MIAMI—Bank of America Merrill Lynch provided more than $1.6 billion in loans, tax credit equity investments and other real estate development solutions in the first half of 2013. The institution reports those commitments, made through its through its Community Development Banking business, doubled the lending and investing of the year-ago period—and will help create more than 6,500 affordable housing units.
Specifically, the first-half 2013 activity included roughly $1 billion in commercial real estate-based lending, up 67% from $600 million a year ago. The institution also made more than $664 million in tax credit investments, more than double the nearly $252 million invested during the same period in 2012.
BofA worked closely with various organizations that help revitalize communities. The financial solutions targeted developments that benefit low- and moderate-income families, seniors, veterans, students, and other groups across the country. Loans and investments also include supportive housing efforts and projects that incorporate green and transit-oriented elements.
“As these big increases in loans and investments show, demand for affordable housing, charter schools and other community development projects remains strong,” says Maria Barry, Community Development Banking executive at BofA. Barry said the institution is committed to “help create even more homes for people in need.”
BofA pointed to commitments like its $16.1 million in construction financing and $16.2 million in indirect tax credit equity to develop 69 studio units for formerly homeless people in the Skid Row neighborhood in Downtown Los Angeles. Skid Row Housing Trust is developing the New Pershing project, which operates more than 1,500 units of permanent supportive housing for some of the poorest residents of Los Angeles.
BofA is also providing more than $15.2 million in loans and nearly $24.7 million in Low Income Housing Tax Credit investments for the Joe Moretti Apartments in Miami. Related Urban is developing a new 13-story building that will have 116 apartments for senior residents at or below 60 percent of area median income (AMI).
“The Joe Moretti Apartments will help address a significant need for convenient, affordable senior housing in this community, and Bank of America Merrill Lynch is playing a vital role in making this development a reality,” says Alberto Milo Jr., senior vice president and principal at Related Urban. “Through this financial support, seniors will have high-quality homes close to public transportation, neighborhood shopping and entertainment.”
In Washington, D.C., BofA is providing more than $12 million in loans and $18 million in New Market Tax Credit investments for Washington Latin Public Charter School, which is renovating a former public school into a new campus for its middle and high school programs. Washington Latin now operates in three separate leased sites, including a church basement, and the new campus also will include athletic fields and space to build a gym.