Bank of America Merrill Lynch Provides More Than $3.2 Billion in Community Development Banking Lending and Investing in 2014
March 05 2015 - 9:00AM
Business Wire
Scope of Projects Impacted Wide Range of
Constituents in Communities Nationwide
Bank of America Merrill Lynch Community Development Banking
provided more than $3.2 billion in loans, tax credit equity
investments and other real estate development solutions to over 550
clients in 2014, creating more than 13,000 housing units for
individuals, families, seniors, students, veterans and other
at-risk groups across the country.
This effort included:
- A range of innovative financial
solutions for developments, many of which incorporate green and
transit-oriented elements.
- Nearly $2 billion in commercial real
estate-based lending.
- More than $1.1 billion in tax credit
investments.
- More than 140,000 affordable housing
units over the past 10 years.
“There is a tremendous need for affordable housing and
neighborhood revitalization across the U.S.,” said Maria Barry,
BofA Merrill Community Development Banking executive. “For 30
years, Bank of America Merrill Lynch has been a leader in creating
healthy and sustainable communities through a team of highly
experienced real estate experts who specialize in community
development financing through a variety of innovative debt and
equity solutions.”
Some significant projects that closed in 2014 include:
- Developed by OMNI NY, 655 Morris Ave.
is a mixed-income, mixed-use housing revitalization development in
the Bronx, N.Y., which consists of a 176-unit apartment building,
with 20 percent designated for formerly homeless individuals. The
bank financed a $32 million construction period letter of credit
and a $21 million tax credit equity investment via Alliant Capital,
Ltd.
- Legends South Phase III consists of 66
units in 11 newly constructed buildings, providing public,
affordable and market rate housing for families and young
professionals in Chicago. The bank provided Michaels Development
$12.6 million in debt and $15.6 million in federal low-income
housing tax credit (LIHTC) equity. This is the third phase of a
large-scale redevelopment of a former public housing site with 549
units already completed in the earlier phases.
- In Hopewell, Va., the bank provided
Community Housing Partners a $6.5 million construction loan, $6.6
million in direct equity and $1.5 million standby Federal Housing
Administration (FHA) forward commitment. They financed the
demolition and replacement of a 30-unit public housing development,
Langston Apartments, with 56 new affordable family units and offer
financial literacy and self-sufficiency courses as part of their
supportive services.
- In Long Beach, Calif., the bank helped
finance Long Beach & 21st Senior Apartments. The 41-unit
building will serve special-needs seniors (homeless or at risk of
being homeless) and median-income seniors. Meta Housing Corp.
obtained a $12 million construction loan and $13 million in equity
from the bank to fund this project.
- Cicero & George Senior Apartments
will provide a 70-unit new construction LIHTC development for
seniors 55 and older in Chicago. Sponsored by the Hispanic Housing
Development Corp., the project’s financing included a $9.5 million
construction loan commitment and a $12.3 direct tax credit
investment by the bank.
- The bank worked with Volunteers of
America on Blue Butterfly Village, financing the rehabilitation of
a 76-unit townhome-style development in San Pedro, Calif. The $13
million construction loan, $1 million AHP grant and $17 million
indirect equity investment upgraded housing for low-income veteran
and homeless households, with a portion of the units designated for
tenants in mental health services programs.
- The bank provided a $22 million direct
LIHTC investment and a nearly $18 million construction loan for the
rehabilitation of 105 supportive units at the Franciscan Towers in
San Francisco. Owned and managed by the Tenderloin Neighborhood
Development Corp., the development provides safe, supervised
drop-in space to play and learn for more than 250 five- to
18-year-olds. It also has 35 units designated for the formerly
homeless.
- The bank helped DC Preparatory Academy
in Washington, D.C. with $12.7 million in new markets tax credit
(NMTC) equity and $14.8 million in NMTC debt loans for acquisition
of a campus, renovation of the existing elementary school and
construction of a new middle school. The school was able to
increase the number of preschool to eighth grade students served
from 506 to 711 and create 32 new staff positions.
- The Somerset Academy, Losee Campus, is
a public charter school in Las Vegas. The bank provided developer
Turner-Agassi $14.5 million in construction and mini-perm credit
facilities that will be used to construct the high school, allowing
the school to serve 2,320 students from kindergarten to 12th
grade.
“Bank of America Merrill Lynch is committed to helping
underserved neighborhoods become thriving communities,” said Katy
Gnapp, BofA Merrill Commercial Real Estate Banking executive.
“Community Development Banking uses a wide variety of financing
solutions to help provide affordable housing, improve education and
create jobs, thereby improving the quality of life for residents in
those communities.”
Community Development Banking includes the Banc of America
Community Development Corp. (BACDC), which serves as a development
partner and provides debt and equity financing for properties in
low- and moderate-income communities across the country. In 2014,
BACDC completed more than $55 million in developments and began
construction on more than $83 million in developments.
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Reporters May Contact:Anu Ahluwalia, Bank of America,
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