NEW YORK–(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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