FHLBank San Francisco Awards $6.7 Million in Grants to Develop Affordable Housing in Arizona

Grants will add 204 units of affordable housing across Flagstaff, Pisinemo and Topawa, Prescott, and Tucson

SAN FRANCISCO, July 10, 2025 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) today announced $6.7 million in Affordable Housing Program (AHP) General Fund grants to support the development of affordable housing in Arizona. This year's awarded grants represent a 118% increase in funding for Arizona over last year, demonstrating the Bank’s commitment to deliver on its mission to address the critical shortage of affordable housing in the state. The 2025 AHP grants are being awarded to four important Arizona developments that will collectively create 204 units of affordable housing in Flagstaff, Pisinemo and Topawa, Prescott, and Tucson.

“We continue to make meaningful investments to address the affordable housing crisis across Arizona, California, and Nevada,” said Joseph E. Amato, interim president and CEO of FHLBank San Francisco. “This funding, delivered in partnership with our local member financial institutions, supports housing affordability solutions in urban centers, rural areas, and tribal lands. We are helping to expand the supply of housing and for the individuals and families who need it most.”

According to the National Low Income Housing Coalition, Arizona sits fourth on a national list that determines which states have the most extremely low-income households in the nation, those earning 0% to 30% of area median income, who are severely cost burdened, meaning the household spends more than 50% of its income on housing costs, including utilities.

AHP grants help finance the development, preservation, or purchase of multifamily and single-family housing for lower-income people in need, including the chronically unhoused, families, seniors, veterans, at-risk youth, people living with disabilities and mental health challenges or overcoming substance abuse. Grants are delivered through FHLBank San Francisco member institutions partnering with nonprofits and affordable housing developers to submit applications for grants for specific projects in an annual funding competition. AHP-funded projects represent a wide range of strategies and solutions, from historic preservation and adaptive reuse to new construction and rehabilitation.

The 2025 AHP Arizona-based General Fund grants will support the following projects:

1. Flagstaff: Foundation for Senior Living’s Aspen Loft Apartments was awarded a $2 million grant, in partnership with FHLBank San Francisco member Raza Development Fund, Inc., to create a 65-unit, energy efficient workforce housing development
2. Topawa and Pisinemo: the Tohono O'odham Ki:Ki Association’s TOKA Homes VI project was awarded a $1.5 million grant, in partnership with member Western Alliance Bank, to create 30 single-family homes across two sites on the Tohono O'odham Nation Reservation serving formerly unhoused people and families earning at or below 60% of the area median income.  
3. Tucson: Compass Affordable Housing, Inc.’s Drexel Commons was awarded a $2 million grant, in partnership with member Raza Development Fund, Inc., to create a 67-unit affordable rental community serving low-income families, with 10 units reserved for households with tenant-based rental assistance.
4. Prescott: USA Housing, Inc.’s Bradshaw III Senior Community was awarded a $1.26 million grant, in partnership with member Raza Development Fund, Inc., to create 42 units of fully-accessible affordable housing for seniors to age in place.

In 2025, FHLBank San Francisco awarded nearly $50 million in AHP grants, including funding from its 2025 AHP General Fund for projects in California and Arizona, and from its 2025 Nevada Targeted Fund for projects in Nevada. Since 1990, FHLBank San Francisco has awarded over $1.4 billion in grants for the construction, preservation, or purchase of nearly 155,000 affordable housing units. Collectively, the FHLBanks are one of the largest sources of private sector grants for affordable housing in the country, providing approximately $8.3 billion in grant funding to help more than one million households have an affordable place to call home since 1990. Providing resources for affordable housing is central to FHLBank San Francisco’s mission, with at least 10% of the Bank’s net income from the prior year committed to fund affordable housing and related community investment programs.   

Where AHP projects are developed, local economies also get a boost, as these projects create jobs, increase construction and consumer spending, and generate new tax revenues. Learn more about the communities, families, and individuals that have benefited from access to AHP-funded housing on the Bank’s website.

About the Federal Home Loan Bank of San Francisco
The Federal Home Loan Bank of San Francisco is a member-driven cooperative helping local lenders in Arizona, California, and Nevada build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions —propel homeownership, finance quality affordable housing, drive economic vitality, and revitalize whole neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant and resilient.

Contact:
Tom Flannigan
Tom.Flannigan@fhlbsf.com
415.616.2695

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