Bank of America Merrill Lynch Provides Nearly $4 Billion in Community Development Lending and Investing in 2016
February 14 2017 - 9:30AM
Business Wire
Bank of America Merrill Lynch Community Development Banking
(CDB) provided nearly $4 billion in loans, tax credit equity
investments and other real estate development solutions to create
housing for individuals, families, veterans, seniors and the
previously homeless across the United States in 2016. This effort
included:
- $2.7 billion in debt commitments,
including $36 million in FHA loans.
- $1.2 billion in new equity
investments.
- 12 green projects, including three
LEED-certified properties.
- 13,200 housing units in 2016; 196,000
housing units since 2005.
In 2016, the Community Development Banking group completed the
second phase of the San Francisco Rental Assistance Demonstration
(SF-RAD), the largest and most complex RAD financing in the United
States to date. Over both phases, the bank provided $2.2 billion as
investor and lender, which will transform nearly 3,500 public
housing units at 29 properties into safe and sustainable low-income
housing for more than 10,000 San Francisco residents. The project
will rehabilitate the property by addressing critical safety
issues, upgrading the living areas and increasing the number of
Americans with Disabilities Act (ADA)-compliant units. The formerly
public housing is now owned and managed by private entities
committed to maintaining quality affordable housing. The bank also
provided funding for supportive services including referrals to
case management, mental health and substance abuse, and other
services. For more information on CDB’s RAD capabilities, click
here.
Other significant projects that closed in 2016 include:
- St. Albans Cycle of Life – A
combination of a $13.6 million construction loan and $17.8 million
in low-income housing tax credits helped finance 67 affordable
housing units for families in Queens, N.Y. The bank also arranged
$4.4 million in permanent financing. This new construction, green
project is the first affordable family development built in the St.
Albans community in 20 years.
- N. Street Village – In
Washington, D.C., the bank provided an $8.5 million tax-exempt
construction loan and $4 million in permanent debt financing for
the redevelopment of 95 units of affordable multifamily and
supportive housing for homeless and low-income individuals and
families. In 1994, the bank provided the initial debt and equity to
renovate an abandoned building that became N. Street’s
headquarters, where they have provided supportive services, shelter
and low-income housing.
- Maime D. Lee – Two charter
schools and a community health facility comprise this Washington,
D.C., project for which the bank provided $24.2 million in
construction and mini permanent debt financing for new construction
and renovation of this 80,000-square-foot facility. Maime D. Lee
created 700 new charter school seats, and the health center will
service 15,000 dental and medical patients in its first year.
- Lotus Village – Nearly $11
million of new markets tax credits from the bank helped fund new
construction for a 100,000-square-foot comprehensive homeless
services facility for families, women and children in Miami. It
will consist of a shelter with 140 units for up to 500 women, youth
and children; a wellness center, including therapy rooms, daycare
and playground; a neighborhood health clinic; a working classroom
kitchen; a salon; an art and activities lab; a yoga and meditation
room; and a pavilion, dining and social activities.
“Our goal is to provide our clients the right combination of
financial tools to best serve the individual needs of their
projects,” said Maria Barry, Bank of America Merrill Lynch
Community Development Banking executive. “In 2016, we expanded our
permanent debt platform to include a number of proprietary
long-term financing products to provide our clients seamless
execution.”
In 2016, CDB celebrated the 25th anniversary of its Bank of
America Merrill Lynch Low-Income Housing Challenge (LIHC). The LIHC
has continued its goal to inform, educate and attract the next
generation of affordable housing professionals. Teams included
undergraduate and graduate students from eight universities in
California, Washington, Oregon, Arizona and New York. The LIHC has
resulted in actual housing developments based on proposals created
during the competition, fostering future talent while supporting
CDB’s commitment to providing quality, affordable housing.
The bank gained momentum on its Federal Housing Administration
(FHA) multifamily lending platform in 2016, underwriting a variety
of transactions across the country, with a significant
concentration along the East Coast. The bank has been
successfully pairing its FHA execution with Low-Income Housing Tax
Credit (LIHTC) equity and equity bridge loans to provide a
streamlined execution for borrowers.
“We deliver the full capabilities of the bank to our clients to
help create sustainable solutions that promote healthy and thriving
communities,” said Barry. “In 2016, we streamlined our delivery,
made strategic hires and expanded our existing financial offerings
to offer innovative solutions for our clients.”
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 2016,
BACDC was a development partner in affordable housing projects with
a total cost of $159 million, including $39 million in completed
projects, $73 million under construction and more than $47 million
in new developments.
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Reporters May Contact:Anu Ahluwalia, Bank of America,
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