FOR IMMEDIATE RELEASE CONTACT: Mayor’s Office: August 11, 2004 Yusef K. Robb

MAYOR HAHN AND CalHFA ANNOUNCE $40 MILLION FIRSTTIME HOME BUYER PROGRAM FUNDS ENHANCE THE ESTABLISHED CalHFA AND SCHFA PARTNERSHIP

Los Angeles -Mayor Jim Hahn joined officials from the California Housing Finance Agency (CalHFA) and the Southern California Home Financing Authority (SCHFA) to announce the addition of $40 million to the partnership to help low and moderate income, first-time homebuyers in Southern California. The partnership creates affordable home buying opportunities for families and individuals in the City of Los Angeles and Los Angeles and Orange counties.

“We must take action because real estate is so expensive,” said Mayor Jim Hahn. “Low income families, people with good-paying union, police, fire and teaching jobs are being priced out of the market. This state and local partnership will help working families realize the American dream of homeownership through below-market mortgage rates as well as through down payment and closing cost assistance. I would like to thank CalHFA for its efforts to help California homebuyers.”

The $40 million made available today by the City of Los Angeles and CalHFA supplements the $270 million established commitment by CalHFA and SCHFA in December. SCHFA is a joint powers authority that covers both Los Angeles and Orange counties. The partnership will combine all three entities’ programs and financial and technical resources, which will result in lower program costs. The funds made available through the issuance of bonds will be used to provide low interest loans to first-time homebuyers.

In December 2003, SCHFA and CalHFA partnered to create more housing opportunities available for first-time homebuyers. At that time and again in June 2004, SCHFA contributed $100 million in tax-exempt bonds and CalHFA contributed $35 million bringing the total to $270 million in contributions. Already through this program, 405 loans totaling $94 million have been issued to families and individuals, many of whom had been priced out the Southern California housing market.

“Home prices in Southern California continue to squeeze working class individuals out of owning their own homes,” said Theresa A. Parker, CalHFA Executive Director. “This historic partnership between CalHFA, SCHFA and the City of Los Angeles will expand the affordability of homes and put the dream of homeownership within reach.”

Los Angeles County Supervisor Yvonne Brathwaite Burke, the Chairwoman of the SCHFA Board of Directors, said, "The counties of Los Angeles and Orange look forward to continuing this successful partnership with the State that combines the State's lending support and low interest rates with a variety of additional State and County resources. We are excited with the opportunities this funding will provide. We estimate that hundreds of first-time homebuyers will be able to obtain the loans and down payment assistance."

All other CalHFA loan programs and program requirements will apply to homebuyers in this special partnership program. CalHFA will continue to make available all applicable down payment assistance programs currently available in the Los Angeles and Orange, such as the Extra Credit Teacher Program and High Cost Area Home Purchase Assistance Program.

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