Bank of America Community Development Banking (CDB) has provided $7.1bn in debt and equity financing last year to help build strong communities through affordable housing and economic opportunities across the US. This financing helped create and preserve 11,000 housing units for individuals, families, seniors, veterans and the formerly homeless. and those with special needs.
According to a 2023 report (PDF) by the Joint Center for Housing Studies at Harvard University, “millions of households are now priced out of homeownership, grappling with housing cost burdens, or lacking shelter altogether.”
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“The need for affordable housing continues to grow. However, affordable housing developers face the same macroeconomic headwinds challenging other industries – higher interest rates, inflation and supply chain issues,” said Maria Barry, Community Development Banking national executive at Bank of America. “This requires our team to be creative, plan for all scenarios and advise our clients on how to mitigate risk and maximise results.”
Strong partnerships
Whether they do business locally or nationally, affordable housing developers are dealing with rising costs due to interest rate fluctuations, supply chain interruptions and rising construction and insurance costs. The BofA banking team helps clients work through these challenges and maximise the value of their businesses. CDB provides financing, treasury and advisory services to optimise their companies, so developers can focus on their mission of creating much-needed affordable housing.
Focus on families & attainable housing
CDB explores innovative solutions to expand its impact in communities. In 2023, it worked with Enterprise Community Partners to launch a workforce housing fund. This $150m fund will preserve 3,000+ housing units for the “missing middle,” or those earning between 80% to 120% area median income (AMI). These households earn too much to qualify for affordable housing and too little to keep up with rents. The fund has already closed two deals in metro Washington, D.C., and Miami, preserving rental affordability for nearly 500 individuals and families.
Supportive services & healthcare access
CDB has a strong focus on developments that incorporate resident services. This includes access to financial education, and overall health and well-being through programs such as: academic support, jobs readiness, training programmes, family programs, food education, access to healthy food, and other critical supportive services. In 2023, CDB financed 4,500 housing units that incorporated a health component. Though partnerships with hospitals or health service providers, these developments incorporated on-site care dedicated to health and wellness.
CDB is active in all 50 states. Since 2005, it has financed over 287,000 total housing units of which 247,000 are affordable.
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