Company’s Investment in Affordable Housing Totals $560 Million, 2,400 Units Since 2016; Builds on $5 Billion Down Payment Assistance Program Announced in April 2019
Bank of America today announced it has invested more than $131 million this year in affordable housing in Greater Washington, D.C., bringing the total to $560 million in debt and equity financing since 2016. The bank’s most recent investment was on display at a groundbreaking for Randle Hill, a 195-unit affordable multifamily housing development in the Congress Heights neighborhood, for which the bank has invested $41.5 million in debt and equity with the Enterprise family of companies and Community Preservation and Development Corporation (CPDC). Over the last four years, Bank of America has helped create 2,400 affordable housing units in D.C., suburban Maryland and northern Virginia.
“Our 2,500 teammates who call the DMV home work every day to help drive economic growth and generate economic mobility,” said Larry Di Rita, Greater Washington, D.C. market president for Bank of America. “Bank of America has been serving this community for more than 200 years, and these investments are helping bring the power of homeownership within reach for the next generation of our neighbors.”
Bank of America’s more than $131 million investment in Greater D.C. this year includes more than $56 million in debt and equity capital investments. The bank also serves as the administrative agent on a $75 million line of credit to the Washington Housing Initiative Impact Pool. Managed by JBG SMITH, the Impact Pool provides low-cost loans to acquire and develop affordable workforce housing.
“We are thrilled to partner with Bank of America in the Impact Pool. In order to have a major impact on housing affordability, we need solutions that invest private capital at scale,” said AJ Jackson, executive vice president of Social Impact Investing for JBG SMITH. “Having a leader such as Bank of America invested in the Washington Housing Initiative will help put a spotlight on the important work we are doing to ensure that working people have a place to call home in our region.”
JBG SMITH is a leading owner and developer of high-quality, mixed-use properties in the Washington, D.C. market. The Impact Pool is a social impact investment vehicle of the Washington Housing Initiative, a partnership between JBG SMITH and the Federal City Council that launched in May 2018, which uses private capital to help address housing scarcity for middle-income families. The program expects to preserve or build between 2,000 and 3,000 units of affordable workforce housing in the Washington metro area.
In April 2019, Bank of America also announced a $5 billion Community Homeownership Commitment. The program includes down payment grants up to $10,000 for qualified buyers in select markets, innovative low down payment mortgages, grants up to $7,500 that can be applied to non-recurring closing costs, a national network of dedicated lending professionals, easy-to-understand financial education tools, strategic partnerships with real estate professionals, and a national network of knowledgeable affordable housing nonprofit partners who provide in-depth homebuyer education and counseling.
