Tech Credit Union has joined seven banks to fund an effort to build affordable, multifamily housing in the region known for high home prices.
The 70,000-member $1.7 billion San Jose, Calif.-based credit union will provide money to the Housing Trust Silicon Valley, a $9 million self-sustaining effort that provides low-cost loans to developers who commit to building affordable multifamily housing in the San Francisco Bay area.
Tech CU is the only credit union to join the effort and said it is the only credit union in the country helping to fund similar work.
“Many in the Bay Area are challenged by the region’s higher-than-average housing costs,” said Tech CU CEO Barbara Kamm. “We’re committed to supporting our members by offering low rates on mortgage and home equity loans, as well as lower fees. In addition, we support increasing the amount of affordable housing in the area, which is why we’re partnering with the Housing Trust Silicon Valley.”
Seven Bay Area banks have also invested, including Bridge Bank, East West Bank, First Bank, Heritage Bank of Commerce, Manufacturers Bank, One Pacific Coast Bank, and Silicon Valley Bank.
“We need financial partners like Tech CU to help make these kinds of initiatives possible,” said Kevin Zwick, CEO of the Housing Trust, “The multifamily lending program will be the catalyst to help jump-start projects by providing critical predevelopment and acquisition financing towards the creation or renovation of affordable multifamily rentals in Santa Clara, San Mateo, San Francisco and Alameda counties.”