As one of only two nonbank CDFI members of the Federal Home Loan Bank of San Francisco, Century can access the FHLB’s credit, rather than cash, to assist affordable housing developers in innovative ways. Aszkenazy Development has started construction on 62 affordable apartments in the City of San Fernando thanks to an innovative credit enhancement provided by Century Housing. For San Fernando Community Housing Phase I, Century provided a $791,000 letter of credit backed by FHLBSF, that replaced a typical construction performance bond. The cost of such a bond can be prohibitive when a development is not very large.When the development is completed in late 2012, 20 apartments will be reserved for families with special-needs children or adults, with the remaining 42 apartments for households earning $41,000 or less.
Century provided land acquisition and predevelopment financing for this development in April 2011, with a $650,000 loan from the Los Angeles County Housing Innovation Fund. The development is being financed by Citibank, HOME funds from the Los Angeles County Community Development Commission, and tax credit equity from Alliant Capital.