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:
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.
Other significant projects that closed in 2016 include:
“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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