Bank of America Merrill Lynch Community Development Banking Has Record-Setting Year, Lending & Investing More Than $4.5 Billi...
February 01 2016 - 9:00AM
Business Wire
Served as Investor, Lender in SF-RAD, Its
Largest Single CDB Deal
Bank of America Merrill Lynch Community Development Banking
(CDB) provided a record-setting $4.5 billion in equity and lending,
the most in a single year in its more than 30-year history.
In 2015, the Community Development Banking group also completed
its single largest transaction – the San Francisco Rental
Assistance Demonstration (SF-RAD). The bank provided $770 million
as investor and lender on the deal, which will transform more than
1,400 public housing units at 15 properties into safe and
sustainable low-income housing for San Francisco residents. CDB
provided an innovative combination of construction debt, permanent
debt, tax-credit equity, subordinate forgivable debt, and financing
for services for tenants as part of its continued commitment to
create strong communities. No existing tenants will be displaced,
and affordability will be maintained at existing levels. In
addition to safety and aesthetic improvements, other changes will
include seismic upgrades and systems, roof, exterior and energy
efficiency updates.
Other significant projects that closed in 2015 include:
- Landing Road Shelter and Apartments –
Bowery Residents’ Committee developed this first-of-its-kind
project consisting of a 200-bed employment shelter and 136-unit
apartment complex in a single new construction building. With
separate entrances, the shelter provides transitional care to
single adults who have been employed or are employable, while the
apartments house formerly homeless, low-income adults and
families. The bank provided an $8.2 million construction loan
and $11.2 million letter of credit.
- 65th Infantry Regiment Veterans Housing
– Located four miles west of downtown Chicago, this 49-unit new
construction supportive housing development sponsored by Hispanic
Housing Development Corp. will offer mental health counseling,
wellness screenings, transportation, nutritional/financial
education and meals-on-wheels in partnership with Norwegian
American Hospital and Jesse Brown VA Medical Center. The bank
provided a $7.5 million construction loan, an $11.3 million direct
tax credit investment and a $1 million subordinate loan.
- Achievement Prep: Wahler Place Campus –
A combination of an $8.3 million new markets tax credit investment
and $21.3 million in debt financing enables the renovation and
construction of an expansion to this charter school. Serving 960
largely low-income pre-kindergarten to eighth grade students, the
school is one of the highest-performing public charter schools in
Washington, D.C. The project is being built to LEED Gold
standards.
“In 2015, we focused on projects that make a lasting impact in
their communities,” said Maria Barry, Bank of America Merrill Lynch
Community Development Banking executive. “Safe and affordable
housing, health care, jobs, education and community services were
just some of the benefits these projects brought to local
residents, helping us fulfill our long-standing mission of creating
healthy and thriving communities.”
Community Development Banking created more than 14,400 housing
units for individuals, families, veterans, seniors and the
previously homeless across the United States, including more than
13,400 units of affordable housing. From 2005 to 2015, the bank
financed approximately 180,000 housing units through debt and
equity platforms, of which, about 150,000 units are for affordable
housing.
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 2015,
BACDC was a development partner in affordable housing projects with
a total cost of $136 million, including $70 million in completed
projects, $43 million under development and more than $23 million
in new developments.
Bank of America also is the nation’s largest investor in
community development financial institutions (CDFI), with more than
240 CDFI partners in all 50 states, the District of Columbia and
Puerto Rico. As part of its broader commitment to delivering local
economic impact, in 2015, the company completed 14 transactions
totaling $123 million in low-cost loans to CDFIs in the U.S. to
help finance affordable housing. Bank of America also provided more
than $24 million in grants to more than 800 organizations – such as
Habitat for Humanity, Local Initiatives Support Corporation, and
Enterprise Community Partners – that connect individuals and
families to affordable housing and homeownership. The grants are
part of the Bank of America Charitable Foundation’s focus on
revitalizing neighborhoods, educating the workforce and addressing
basic needs, such as hunger and homelessness. In addition,
Bank of America Community Volunteers give nearly 200,000 volunteer
hours each year to support community development organizations in
local communities 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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