Bank of America Merrill Lynch Provided More Than $1.6 Billion in Community Development Lending and I
Bank of America Merrill Lynch Provided More Than $1.6 Billion in Community Development Lending and Investing in the First Half of 2013
Financing and Equity Commitments Through Community Development Banking Were up Significantly From 2012, Will Help Create More Than 6,500 Affordable Housing Units Across the U.S.
CHARLOTTE, N.C.--(BUSINESS WIRE)-- Through its Community Development Banking business, 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. Those commitments were double the lending and investing for the same period in 2012 and will help create more than 6,500 affordable housing units.
Working closely with organizations that help revitalize communities, Bank of America Merrill Lynch provided financial solutions for 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.
The first-half 2013 activity by Community Development Banking included roughly $1 billion in commercial real estate-based lending, up 67 percent from $600 million a year ago. Bank of America Merrill Lynch also made more than $664 million in tax credit investments, more than double the nearly $252 million invested during the same period in 2012.
"As these big increases in loans and investments show, demand for affordable housing, charter schools and other community development projects remains strong," said Maria Barry, Community Development Banking executive at Bank of America Merrill Lynch. "By working with others who are dedicated to improving neighborhoods, Bank of America Merrill Lynch is proud to build on its long-standing leadership in community development and help create even more homes for people in need."
This year's commitments include $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. The New Pershing project is being developed by the Skid Row Housing Trust, which operates more than 1,500 units of permanent supportive housing for some of the poorest residents of Los Angeles.
"The New Pershing will provide much-needed supportive housing for our city's most vulnerable residents and allow us to preserve a historic and architectural jewel that enhances a downtown neighborhood," said Mike Alvidrez, executive director of Skid Row Housing Trust. "We value our relationship with Bank of America Merrill Lynch, which will enable us to preserve the historic façade of this building while creating new apartments and ground-level retail space."
In Washington, D.C., Bank of America Merrill Lynch 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.
"This development is vital for the continued growth of Washington Latin Public Charter School, and we appreciate the support of Bank of America Merrill Lynch in moving forward with this significant effort," said Martha Cutts, head of Washington Latin Public Charter School. "Along with our unique curriculum, diverse enrollment and excellent faculty, this new campus will be a major asset for our thriving school."
Bank of America Merrill Lynch also is 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," said 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."
Bank of America Merrill Lynch is a leader in affordable housing finance nationally, providing financing for more than 114,000 units over the past eight years. Community Development Banking includes the Banc of America Community Development Corp., which serves as a development partner and provides debt and equity financing for properties in low- and moderate-income communities across the country.
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