Bank of America Merrill Lynch Community Development Banking
(CDB) had a record-setting year in 2017, providing $4.53 billion in
loans, tax credit equity investments and other real estate
development solutions. It deployed $3.04 billion in debt
commitments and $1.49 billion in new equity investments to help
build strong and healthy communities by financing affordable
housing, charter schools, health care and economic development
across the United States.
As the need for affordable housing and services continues to
grow, CDB remains focused on safe housing options, sustainability
and an emphasis on employment opportunities to achieve the best
results for the community.
Much of this effort is driven by creating affordable housing for
individuals, families, seniors, students, veterans, the formerly
homeless, those with special needs and other at-risk groups. In
2017, the developments CDB financed produced more than 13,500
housing units, of which, 12,000 were affordable, including:
- 2,468 green housing units.
- 3,063 housing units for seniors.
- 1,688 units for veterans, individuals
with special needs, and the formerly homeless.
“Making a significant impact in the community is an important
consideration in the projects we finance,” said Maria Barry,
Community Development Banking national executive at Bank of America
Merrill Lynch. “In addition, we invest in programs and services
that assist residents, contributing to the long-term sustainability
of a community. We’ve seen the significant benefits they achieve,
including increased high school graduation rates, employment and
quality of health, which help build strong and healthy
communities.”
Some high-impact projects that closed in 2017 include:
- Jordan Downs, Los Angeles,
Calif. – For its first phase, the bank provided a $33.9 million
construction loan and $25.4 million in direct low-income housing
tax credit (LIHTC) equity to construct 115 new affordable housing
units in 12 buildings, preventing displacement during the
revitalization of the 1950s-era public housing development in the
Watts neighborhood.
- Lathrop Homes, Chicago, Ill. – A
combination of a $60.5 million construction loan and an $81.9
million direct equity investment, including $21 million in historic
tax credit equity, helped finance 414 units of mixed-income and
mixed-use housing. The project includes new construction and
adaptive reuse to rehabilitate and expand the historic housing
development, which was built in 1938.
- Beverly’s Place, Brooklyn, N.Y.
– This newly constructed 72-unit affordable housing development,
located in East New York, includes 43 units for disabled and/or
homeless individuals and families. It features an urban farm that
will provide educational opportunities and fresh produce for
tenants. The bank provided a $20.4 million construction loan, a
$24.5 million indirect equity investment through Enterprise
Community Investment, and a $3.5 million end-to-end loan.
- Liberty Square, Miami, Fla. –
The bank provided a $23.1 million construction loan and $16.3
million in direct federal LIHTC equity, and arranged for a $10.3
million permanent loan through Freddie Mac. These transactions
enabled the development to replace 73 public housing units and add
121 affordable units and 10 workforce housing units. In total, this
first phase will consist of 95 percent affordable and 5 percent
market-rate workforce housing.
- Howard Levine Child Development
Center at Renaissance West, Charlotte, N.C. – This new,
22,000-square-foot construction will serve low-income working
parents by providing full daycare for 152 children, ages six weeks
to five years old. The center addresses a long-standing community
need for quality early care and education, and the bank provided
$1.54 million in new market tax credit equity to support this
project.
From 2005 to 2016, the bank financed approximately 210,000
housing units, and of those, nearly 175,000 units were for
affordable housing.
In 2017, CDB reached a significant milestone – it exceeded $1
billion in charter school financing since 2000. This financing
impacted more than 80 schools and provided educational
opportunities for more than 25,000 students. CDB broadened its
commitment to charter schools by establishing a groundbreaking
Facilities Investment Fund (FIF), offering a $66 million line of
credit. The FIF will enable high-quality public charter
schools to secure below-market-rate financing to build and/or
rehabilitate schools, which will increase access to quality
education in the communities we serve.
As part of Bank of America’s commitment to advance economic and
social progress for low- and moderate-income communities, the
company provided more than $270 million in capital to community
development financial institutions (CDFIs) in 2017, including $64
million for CDFIs supporting affordable housing.
The Bank of America Charitable Foundation also provided $40
million in grants to more than 1,000 organizations – including
Habitat for Humanity, Local Initiatives Support Corporation, Mercy
Housing, and Enterprise Community Partners – that connect
individuals and families to affordable housing and advance economic
development. These investments are part of the foundation’s focus
on increasing economic mobility by addressing workforce development
and education, basic needs, and community revitalization. In
addition, Bank of America employees volunteered for nearly 150,000
hours last year to support local community development
organizations across the country.
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Reporters May Contact:Anu Ahluwalia, Bank of America,
1.646.855.3375anu.ahluwalia@bankofamerica.com
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