Bank of America Merrill Lynch’s financing and equity commitments through community development banking rose significantly through the first half of 2013 than the same time period last year.
From January through June 2013, B of A Merrill Lynch provided more than $1.6 billion in loans, tax credit equity investments and other real estate development solutions. Those commitments were double the lending and investing for the same period in 2012 and will create more than 6,500 affordable housing units.
Activity by community development banking in the first half of 2013 included approximately $1 billion in commercial real estate based lending, which is 67% more than the $600 million done a year ago.
Additionally, B of A Merrill Lynch made more than $664 million in tax credit investments, more than double what was invested during the first half of 2012.
“Demand for affordable housing, charter schools and other community development projects remains strong. 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,” said Maria Barry, community development banking executive at
Bank of America Merrill Lynch provided financial solutions for developments that benefit low- and moderate-income families, seniors, veterans, students and other groups nationwide. Loans and investments also include supportive housing projects that incorporate green and transit-oriented elements.
For example, $16.1 million was committed towards 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 Los Angeles residents.
Another example in how the funds were distributed took place in Washington, where at least $12 million in loans and $18 million in new market tax credit investments were given for Washington Latin Public Charter School which is renovating a former public school into a new campus for its middle and high school programs.
Currently, the charter school operates in three separate leased sites, including a church basement. But with the funds, the new campus will be accessible in one site and will also include athletic fields and space to build a gym.
Bank of America Merrill Lynch also is providing approximately $15.2 million in loans and nearly $24.7 million in low income housing tax credit investments for the Joe Moretti Apartments in Miami to construct a 13-story building that will have 116 apartments for senior residents at or below 60% of area median income.
“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, which is developing the Miami complex. “Through this financial support, seniors will have high-quality homes close to public transportation, neighborhood shopping and entertainment.”
