Bank of America and the city of Detroit today announced the bank’s investment of $3 million toward its mission of helping homeowners and small-business entrepreneurs. Additionally, the bank unveiled another $2.5 million in support of Detroit’s neighborhoods.
The announcement was made at Detroit Sip, a Motor City Match recipient located in the city’s Livernois-McNichols neighborhood, an area that has also seen significant investment through Invest Detroit.
Since 2009, Bank of America has steadily invested $30 million to advance economic mobility and build stronger communities and neighborhoods throughout the city of Detroit in a variety of ways. For example, Bank of America’s assistance for homeowners is available through such programs as the 0% Interest Home Repair Program, which offers homeowners loans at zero interest that can be used to fix up their houses; the Community Homeownership CommitmentTM which offers down payment assistance grants and additional credits to help homebuyers; and Motor City Match, which gives grants to entrepreneurs and helps them find suitable buildings in which to locate their businesses. The bank is also supporting youth employment, adult workforce training, economic mobility, and financial literacy programs so that multiple resources exist for Detroit residents at many stages of life. Bank of America employees are dedicated to the city, as evidenced by the 20,000 volunteer hours and over $1 million in matching grants they contribute to Detroit each year.
“Detroit’s comeback cannot succeed unless it includes its neighborhoods,” Mayor Mike Duggan said. “That’s why these programs supported by Bank of America are so vitally important. They are helping longtime Detroiters participate in the city's recovery by helping them start their own business, purchase a new home or renovate the home they've lived in since long before our city's comeback began."
It is because of this impact and resurgence in the community that Matt Elliott, Michigan market president at Bank of America, also announced today an additional investment of $1.5 million in the 0% Interest Home Repair Program and a $1 million operating grant to Invest Detroit to support its expansion of the Strategic Neighborhood Fund and Affordable Housing Leverage Fund, which, in partnership with the city of Detroit, has seen a commitment of $35 million this year from corporate partners for improving parks, streetscapes and single-family housing.
“Bank of America is committed to investing in the people, places and projects that move Detroit forward. Our neighborhood strategy is providing support that spurs economic mobility for individuals and families,” Elliott said. “This foundation grant and the business investments we’ve made to support entrepreneurship, create jobs and make homeownership more attainable are helping to drive economic mobility and strengthen Detroit now and for future generations.”
The 0% Interest Home Repair Program is administered by Local Initiatives Support Corporation (LISC), and has helped more than 500 families since its launch in 2015. The program offers 10-year, interest-free loans from $5,000 to $25,000 to help Detroit homeowners invest in and repair their homes – promoting public health and safety, increasing property values, and helping residents secure and maintain homeowners insurance. Residents pay back only what they borrow. For more information, visit www.detroithomeloans.org.
“Since 2015, the 0% Interest Home Repair Program has been a game changer for Detroit residents giving them an opportunity to improve their homes while helping to stabilize neighborhoods across the city,” said Tahirih Ziegler, executive director of Detroit LISC. “Support from Bank of America has empowered Detroiters to not only reaffirm their commitment to homeownership in the city, but to also improve their daily lives in a way that means so much to them.”
Through the Down Payment Grant program, Bank of America gives eligible buyers 3 percent of the home purchase price, up to $10,000, to be used as a down payment, with no repayment necessary. Qualified buyers may also be eligible for the bank’s closing grant program, a lender credit through which they could receive up to $7,500 for non-recurring closing costs, or in some instances, to buy down their interest rate. To apply, residents can visit bankofamerica.com/firsthome.
The $1 million grant to Invest Detroit will go toward funding operations, such as administering the Strategic Neighborhood Fund, as well as small business and real estate loan programs investing in Detroit neighborhoods and local developers and business owners.
“As we expand our work into more neighborhoods through the Strategic Neighborhood Fund and other Invest Detroit programs, it is crucial that we also expand our capacity. This level of operating support from Bank of America helps to ensure that we can deliver, and its impact on our work and organization cannot be understated,” said David Blaszkiewicz, president and CEO of Invest Detroit.
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 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,400 lending centers, 2,600 financial centers with a Consumer Investment Financial Solutions Advisor and 1,900 business centers; approximately 16,600 ATMs; and award-winning digital banking with nearly 38 million active users, including approximately 29 million mobile 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 owners 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 approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
LISC, the Local Initiatives Support Corporation, is a national nonprofit organization that works to strengthen neighborhoods through affordable housing, better education, health, safety and economic growth. LISC has more than 27 years of experience working as a catalyst for community reinvestment in Detroit. It helps resident-led, community-based development organizations transform distressed neighborhoods into health places to live, work, worship, do business and raise families. Since 1990, Detroit LISC has invested over $245 million which has leveraged $1.2 billion in revitalization efforts in Detroit, financing the creation of over 6,200 units of affordable housing and the development of over 2.9 million square feet of commercial, retail and community space.
Invest Detroit is a nonprofit lender, investor, and partner that supports business and real estate projects that will ignite economic growth in Detroit and the region. Their goal is to increase density and job opportunities in a way that is strategic and inclusive. Learn more at www.InvestDetroit.com.
Reporters May Contact:
Dan Austin, Van Dyke Horn Public Relations
Diane Wagner, Bank of America