BofA Community Development Banking Provides Record $7.85 Billion in Lending and Investing in 2022
NEW YORK, NY – Bank of America Community Development Banking (CDB) provided $7.85 billion in loans, tax credit equity investments, and other real estate development solutions in 2022, surpassing a previous record of $6.7 billion in financing in 2021. In its sixth consecutive year of record growth, CDB doubled its financing since 2016.
CDB deployed $5.2 billion in debt commitments and $2.7 billion in investments to help build strong, sustainable communities through affordable housing and economic development across the country.
Maria Barry - Bank of America Community Development Banking had its sixth consecutive record year in 2022, providing $7.85 billion in loans, tax credit investments, and other real estate financing solutions. Our commitment helped to build and preserve more than 13,000 housing units across the country.
Part of our success in 2022 was fueled by our California Housing Initiative. We partnered with our local markets organization to double the number of affordable housing units we financed in California.
Since 2019, Sindy Spivak and her West Coast banking team, financed 96 multifamily developments that created over 10,000 units across 15 markets in California. Partnering with our clients, we helped create safe, service-rich, affordable units that will provide individuals and families the opportunity to improve their future health, education and economic outcomes.
Todd Gomez - Even with these successes, 2022 was a challenging year for many in our industry. In the face of high inflation, rapidly increasing interest rates and supply chain disruptions that led to higher-priced building materials and construction delays, our client-focused approach remained at the center of our business strategy.
With more than 35 years in the business, our Community Development Banking team is committed to supporting our clients to meet their development and preservation goals despite macroeconomic headwinds. There is no doubt that our creative financing solutions, strong advisory capabilities and experienced banking team helped our clients navigate unprecedented uncertainty and execute with confidence in 2022.
Maria Barry - We’re looking forward to another great year of building strong, sustainable communities through affordable housing and economic development across the country.
CDB also invested $200 million in Historic Tax Credits (HTC) and New Markets Tax Credits (NMTC). Our investments helped restore historically significant, and often unoccupied buildings; supported new job creation by financing mixed-use community/ health care centers, charter schools and other developments; and created more than 1,300 affordable and market rate housing units.
In 2022, CDB doubled the number of affordable housing units it financed in California since 2019. In that time, CDB has financed 96 multifamily developments that created over 10,000 units across 15 markets in California. These service-enriched affordable units -- in a state with outsized affordability issues -- will provide individuals and families the opportunity to improve their health, education and economic outcomes that are linked to safe, affordable housing.
In April 2021, Bank of America was the first bank to launch a $60 million fund, in partnership with Enterprise Community Partners’ Equitable Path Forward initiative, to support BIPOC (Black, Indigenous and People of Color) developers and to help facilitate racial equality in housing. The fund closed its first deal in December 2022. CDB deployed more than $37 million in debt and equity financing for 3450 Eads in Washington, D.C., which will be developed by Neighborhood Development Company, a minority-owned, mission-driven real estate development and investment company based in D.C.
“In a year of extraordinary uncertainty from interest rates to inflation to supply chain disruptions, our clients relied on our expert advice and creative financing solutions to prepare for the unexpected,” said Maria Barry, Community Development Banking national executive at Bank of America. “We continue to innovate how we drive progress with our goal remaining the same: providing a client-centric approach to help build safe, affordable housing that supports the communities where we live and work.”
Many of the developments CDB financed in 2022 will include service-enriched programs to help position residents for success, including: community building activities, after-school programs for youth and family counseling; training programs, such as Better Money Habits®, resume workshops, computer training, job training and placement programs, small business coaching, and homebuyer seminars; and health and wellness programs such as health screenings, vaccination clinics, addiction recovery resources and nutrition programs.
From 2005 to 2022, Community Development Banking financed more than 276,000 housing units, of which the majority were affordable housing.
In 2022, CDB helped finance more than 13,000 housing units, including over 10,000 affordable housing units. Among them were:
With its continued commitment to support racial equity and economic opportunity, CDB provided more than $630 million to minority- or women-led developers that resulted in the production of more than 1,900 housing units in 2022.
Bank of America Global Corporate and Investment Banking also provided more than $550 million in tax credit investments, bringing the 2022 total to $8.4 billion in affordable housing and economic development financing.
CDB delivers innovative financing solutions to help create affordable housing for individuals, families, seniors, veterans, the formerly homeless, and those with special needs. These efforts are part of the company’s commitment to deploying capital to address global issues outlined in the United Nations Sustainable Development Goals (SDGs).
Bank of America remains committed to helping address affordable housing in many ways. With innovative capital deployment, such as $15 billion Community Homeownership Commitment, the bank works through its lines of business, partnerships and philanthropic support to help provide safe and affordable housing. In 2022, the bank also supported affordable housing with $25 million in grants from the Bank of America Charitable Foundation.
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 68 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 56 million verified digital 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 households 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 is listed on the New York Stock Exchange (NYSE: BAC).
Anu Ahluwalia, Bank of America