Lending and Investment: www.wellsfargo.com/communitylendingandinvestment

 Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores and 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.  The Company promotes economic growth and self-sufficiency, education, social services, the arts and the environment in thousands of communities across North America.  In 2009, the Company gave $202 million in grants to 18,000 nonprofits, and team members contributed more than 1.2 million volunteer hours around the country.  For more about Wells Fargo’s achievements in Social Responsibility: www.wellsfargo.com/about/csr.

Media contact: Aynsley Wade, aynsley.wade1@wachovia.com ,704/715-2471.

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