The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) has announced that its Board of Directors approved up to $45.7 million in voluntary grant funding for 2026, doubling the bank’s voluntary contribution rate from approximately 5 percent to 10 percent of prior-year net income.

This increased commitment will significantly expand support for affordable housing supply, homeownership opportunities, and community development across its three-state district of California, Nevada, and Arizona.

For the fourth consecutive year, in 2026 the bank is making an enhanced commitment of approximately 5 percent of its 2025 net income — $23.2 million — toward voluntary community investment programs. The Board also approved an additional $22.5 million voluntary mission contribution to the bank’s 2026 Affordable Housing Program (AHP).

Together, these voluntary contributions total approximately 10 percent of the bank’s 2025 net income, double last year’s voluntary funding rate of 5 percent. These voluntary contributions are in addition to the bank’s statutory contributions that fund its annual AHP.

“These enhanced voluntary commitments reflect the Board’s confidence in our strong financial foundation and our mission to help address the region’s urgent housing and economic challenges,” said Winthrop Watson, interim president and CEO of FHLBank San Francisco. “Our financial strength is allowing us to take additional action for our members and their communities.”

FHLBank San Francisco’s increased voluntary investment will directly support:

Increasing Housing Supply

• Voluntary funding for the Affordable Housing Program (AHP) in addition to statutory contributions will support the development and preservation of thousands of affordable homes across the region through the AHP General Fund.
• Since 1990, FHLBank San Francisco has awarded more than $1.4 billion in AHP grants, to support the construction, rehabilitation, or purchase of over 156,600 homes affordable to lower-income households.

Making Homeownership More Affordable

• Additional funding for the Middle-Income Downpayment Assistance program will improve access to affordable and sustainable homeownership opportunities for aspiring middle-income first-time homebuyers. Eligible grantees may qualify for a grant of up to $50,000 to help with the homebuyer’s downpayment and closing costs.

Strengthening Community and Economic Development

• Increased funding for the AHEAD program will support economic opportunity by creating and preserving jobs, supporting small businesses, fostering microlending and microenterprise development, and serving communities with limited access to economic opportunity, including veterans and tribal communities.

Supporting Community Financial Institutions

• By providing reliable, low-cost liquidity, financial solutions, and expanded resources for affordable housing and economic development – including this increased voluntary grant funding – FHLBank San Francisco helps local, community-based financial institutions continue to meet the needs of the communities they serve.

In partnership with its members, FHLBank San Francisco continues to invest in solutions that expand affordable housing supply, increases homeownership opportunities and boosts community development across California, Nevada, and Arizona.