SAN JOSE, Calif., Nov. 6, 2013 (GLOBE NEWSWIRE) -- Housing Trust Silicon Valley (HTSV) announces today that it will be the recipient of a $540,000 investment for affordable housing projects from the Cisco Foundation. This investment is in addition to the $3 million in funding from the U.S. Department of Treasury, the County of Santa Clara and the Santa Clara County Association of Realtors (SCCAOR) that HTSV received earlier in October.
This new investment is a continuation of Cisco's history of support for HTSV. When HTSV was initially formed in 2000, San Jose, Calif.-based Cisco was one of its first investors, contributing $1 million to address the affordable housing crisis in the Bay Area.i
As one of Silicon Valley's largest employers, Cisco has a vested interest in helping individuals find housing as part of building a strong and vibrant community for all the South Bay's residents. The Cisco investment will be used to finance the development of multi-family units for families, seniors and those with special needs. These funds will leverage an additional $13 million in financing from both private and public sources, creating an additional 300 to 500 units of affordable rental housing for some of the Valley's most vulnerable residents.
"The tight housing market in the Silicon Valley makes finding affordable housing a difficult proposition for a wide range of residents in our community, including retail and service professionals," said Peter Tavernise, Cisco Foundation Executive Director. "That's why Cisco helped found, and is committed to supporting, this new effort with Housing Trust Silicon Valley. Every day their work helps people in our community through loan and security deposit programs, and public policy initiatives that address the ongoing housing crisis."
In the second quarter of this year, the San Jose metro area had the highest average rent among more than 40 markets across the country, according to the most recent City of San Jose's Housing Market Updateii. Average rents also increased close to10% year-over-year compared to the second quarter of 2012.
Additionally, market rents are significantly out of reach for the area's low or moderate-income workers. An annual income of more than $70,000 is required to affordably rent a one-bedroom apartment in the San Jose metro area.
"It's through major investments like Cisco's that the Housing Trust can continue to aid so many families needing housing every year," said Kevin Zwick, HTSV's CEO. "Unlike other housing trusts across the country, we don't rely on local taxes and need the support of the local business community to fund our efforts. We truly appreciate Cisco's partnership."
For more information about HTSV's first-time homebuyer, multi-family and homelessness assistance programs, please visit: http://www.housingtrustsv.org
About Housing Trust Silicon Valley
Housing Trust Silicon Valley (HTSV) is among the largest housing trusts in the nation financing housing and assisting first-time homebuyers. As a Community Development Financial Institution (CDFI), HTSV is nationally recognized for providing the resources and leadership needed to make housing more affordable for those who want to live in Silicon Valley. Since 2001, HTSV has invested more than $75 million and leveraged more than $1.88 billion to create more than 9,953 housing opportunities. Of those served, 83% had household incomes below 80% of the Area Medium Income (AMI).