Tri Counties Bank and FHLBank San Francisco Award Over $2.2 Million in Grants Towards Affordable Housing

Rhea-AI Summary

Tri Counties Bank and FHLBank San Francisco have awarded over $2.2 million in grants towards affordable housing projects in California. The grants, part of the Affordable Housing Program (AHP) General Fund, will benefit two organizations:

1. Rural Communities Housing Development (RCHDC): Received $660,000 for Sunrise Cottages, a 44-unit community for low-income seniors in Anderson, Shasta County.

2. The Kelsey (partnered with Mercy Housing California): Awarded $1.6 million for The Kelsey Civic Center, a 112-unit development in San Francisco, with 28 units reserved for individuals with disabilities.

These projects aim to address the affordable housing crisis and provide support services for vulnerable populations. The AHP grants are competitive and awarded annually to projects demonstrating need and feasibility.

Positive

• Tri Counties Bank is contributing to affordable housing initiatives, potentially improving its corporate social responsibility profile
• The bank's partnership with FHLBank San Francisco may strengthen its position in the affordable housing sector
• Participation in high-profile community development projects could enhance Tri Counties Bank's brand reputation

Negative

• None.

Insights

Financial Analyst

The $2.2 million in grants for affordable housing projects demonstrates a significant commitment to addressing housing affordability issues in California. While this is a positive initiative, its direct impact on Tri Counties Bank's financials is likely minimal. The bank's role as a conduit for these grants may enhance its community reputation and potentially lead to increased customer loyalty and business opportunities in the long term. However, investors should note that such initiatives, while socially responsible, typically don't translate to immediate financial gains. The collaboration with FHLBank San Francisco could strengthen Tri Counties Bank's position in the affordable housing lending sector, possibly leading to increased loan volumes in this area over time.

Real Estate Expert

The grants supporting two distinct affordable housing projects highlight a growing trend in addressing housing needs for vulnerable populations. The Sunrise Cottages project in rural Shasta County, with $660,000 in funding, targets low-income seniors and addresses homelessness, a critical issue in many communities. The larger $1.6 million grant for The Kelsey Civic Center in San Francisco is particularly noteworthy for its "disability-forward" approach, reserving 25% of units for individuals with disabilities. This inclusive design could set a new standard in affordable housing development. Both projects' proximity to essential services and amenities enhances their long-term viability and resident quality of life, potentially reducing turnover and maintenance costs.

Social Impact Analyst

These grants represent a significant step towards addressing California's affordable housing crisis, particularly for underserved populations. The focus on seniors, individuals with disabilities and those transitioning from homelessness aligns with critical social needs. The Kelsey Civic Center's innovative "Inclusion Concierge" concept could become a model for future developments, potentially influencing policy and design standards in affordable housing. The emphasis on sustainable features like all-electric, low-carbon building design in The Kelsey project also addresses environmental concerns. While the immediate impact is localized to specific communities, the ripple effects of these projects could inspire similar initiatives statewide, contributing to a broader solution for housing affordability and accessibility.

CHICO, Calif.--(BUSINESS WIRE)-- Tri Counties Bank, in collaboration with the Federal Home Loan Bank of San Francisco (FHLBank San Francisco) and its Affordable Housing Program (AHP) General Fund, awarded grants totaling more than $2.2 million to Rural Communities Housing Development Corporation (RCHDC) and The Kelsey (in partnership with Mercy Housing California).

A rendering of The Kelsey Civic Center, which will be built across from San Francisco’s City Hall. Photo Credit: The Kelsey.

“Tri Counties Bank is delighted to collaborate with the FHLBank San Francisco in support of more affordable housing throughout California,” said Rick Smith, President and CEO of Tri Counties Bank. “These grants, along with the dedicated efforts and partnership of local organizations, will make a significant impact in the lives of seniors and those with disabilities in our communities.”

RCHDC’s mission is “to provide decent and affordable housing to low- and moderate-income individuals.” The $660,000 grant will benefit Sunrise Cottages, a community of 44 one-bedroom units in Anderson, Calif., located in rural Shasta County, for low-income seniors, including those transitioning out of homelessness. Residents will have access to vital support services and the property will be conveniently located near local essential services and amenities, such as a senior center, grocery stores, and a pharmacy.

