Wells Fargo Invests $33 Million for Affordable Housing in 10 Western States
Portland, Ore. — January 3, 2007
Thousands of low- and moderate-income residents in Oregon, Washington, California, Montana, Idaho, Utah, Colorado, New Mexico, Nevada and Arizona will be able to move into safe, clean, affordable housing, thanks to a $33 million investment by the Wells Fargo Community Development Corporation (CDC). Homestead Capital of Portland will use the funds to help build 1,005 affordable, multifamily rental housing units in the 10 states in the next 18 months. This is the largest single investment Homestead Capital has ever received in its 13 years and is the largest investment the Wells Fargo CDC has ever made at one time with an affordable housing corporation. “Wells Fargo is a tremendous business partner,” said Deborah Saweuyer-Parks, chief executive officer of Homestead Capital. “Its commitment makes Wells Fargo the preeminent supporter of our mission.” Including the new commitment, Wells Fargo has provided Homestead Capital more than $240 million in equity, bridge financing, construction and pre-development loans since 1994. “Our investments in Homestead Capital are one of the many ways we support the creation of affordable housing to help build healthy communities,” said Alan Johnson, Wells Fargo’s regional president for Oregon and southwest Washington. “We partner with groups such as Homestead Capital that share our goals of community improvement because we can accomplish so much more than if we were each working on our own.” Homestead Capital works with communities to identify affordable housing needs and brings together developers and investors (banks, insurance companies and other corporations) to create housing through the federal Low-Income Housing Tax Credit program established by Congress. Homestead’s investors earn tax credits for supplying the capital, while local communities gain much-needed affordable multifamily housing. Wells Fargo created its CDC in 2000 to support affordable housing. Since then it has committed more than $1.4 billion in more than 500 investments for affordable housing and community development projects in low income areas across the nation. “Our strength as a national company that is focused on delivering service at the local level is what enables us to make investments of this magnitude,” said Bob Taylor, head of the Wells Fargo CDC. “In this instance, we’re investing $33 million but the benefits everyone will receive will be priceless.” Homestead Capital is the largest nonprofit syndicator of low-income housing tax credits in the West. Established in 1993, it has raised more than $440 million to build more than 4,000 units of affordable multifamily housing in more than 80 projects. More information about Homestead Capital is available at (503) 276-1555 or on the web at www.homesteadcap.com. Wells Fargo & Company is a diversified financial services company with $483 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,100 stores and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. has the highest possible credit rating, "Aaa," from Moody's Investors Service and the highest credit rating given to a U.S. bank, "AA+," from Standard & Poor's Ratings Services. It also received an “Outstanding” rating – the highest regulatory rating possible – in its most recent Community Reinvestment Act examination by the Office of the Comptroller of the Currency.