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Bank of America Reports on Community Development Activity

By Donna Kimura

Bank of America reported providing $168.2 billion in community development lending and investing, including $147 billion in affordable housing, during the first year of a 10-year community development goal.

The bank initiated its $1.5 trillion goal in 2009, focusing on four key categories: affordable housing, small businesses, consumer lending, and economic development. The goal also includes $50 billion to underserved rural and Native American communities.

The $147 billion in affordable housing during the first year includes low- and moderate-income and minority single-family mortgages; loan modifications to existing mortgages; and financing for predevelopment, construction, and term and equity financing for single-family and multifamily housing that is affordably priced or located in low- and moderate-income communities.

Bank of America officials cited several examples of their activities, including providing more than $18 million in construction financing and low-income housing tax credit equity for Boston’s Olmstead Green, which is being built to Leadership in Energy and Environmental Design and Energy Star standards and will provide 50 units for low-income families and disabled individuals. It also provided $40 million to the YWCA of Greater Los Angeles to build a 60,000-square-foot commercial and residential facility in downtown to house the Los Angeles Job Corps and Urban Job Corps Campus.

Looking at activity by state, California received the largest amount, more than $54.8 billion, including nearly $51 billion for affordable housing.

Florida followed with about $10.7 billion in lending and investment, including $9.1 billion for affordable housing. Texas received nearly $7.5 billion in lending and investment, with $5.8 billion going toward affordable housing.

Los Angeles was the top market, receiving $12.8 billion in lending and investment. Washington, D.C., and California’s Inland Empire each received approximately $6.1 billion.