CHARLOTTE, N.C., Jan. 15, 2019 /PRNewswire/ -- Ally
Financial, Bank of America and Barings, three of the leading
financial services companies in Charlotte, announced a combined investment of
$70.75 million for affordable housing
in the city and surrounding area. This private investment marks the
largest private-public initiative of its kind in Charlotte.
Ally CEO Jeff Brown, Bank of
America CEO Brian Moynihan and
Barings Chairman and CEO Tom Finke
agreed to explore how each of their companies can help address some
of the city's biggest challenges that relate to economic mobility.
Together, the companies are making a combined investment to
incentivize the creation of more affordable housing. The
Charlotte area has witnessed
explosive growth over the past two decades, driving housing costs
up and creating a shortage of affordable homes for low- to
moderate-income families.
"I hope today's announcement encourages more companies to come
forward to support our city," said Charlotte Mayor Vi
Lyles. "It's going to take all of us to solve these big
issues facing so many of our citizens."
The initiative between the three companies increases the impact
of each company's individual investments, which includes:
- $50 million in below-market loans
to finance affordable housing developments, which is equivalent to
a $1 million grant per year for the
next 15 years.
- $11 million invested in the newly
proposed Housing Opportunity Investment Fund, which will assess
affordable housing projects and find financing to execute viable
projects.
- $2.5 million allocated to
economic mobility programming and grants over the next five
years.
- $7.25 million worth of land
donated to make affordable housing possible, particularly in Uptown
Charlotte.
"In Charlotte, the general public, the business community and
elected officials work together to take action and meet these
needs," said Moynihan. "This is a great model for other cities
addressing similar issues."
The below-market loans, which represent the largest portion of
the investment, will be priced as much as 2 percent below market
rate, potentially saving affordable housing developers $1 million every year over the next 15 years.
This will help families access more affordable housing options with
more inventory available.
"While this investment is significant, there is more work to be
done to make affordable housing achievable and sustainable in
Charlotte," said Finke, who made
the investment in partnership with Barings' parent company
Massachusetts Mutual Life Insurance Company (MassMutual). "We hope
this partnership inspires other organizations to contribute to
increasing economic mobility in our community."
The newly-proposed Housing Opportunity Investment Fund will be
managed by the city's Local Initiatives Support Corporation (LISC),
which is part of a national corporation that focuses on projects
that revitalize communities and bring greater economic opportunity
to residents.
"As the Charlotte economy has
grown, low- to moderate-income families have to pay a
disproportionate percentage of their take-home pay for decent
housing in safe and stable neighborhoods," said Brown. "We are
excited to be working hand in hand with Bank of America and Barings
to make this contribution to affordable housing, and we're
encouraging other companies to join us in this important
initiative."
Ally Financial Inc.
Ally Financial Inc. (NYSE:
ALLY) is a leading digital financial services company with assets
of $173.1 billion as of September 30, 2018. As a client-centric company
with passionate customer service and innovative financial
solutions, Ally is relentlessly focused on "Doing it Right" and
being a trusted financial partner for its consumer, commercial, and
corporate customers. Ally's award-winning online bank (Ally Bank, Member FDIC and Equal Housing Lender)
offers mortgage-lending services and a variety of deposit and other
banking products, including CDs, online savings, money market and
checking accounts, and IRA products. Ally also promotes the Ally
CashBack Credit Card. Additionally, Ally offers securities
brokerage and investment advisory services through Ally Invest.
Ally remains one of the largest full-service auto finance
operations in the country with a complementary auto-focused
insurance business, which together serve approximately 18,000
dealer customers and millions of auto consumers. Ally's robust
corporate finance business offers capital for equity sponsors and
middle-market companies.
For more information and disclosures about Ally, visit
https://www.ally.com/#disclosures.
Bank of America
Bank of America is one of the world's leading financial
institutions, serving individual consumers, small and middle-market
businesses and large corporations with a full range of banking,
investing, asset management and other financial and risk management
products and services. The company provides unmatched convenience
in the United States, serving
approximately 67 million consumer and small business clients with
approximately 4,400 retail financial centers, approximately 16,100
ATMs, and award-winning digital banking with more than 36 million
active users, including nearly 26 million mobile users. Bank of
America is a global leader in wealth management, corporate and
investment banking and trading across a broad range of asset
classes, serving corporations, governments, institutions and
individuals around the world. Bank of America offers
industry-leading support to approximately 3 million small business
owners through a suite of innovative, easy-to-use online products
and services. The company serves clients through operations across
the United States, its territories
and more than 35 countries. Bank of America Corporation stock
(NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements
and other important information, visit the Bank of America
newsroom. Click here to register for news email alerts.
www.bankofamerica.com
Barings
Barings is a $310+ billion* global financial services firm
dedicated to meeting the evolving investment and capital needs of
our clients. We build lasting partnerships that leverage our
distinctive expertise across traditional and alternative asset
classes to deliver innovative solutions and exceptional service.
Part of MassMutual, Barings maintains a strong global presence with
over 1,900 professionals and offices in 16 countries. Learn more at
www.barings.com.
*As of September 30,
2018
Contacts:
Ferris Morrison, Bank of America,
1.980.387.5843
ferris.morrison@bankofamerica.com
Andrea Puchalsky, Ally,
1.313.656.3798
Andrea.Puchalsky@ally.com
Kelly Smith, Barings,
1.980.417.5648
kelly.smith@barings.com
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SOURCE Ally Financial