SAN JOSE, Calif., April 30, 2015 /PRNewswire/ -- Housing Trust Silicon Valley is the first nonprofit Community Development Financial Institution (CDFI) in the U.S. to earn a credit rating from Standard & Poor's Ratings Services. Its "AA-" rating indicates the organization has a "very strong capacity to meet financial commitments."
"This is a game changing achievement for the Housing Trust," said CEO Kevin Zwick. "It allows more investors, especially those in public companies that can only invest in funds of credit rated organizations, to make a socially responsible investment – not just a charitable donation -- in affordable housing."
Housing Trust Silicon Valley is an independent nonprofit organization launched in 2000 to help address the critical need for more affordable housing opportunities in the region. Participation in its loan pools are used to help build multi-family rental homes for the thousands of working families, seniors on fixed incomes and individuals with special needs and physical disabilities who cannot pay the skyrocketing rents in Silicon Valley, now among the highest in the nation.
"The S&P credit rating is well-respected validation that we are a financially healthy organization," Zwick said. "It opens new avenues for growth and opportunities to meet the region's need for new affordable housing homes, conservatively estimated at 16,000."
Two of those opportunities are new loan pools announced last week by Housing Trust Silicon Valley – a $15 million Affordable Growth Fund to assist in the construction of more than 1,200 affordable rental homes over the next five years and a $10 million zero interest loan fund in partnership with the County of Santa Clara to encourage developers to include homeless and supportive housing in their affordable rental projects.
"We congratulate Housing Trust Silicon Valley on this latest accomplishment," said Greg Becker, President and CEO of Silicon Valley Bank. "It has done extraordinary work and will now have an even greater impact in helping our region deal with housing. Silicon Valley Bank plans to double our investment in Housing Trust Silicon Valley this year, and we hope we are the first of many financial institutions and corporations to do the same."
In its 15-year history, Housing Trust Silicon Valley has invested $94 million in affordable housing solutions, created over 12,700 affordable housing opportunities and assisted over 22,000 individuals, including 2,310 loans for first-time homebuyer assistance. Further information is available at HousingTrustSV.org.
SOURCE Housing Trust Silicon Valley