Bank of America Community Development Banking Provides Record $6.6 Billion in Lending and Investing in 2021

Rhea-AI Summary

Bank of America Community Development Banking (CDB) reported a record $6.6 billion in loans and investments for 2021, exceeding the previous year's $5.9 billion. The CDB allocated $4.1 billion in debt commitments and $2.5 billion in investments to promote affordable housing and economic development nationwide. In 2021, over 13,000 housing units were financed, with 90% being affordable. Significant commitments included $1.6 billion for health-related services and $368 million to minority-led developers. CDB also launched a $60 million fund for BIPOC developers as part of a broader $1.25 billion initiative to advance racial equality.

Positive

• Achieved record financing of $6.6 billion in 2021, up from $5.9 billion in 2020.
• Financed over 13,000 housing units in 2021, with 90% categorized as affordable.
• Invested $1.6 billion in projects providing access to health services, enhancing community well-being.
• Allocated $368 million to minority- and woman-led developers, resulting in 1,500 affordable housing units.
• Launched a $60 million fund supporting BIPOC developers to enhance access to capital.

Negative

• None.

NEW YORK, Feb. 9, 2022 /PRNewswire/ -- Bank of America Community Development Banking (CDB) provided $6.6 billion in loans, tax credit equity investments, and other real estate development solutions in 2021, surpassing a previous record of $5.9 billion in financing in 2020.

CDB deployed $4.1 billion in debt commitments and $2.5 billion in investments to help build strong, sustainable communities through affordable housing and economic development across the country.

"The need for affordable housing in communities across the U.S. has continued to grow during the pandemic, and our Community Development Banking team has been there to serve clients through these most uncertain times," said Maria Barry, Community Development Banking national executive at Bank of America. "We remain steadfast in our commitment to advising clients and providing creative financing solutions to help build safe, affordable housing and to supporting the communities where we live and work."

CDB delivers innovative financing solutions to help create affordable housing for individuals, families, seniors, veterans, the formerly homeless, and those with special needs. These efforts are part of the company's commitment to deploying capital to address global issues outlined in the United Nations Sustainable Development Goals (SDGs).

From 2005 to 2021, Community Development Banking financed more than 263,000 housing units, of which 86% (more than 227,000) are affordable housing. 

In 2021, CDB-financed developments produced more than 13,000 housing units, of which 90% (more than 11,600) were affordable housing units. This included:

• 3,200 units for seniors.
• 3,400 units for formerly homeless, veterans or those with special needs.
• 5,500 certified green units.

Last year, CDB provided $1.6 billion to finance 3,300 housing units where developers included access to health-related services such as vaccines and flu shots, wellness exams, nutrition education and mental health assistance. CDB also provided more than $368 million in financing to minority- or woman-led affordable housing developers, which resulted in 1,500 affordable housing units.

In addition, in April 2021, Community Development Banking was the first bank to launch a fund with dedicated financing and support to BIPOC (Black, Indigenous and People of Color) developers. In partnership with Enterprise Community Partners, CDB announced a $60 million investment to support Enterprise's Equitable Path Forward, a five-year initiative to help facilitate racial equality in housing. We are reviewing proposals from minority developers of multi-family, affordable and supportive housing to provide increased access to capital and career development opportunities across the Bank's footprint.  

This commitment complements Bank of America's $1.25 billion, five-year commitment to help advance racial equality and economic opportunity. The work focuses on closing the racial wealth gap in Black and Hispanic-Latino communities with a focus on affordable housing, health and healthcare, jobs/reskilling and small business.

Bank of America Global Corporate and Investment Banking also provided $412 million in tax credit investments, bringing the 2021 total to $7 billion in affordable housing and economic development financing.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,200 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with approximately 41 million active users, including approximately 33 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters may contact:

Anu Ahluwalia, Bank of America       
Phone: 1.646.855.3375
anu.ahluwalia@bofa.com

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SOURCE Bank of America Corporation

FAQ

What was Bank of America's total financing for affordable housing in 2021?

Bank of America provided a total of $6.6 billion in loans and investments for affordable housing in 2021.

How many affordable housing units did Bank of America finance in 2021?

In 2021, Bank of America financed over 13,000 housing units, with 90% being affordable.

What initiatives did Bank of America undertake to support racial equality in 2021?

In 2021, Bank of America committed $1.25 billion to advance racial equality focusing on affordable housing and launched a $60 million fund for BIPOC developers.

How much did Bank of America invest in health-related services in housing projects?

Bank of America invested $1.6 billion to finance 3,300 housing units that included health-related services.