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.”