Wells Fargo Ranked No. 1 Affordable Housing Investor in the U.S.

Bank’s financing efforts helped create more than 180,000 units of
affordable housing nationwide

SAN FRANCISCO–(BUSINESS WIRE)–Wells
Fargo & Company (NYSE: WFC) has been named the largest investor
in affordable multifamily housing in the U.S., according to research
conducted by accounting firm, Cohn Reznick. With increasing demand for
affordable rental options across the nation, Wells Fargo is helping to
bridge the affordability gap as the number one investor in Low Income
Housing Tax Credits for affordable multifamily housing in the U.S., with
$9 billion in investments over the last five years.

“There is a significant affordable housing crisis impacting the country
right now,” said Mark Myers, head of Wells Fargo Commercial Real Estate.
“Demand for affordable rental housing continues to be extremely high
with many people paying a disproportionate percentage of their income on
rent. As the largest commercial real estate lender in the country, being
able to help meet the need for more affordable living options for our
customers and communities is a top priority for Wells Fargo.”

Wells Fargo contributes debt and equity to support affordable
multifamily housing and has financed more than 180,000 units of
affordable housing over the last five years.

The
Urban Institute estimates that for every 100 “extremely low-income”
renter households (those with incomes at or below 30 percent of the area
median), there are just 29 affordable units available in the
marketplace, translating into a total shortfall of more than eight
million units.

New York City is just one example of cities across the country
struggling to provide enough affordable housing for low- and
moderate-income residents.

“In New York, we have more people who want to live here than we have
housing,” said Rafael Cestero, president and CEO of Community
Preservation Corporation (CPC), a non-profit affordable housing lender
in NYC. “This creates a supply and demand issue that’s driving rents
higher and creating an exasperated need for affordable housing. Without
Wells Fargo’s commitment to working with local government and investing
in organizations like CPC, New York would be a different place and there
would be fewer opportunities for low- and middle-income families to have
affordable living options in the city.”

Wells Fargo has been investing in tax credits for more than 15 years and
is one of the few banks active in both direct and fund equity
investments, which increases the amount of capital used to build
affordable housing for individuals and families. Federal housing tax
credits are awarded to developers of qualified projects. Developers then
sell these credits to investors like Wells Fargo to raise capital for
their projects, which reduces the debt the developer would otherwise
have to borrow, enabling the developer to charge reduced rents.

In addition to tax credit investments, Wells Fargo is an active lender
to the affordable housing sector. Since 2014, Wells Fargo has lent $9.6
billion for affordable housing properties by providing short-term
construction, bridge and permanent financing for affordable multifamily
properties using its balance sheet as well as the Federal Housing
Administration (FHA), and Fannie Mae and Freddie Mac programs. Wells
Fargo works closely with experienced multifamily market-rate and
affordable housing developers and investors, as well as mission-oriented
for-profits and not-for-profits and Community Development Financial
Institutions (CDFIs) that are focused on affordable housing and economic
development.

Wells Fargo supports the development and preservation of affordable
housing, including both multifamily and single-family housing, in
numerous ways including tax credit investments, commercial lending,
foundation grants, mortgages, and bank team member volunteer time. Since
2012, Wells Fargo has contributed $25 billion in loans, investments and
grants for multifamily affordable housing (Community Reinvestment Act
data). In addition, Wells Fargo Home Mortgage (WFHM) is the No. 1
originator of home loans to residents of low- and moderate-income
neighborhoods. WFHM’s loan originations in low- and moderate-income
neighborhoods totaled nearly $15 billion, or 46,401 loans.

Details of select Wells Fargo affordable housing developments are
available on Wells
Fargo Stories.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Founded in 1852
and headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial finance
through more than 8,600 locations, 13,000 ATMs, the internet
(wellsfargo.com) and mobile banking, and has offices in 42 countries and
territories to support customers who conduct business in the global
economy. With approximately 269,000 team members, Wells Fargo serves one
in three households in the United States. Wells Fargo & Company was
ranked No. 27 on Fortune’s 2016 rankings of America’s largest
corporations. Wells Fargo’s vision is to satisfy our customers’
financial needs and help them succeed financially. News, insights and
perspectives from Wells Fargo are also available at Wells
Fargo Stories.

Contacts

Wells Fargo & Company
Media
Jen Hibbard,
415-396-4609
jen.hibbard@wellsfargo.com
415-314-3062
– mobile
@jenhibbardWF
or
Media
Shelley
Miller, 704-715-2471
shelley.miller@wellsfargo.com
980-230-9489
– mobile
@shelleymillerWF