Bank of America Merrill Lynch Community Development Banking provided more than $3.2 billion in loans, tax credit equity investments and other real estate development solutions to over 550 clients in 2014, creating more than 13,000 housing units for individuals, families, seniors, students, veterans and other at-risk groups across the country.
This effort included:
- A range of innovative financial solutions for developments, many of which incorporate green and transit-oriented elements.
- Nearly $2 billion in commercial real estate-based lending.
- More than $1.1 billion in tax credit investments.
- More than 140,000 affordable housing units over the past 10 years.
Some significant projects that closed in 2014 include:
- Developed by OMNI NY, 655 Morris Ave. is a mixed-income, mixed-use housing revitalization development in the Bronx, N.Y., which consists of a 176-unit apartment building, with 20 percent designated for formerly homeless individuals. The bank financed a $32 million construction period letter of credit and a $21 million tax credit equity investment via Alliant Capital, Ltd.
- Legends South Phase III consists of 66 units in 11 newly constructed buildings, providing public, affordable and market rate housing for families and young professionals in Chicago. The bank provided Michaels Development $12.6 million in debt and $15.6 million in federal low-income housing tax credit (LIHTC) equity. This is the third phase of a large-scale redevelopment of a former public housing site with 549 units already completed in the earlier phases.
- In Hopewell, Va., the bank provided Community Housing Partners a $6.5 million construction loan, $6.6 million in direct equity and $1.5 million standby Federal Housing Administration (FHA) forward commitment. They financed the demolition and replacement of a 30-unit public housing development, Langston Apartments, with 56 new affordable family units and offer financial literacy and self-sufficiency courses as part of their supportive services.
- In Long Beach, Calif., the bank helped finance Long Beach & 21st Senior Apartments. The 41-unit building will serve special-needs seniors (homeless or at risk of being homeless) and median-income seniors. Meta Housing Corp. obtained a $12 million construction loan and $13 million in equity from the bank to fund this project.
- Cicero & George Senior Apartments will provide a 70-unit new construction LIHTC development for seniors 55 and older in Chicago. Sponsored by the Hispanic Housing Development Corp., the project’s financing included a $9.5 million construction loan commitment and a $12.3 direct tax credit investment by the bank.
- The bank worked with Volunteers of America on Blue Butterfly Village, financing the rehabilitation of a 76-unit townhome-style development in San Pedro, Calif. The $13 million construction loan, $1 million AHP grant and $17 million indirect equity investment upgraded housing for low-income veteran and homeless households, with a portion of the units designated for tenants in mental health services programs.
- The bank provided a $22 million direct LIHTC investment and a nearly $18 million construction loan for the rehabilitation of 105 supportive units at the Franciscan Towers in San Francisco. Owned and managed by the Tenderloin Neighborhood Development Corp., the development provides safe, supervised drop-in space to play and learn for more than 250 five- to 18-year-olds. It also has 35 units designated for the formerly homeless.
- The bank helped DC Preparatory Academy in Washington, D.C. with $12.7 million in new markets tax credit (NMTC) equity and $14.8 million in NMTC debt loans for acquisition of a campus, renovation of the existing elementary school and construction of a new middle school. The school was able to increase the number of preschool to eighth grade students served from 506 to 711 and create 32 new staff positions.
- The Somerset Academy, Losee Campus, is a public charter school in Las Vegas. The bank provided developer Turner-Agassi $14.5 million in construction and mini-perm credit facilities that will be used to construct the high school, allowing the school to serve 2,320 students from kindergarten to 12th grade.
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 2014, BACDC completed more than $55 million in developments and began construction on more than $83 million in developments.