Bank of America Merrill Lynch Provides Nearly $4 Billion in Community Development Lending and Investing in 2016

NEW YORK–(BUSINESS WIRE)–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:

  • $2.7 billion in debt commitments, including $36 million in FHA loans.
  • $1.2 billion in new equity investments.
  • 12 green projects, including three LEED-certified properties.
  • 13,200 housing units in 2016; 196,000 housing units since 2005.

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.
For more information on CDB’s RAD capabilities, click here.

Other significant projects that closed in 2016 include:

  • St. Albans Cycle of Life – A combination of a $13.6 million
    construction loan and $17.8 million in low-income housing tax credits
    helped finance 67 affordable housing units for families in Queens,
    N.Y. The bank also arranged $4.4 million in permanent financing. This
    new construction, green project is the first affordable family
    development built in the St. Albans community in 20 years.
  • N. Street Village In Washington, D.C., the bank
    provided an $8.5 million tax-exempt construction loan and $4 million
    in permanent debt financing for the redevelopment of 95 units of
    affordable multifamily and supportive housing for homeless and
    low-income individuals and families. In 1994, the bank provided the
    initial debt and equity to renovate an abandoned building that became
    N. Street’s headquarters, where they have provided supportive
    services, shelter and low-income housing.
  • Maime D. Lee – Two charter schools and a community health
    facility comprise this Washington, D.C., project for which the bank
    provided $24.2 million in construction and mini permanent debt
    financing for new construction and renovation of this
    80,000-square-foot facility. Maime D. Lee created 700 new charter
    school seats, and the health center will service 15,000 dental and
    medical patients in its first year.
  • Lotus Village – Nearly $11 million of new markets tax credits
    from the bank helped fund new construction for a 100,000-square-foot
    comprehensive homeless services facility for families, women and
    children in Miami. It will consist of a shelter with 140 units for up
    to 500 women, youth and children; a wellness center, including therapy
    rooms, daycare and playground; a neighborhood health clinic; a working
    classroom kitchen; a salon; an art and activities lab; a yoga and
    meditation room; and a pavilion, dining and social activities.

“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.

Bank of America
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 46 million
consumer and small business relationships with approximately 4,600
retail financial centers, approximately 15,900 ATMs, and award-winning
online banking with approximately 34 million active accounts and nearly
22 million mobile active 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 in all 50
states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico
and more than 35 countries. Bank of America Corporation stock (NYSE:
BAC) is listed on the New York Stock Exchange.

Bank of America Merrill Lynch is the marketing name for the global
banking and global markets businesses of Bank of America Corporation.
Lending, derivatives, and other commercial banking activities are
performed globally by banking affiliates of Bank of America Corporation,
including Bank of America, N.A., member FDIC. Securities, strategic
advisory, and other investment banking activities are performed globally
by investment banking affiliates of Bank of America Corporation
(“Investment Banking Affiliates”), including, in the United States,
Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a
registered broker-dealer and a member SIPC, and, in other jurisdictions,
locally registered entities. Merrill Lynch, Pierce, Fenner & Smith
Incorporated and Merrill Lynch Professional Clearing Corp. are
registered as futures commission merchants with the CFTC and are members
of the NFA. Investment products offered by Investment Banking
Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank
Guaranteed.

Visit the Bank of America newsroom for more Bank
of America news
, and click here
to register for news email alerts.

www.bankofamerica.com

Contacts

Reporters May Contact:
Anu Ahluwalia, Bank of America,
1.646.855.3375
anu.ahluwalia@bankofamerica.com