Community Development Banking

Private capital for public good:
Using tax credits to help transform
Neighborhoods

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Community Development Banking

Revitalizing communities through
New Markets Tax Credits

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Community Development Banking

Charlotte-Mecklenburg Housing Partnership:
Creating Affordable Housing Opportunities
in Charlotte

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Community Development Banking

Low Income Housing Challenge:
Supporting the Next Generation of
Affordable Housing Leaders

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Community Development Banking

A Place to Call Home:
The Arker Companies' commitment
to affordable housing

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Overview

Whether you're involved in affordable multifamily and single-family housing; community facilities, such as charter schools; or mixed-use commercial, retail and residential developments, we deliver loans and investments to help mold the building blocks of healthy communities. Our extensive track record, specialized knowledge and financial strength enable you to access the right solutions for your needs, including:

  • Loans to build and preserve housing

  • Term loans for permanent financing

  • Tax-exempt bond financing

  • Government funding programs for affordable housing and economic development

Tax Credits

As a market leader in community development, Bank of America Merrill Lynch is committed to providing integrated financial solutions to strengthen the fabric of the communities where we do business.  Bank of America Merrill Lynch's community development team includes hundreds of dedicated associates nationwide who identify, underwrite and close investments in properties located throughout the United States.

Low Income Housing Tax Credits

Bank of America Merrill Lynch is committed to making an impact through investments in affordable housing and strives to:

  • Support projects that contribute to the revitalization of neighborhoods, stabilize and preserve communities, create jobs through economic development, support environmentally sustainable business activity, and provide quality affordable housing for low- and moderate-income households.

  • Create and rehabilitate affordable housing units for individuals and families with income levels at or below 60% area median income.

  • Form long-term partnerships with developers that participate in the provision of new affordable housing units where they are lacking, and that rehabilitate detrimental and deteriorating projects into neighborhood assets.

  • Offer a comprehensive array of financial products and services, including tax credit investments, construction and permanent financing, FHLB AHP loans and grants, private placement bonds, bond underwriting, derivative products and specialized deposit products.

  • Coordinate delivery of financial products and services, creating seamless, efficient execution with one underwriting and closing process.

View fact sheet » (PDF)

Historic Tax Credits

Our commitment to making an impact through targeted equity investments using historic tax credits illustrates our dedication to finding solutions to improve and revitalize the communities we serve. Our goal is to:

  • Create housing and commercial developments of strategic importance

  • Preserve the heritage of older, important historic buildings

  • Stabilize older, deteriorating neighborhoods by providing capital to catalyze development

  • Convert buildings that are detrimental to neighborhoods into valuable assets

  • Provide a larger and stronger tax base to the community

  • Generate new jobs as a direct result of these revitalization efforts

View fact sheet » (PDF)

New Markets Tax Credits

Bank of America Merrill Lynch is committed to making an impact through targeted investments in low-income communities and strives to:

  • Generate permanent full-time jobs with opportunities for advancement for low-income individuals

  • Provide vocational training for low-income individuals

  • Bring goods and services to underserved communities

  • Develop community facilities that provide educational, cultural, and recreational programming for residents of low-income communities

View fact sheet » (PDF)

Community Development Banking Products & Solutions

As a nationwide leader in community development, Bank of America Merrill Lynch delivers innovative, full-service lending solutions and services for affordable housing developments, community facilities and mixed-use commercial, retail and residential real estate projects coast-to-coast.

Real estate development professionals can access a wide array of specialized products and services designed to meet the challenges of financing neighborhood revitalization.

Special Bond Offering

The Bank of America Merrill Lynch Special Bond Offering is a tax-exempt, private placement bond product that features a combined construction and term debt facility that can be used for a wide range of bond-financed Low Income Housing Tax Credit (LIHTC) projects. The Special Bond Offering provides:

  • Single closing for construction and term loans

  • Simpler, more efficient and less expensive execution with direct placement

  • Fewer fee-based services required to close

  • Option for draw down bond structure, which eliminates negative arbitrage and can increase effective proceeds

  • Variable rate during construction

  • Fixed or variable rate during term phase (variable with interest rate protection product)

  • Ability to bridge Low Income Housing Tax Credit equity

  • Interest rate protection products offered by Bank of America Merrill Lynch Global Derivative Products

  • Re-investment vehicles for fully-drawn bond proceeds

View fact sheet » (PDF)

End-to-End Taxable Term Loan

Bank of America Merrill Lynch's taxable term loan product, the End-to-End Taxable Term Loan, offers fixed-rate, long-term amortizing loans for affordable multifamily housing undergoing new construction or acquisition/rehabilitation, delivered in a single, efficient execution with our construction loan capabilities. We offer distinct advantages, including:

  • Prompt, predictable approvals because Bank of America Merrill Lynch originates both construction and term facilities — with no need for third-party approvals or waivers

  • One-stop commitments for construction and permanent financing

  • Competitive underwriting limits, fee and rates

  • Forward rate locks

  • Access to separate construction loans from Bank of America Merrill Lynch to eliminate negative arbitrage, as well as to term-only loans for acquisition financing and refinancing

  • Available to accompany Bank of America Merrill Lynch's 9% (LIHTC) direct equity investment execution

  • A simpler, less expensive alternative to other products

View fact sheet » (PDF)

Construction Financing

For developers of single-family subdivisions or multi-family rental housing affordable to low- to moderate-income households Bank of America Merrill Lynch provides stand alone taxable and tax-exempt construction financing or one-stop shopping for construction and permanent financing through a variety of term debt options.

Affordable Housing Program ("AHP")

Bank of America Merrill Lynch, through its memberships in the Federal Home Loan Bank System, regularly accesses community investment programs on behalf of our clients to obtain grants that support the construction or rehabilitation of multifamily affordable housing.  We have been active participants in the FHLBanks' Affordable Housing Program since 1990 and have received AHP subsidies for hundreds of projects nationwide.  Our AHP specialists provide comprehensive services for community development clients, ranging from technical assistance on applications to the facilitation of disbursements, monitoring and compliance, and other transactions.

Other Financing Solutions

Through its correspondent relationship with Greystone Servicing Corporation, Bank of America Merrill Lynch can provide non-binding term sheets to clients interested in receiving 1) mortgage insurance from the Federal Housing Administration, and 2) mortgage financing through Fannie Mae (FNMA).

Fact Sheets (PDF)

Case Study

Private capital for public good – using tax credits to help

Bank of America Merrill Lynch works with stakeholders to leverage multiple federal, state and local programs; the largest of these are the Low Income Housing, New Market and Historic Tax Credit programs. We apply our capital and expertise to their vision, creating public and private partnerships that start with local needs. In San Francisco, we partnered with some truly innovative and visionary developers. Our mission is to understand the unique needs of every city, town, neighborhood in which we do business, and to apply our expertise and our capital to realize that community's vision for a better future.

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