SAN FRANCISCO, California - The Union Bank of California Foundation today announced the recipients of its "Cornerstone Award," a new $685,000 grant program that will fund emerging non-profit housing developers in California and assist in the creation of 225 units of affordable housing. This unique program -- the only one of its kind in the state -- will help up-and-coming affordable homebuilders increase their development capacity by providing flexible operating grants and funding for technical assistance, such as peer-to-peer collaboration with more experienced non-profits.

The three winning organizations, 1010 Development Corporation in Los Angeles, Napa Valley Community Housing and the Mexican American Community Services Agency in San Jose, will each receive $195,000 over a three-year period to be used toward the completion of new affordable housing developments in their local areas. An additional $100,000 is earmarked for the day-to-day administration and measurement of the program.

"This award reconfirms Union Bank of California's commitment to help residents of our State find housing in a time of sky rocketing home prices and an overall housing shortage," said Robert A. McNeely, chairman and chief executive officer of the Union Bank of California Foundation. "The Cornerstone Award was designed to help bring much needed affordable housing to the state as well as assist new housing organizations in getting their developments off the ground."

The Cornerstone Award was developed by Union Bank of California's 10-member Community Advisory Board, which plays an integral role in helping the bank's executive management identify the financial needs of low-income and underserved communities. The recipients were chosen in a competitive process from a pool of 22 entrants from across the state. Each entrant had to meet specific requirements, including the completion of at least one significant affordable housing development, demonstration of need in the applicant's primary service area, and proof that the development would have difficulty moving forward without additional funding.

About the winners:

-- 1010 Development Corporation (Los Angeles) -- 1010 is a non-profit developer, established in 1991 by the First United Methodist Church of Los Angeles, to promote economic and community development through the creation of affordable, service-enriched housing. It has completed two projects in Downtown Los Angeles: Villa Flores, 75-units for low-income seniors and Hope Village, a mixed-use project that includes 66-units of family housing, a neighborhood resource center and a daycare facility for 68 children ages 8 weeks to 6 years old. 1010 is expanding its expertise to property management and consulting with other faith-based organizations in their development of affordable housing. 1010 has several exciting mixed-use projects in the predevelopment stage.

-- Mexican American Community Services Agency, Inc. (San Jose) -- MACSA was formed in 1964 to promote the causes of Mexican Americans and provide social services and support for the community. The group became involved in the field of affordable housing in 1993, emphasizing projects in the East San Jose area where there is a high incidence of poverty among Latinos. Since then, MACSA has developed two low-income senior housing complexes, totaling 103 units. MACSA operates these facilities, as well as three youth centers and an adult day health care facility, and has three planned projects underway.

-- Napa Valley Community Housing (Napa) -- NVCH, formed in 1996, builds and manages affordable housing for low-income families and individuals in Napa County, serving households that earn significantly less than the area median income. As the only non-profit housing development agency located in Napa County, NVCH manages 328 rental units at fourteen properties, has completed three new housing developments in the past six years, and has several new complexes in pre-development. Through its Resident Services and Family Empowerment Program, the agency also links residents to needed social services.

According to the National Low Income Housing Coalition, California families on average must earn $19.69 an hour in order to afford the typical two-bedroom apartment, the second highest "housing wage" in the country and almost three times the minimum wage. Statistics also show that rental housing costs are still rising in California, with a 7.34 percent increase in the two-bedroom housing wage over the past year. According to Housing and Urban Development, the current fair market rent for a two-bedroom home in California is $1,024.

Established in 1953, the Union Bank of California Foundation serves as the agent for charitable contributions made by Union Bank of California, N.A., a wholly-owned subsidiary of UnionBanCal Corporation, a publicly traded San Francisco-based bank holding company. Throughout its history, the Foundation represents the bank's investment and commitment to help meet the charitable needs of the communities it serves.

Based in San Francisco, UnionBanCal Corporation (NYSE:UB) is a bank holding company with assets of $36.1 billion at June 30, 2002. Its primary subsidiary is Union Bank of California, N.A., the third largest commercial bank in California. Union Bank of California, N.A., has 254 banking offices in California, 6 banking offices in Oregon and Washington and 18 international facilities. The company's Web site is located at www.uboc.com.

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