Collaborating with Enterprise Community Partners and Developers to Preserve Housing for Middle-Income Earners
NEW YORK, Jan. 23, 2023 /PRNewswire/ -- Bank of America Community Development Banking is investing up to $150 million in equity to preserve more than 3,000 affordable homes nationwide for middle-income households in partnership with Enterprise Community Partners (Enterprise), one of the nation's largest affordable housing organizations.
Bank of America and Enterprise will help working Americans across the country earning between 80% and 120% of area median income remain in housing they can afford. According to the Pew Research Center, about half of Americans (49%) said this was a major problem where they live, up 10 percentage points from early 2018.
"As rent costs outpace income growth, the continued lack of affordable housing inventory is forcing families to make difficult decisions on how and where they live," said Maria Barry, Bank of America Community Development Banking national executive. "This fund will focus on the "missing middle," which refers to middle income individuals who make too much money to qualify for subsidized housing but make too little to afford market rate housing in their community."
According to Harvard University's 2022 State of the Nation's Housing report, home prices rose 20.6% from March 2021 to March 2022 and rents jumped 12%, showing that unaffordability worsened even further in the past two years.
Both Enterprise and Bank of America will leverage their national networks and resources to help accelerate the preservation of affordable housing.
"Preserving affordable housing for middle-income households is more critical today than ever as our country faces the worst housing shortage in generations," said Lori Chatman, interim co-CEO of Enterprise Community Partners. "Through our work with Bank of America, we are able to fill a gap to creatively finance projects that will preserve the supply of affordable homes and build resilience and upward mobility for thousands of families."
This fund builds on Bank of America and Enterprise's partnership spanning more than 30 years to create and preserve thousands of affordable homes. It will expand the partnership to preserve middle income homes by investing critical equity capital to allow affordable housing providers to acquire existing properties that are at risk of being converted into unaffordable, market-rate homes and preserve their affordability for the long term.
Enterprise has 40 years of experience providing affordable housing solutions, capital and community development – under one roof. For 10 years, Enterprise has managed preservation equity funds, which have preserved more than 17,000 homes nationwide, valued at nearly $2 billion.
Bank of America remains committed to helping address the affordable housing shortage. With innovative capital deployment, like its $15 billion Community Homeownership Commitment, the bank works through its lines of business, partnerships and philanthropic support to help provide safe and affordable housing in the communities where we live and work.
Enterprise Community
Enterprise is a national nonprofit that exists to make a good home possible for the millions of families without one. We support community development organizations on the ground, aggregate and invest capital for impact, advance housing policy at every level of government, and build and manage communities ourselves. Since 1982, we have invested $54 billion and created 873,000 homes across all 50 states – all to make home and community places of pride, power and belonging. Join us at enterprisecommunity.org.
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 3,900 retail financial centers, approximately 16,000 ATM and award-winning digital banking with approximately 56 million verified digital 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.
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