The Kelsey, a national nonprofit organization, co-develops affordable, accessible, and inclusive housing – termed “disability-forward” housing – for people with and without disabilities. In partnership with Mercy Housing California, their $1.6 million grant will help to construct The Kelsey Civic Center, located directly across from San Francisco's City Hall. This development will create 112 units of affordable housing for low-income individuals and families, 28 of which will be reserved for individuals with disabilities who use Home and Community-Based Services. The building will be an all-electric, low-carbon building with amenities including, community rooms, bike parking, and support services, including The Kelsey’s live-in Inclusion Concierge.

“This year’s AHP grants nearly double our investment over last year’s funding for critically needed affordable housing across our high-cost market of Arizona, California, and Nevada,” said Eric Cicourel, Senior Vice President, Community Investment Officer of FHLBank San Francisco. “We are grateful to our members and their partners, including Tri Counties Bank with Rural Communities Housing Development Corporation and Mercy Housing, for stepping up and working with us to help give more low-income families and vulnerable individuals a high-quality and affordable place to call home. The affordable housing crisis is impacting far too many people in the communities we serve and throughout the country, but together with our members and community organizations we are helping to make a positive difference with our AHP grants.”

AHP grants are highly competitive and awarded annually to FHLBank San Francisco members working in partnership with affordable housing developers and community organizations. Basic eligibility requirements include projects demonstrating a need for subsidy and developmental and operational feasibility. Further, rental housing projects must reserve at least 20% of units for households at or below 50% of the HUD area median income (AMI) while owner-occupied housing projects must serve households at or below 80% AMI.

To learn more about the Affordable Housing Program, visit fhlbsf.com.

About Tri Counties Bank

Established in 1975, Tri Counties Bank is a wholly-owned subsidiary of TriCo Bancshares (NASDAQ: TCBK) headquartered in Chico, California, with assets of almost $10 billion and nearly 50 years of financial stability. Tri Counties Bank provides a unique brand of Service With Solutions® for communities throughout California with a breadth of personal, small business and commercial banking services, plus an extensive branch network, access to approximately 40,000 surcharge-free ATMs nationwide, and advanced mobile and online banking. Tri Counties Bank participates in the Cities for Financial Empowerment (CFE) Fund’s BankOn program that seeks to ensure that everyone has access to safe and affordable financial products and services. Visit TriCountiesBank.com to learn more. Member FDIC.

About the Federal Home Loan Bank of San Francisco

The Federal Home Loan Bank of San Francisco is a member-driven cooperative helping local lenders in Arizona, California, and Nevada build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions — propel homeownership and expand access to quality housing and boost economic development. Together with our members and other partners, we are making the communities we serve more vibrant, equitable, and resilient.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240813226524/en/

Megan Sheehan, AVP, Public Relations Manager

megansheehan@tcbk.com

(530) 332-2330

Source: Tri Counties Bank

FAQ

How much did Tri Counties Bank (TCBK) and FHLBank San Francisco award in affordable housing grants?

Tri Counties Bank and FHLBank San Francisco awarded over $2.2 million in grants towards affordable housing projects in California.

What projects will benefit from the Tri Counties Bank (TCBK) affordable housing grants?

The grants will benefit Sunrise Cottages, a 44-unit community for low-income seniors in Anderson, and The Kelsey Civic Center, a 112-unit development in San Francisco with 28 units reserved for individuals with disabilities.

How much did Rural Communities Housing Development (RCHDC) receive from Tri Counties Bank (TCBK) for affordable housing?

Rural Communities Housing Development (RCHDC) received a $660,000 grant for the Sunrise Cottages project in Anderson, California.

What is the value of the grant awarded to The Kelsey by Tri Counties Bank (TCBK) for affordable housing?

The Kelsey, in partnership with Mercy Housing California, was awarded a $1.6 million grant for The Kelsey Civic Center project in San Francisco.