Solutions to Los Angeles' affordability crisis have been hurled from all directions. While we have seen several different solutions, the real estate community maintains that more development is the key to creating more affordable options. But, building affordable housing is not an easy feat without the help of banking programs. The agencies have been the biggest provider of funding for affordable projects, but The Bank of America Merrill Lynch Community Development Banking—which had a record-breaking year in 2017—is making a substantial impact in Los Angeles.
“In 2017, Bank of America Merrill Lynch provided commitments for over $329MM in construction loans, permanent debt, and equity investments to develop over 600 affordable housing units in the Los Angeles Metro Area,” Sindy Spivak, Community Development Banking Market Executive, Bank of America Merrill Lynch, tells GlobeSt.com. “Our commitments directly benefit some of the most vulnerable residents and our communities are stronger and thrive when all residents have access to quality affordable housing and needed services.”
The major projects in Los Angeles under the program include phase I of Jordan Downs, Paul Williams Project and phase II of Metro Villas. These three projects broker ground last year, and total 275 units. Bank of America provided construction financing and tax credit investment for the three development projects.
Located in Watts, the Jordan Downs project is aimed at revitalizing the neighborhood. “[The funding will] help transform the Watts neighborhood of Los Angeles with the rehabilitation and revitalization of Jordan Downs, a 1950's-era public housing development,” says Spivak. Phase 1A is the first phase of a 10-year six phase project, and will rebuild 114 affordable housing units.”
The Paul Williams project is located in South Central L.A., and will repurpose a former funeral home. “[Bank of America's funding will] preserve and repurpose the historic Angelus Funeral Home in South Central LA designed by the famous African American architect Paul Williams in the 1930's,” adds Spivak. “The project preserves an important part of the historic fabric community while providing 41 new affordable family housing units.”
Metro Villas is also located in Los Angeles, and was the first Measure HHH transaction in the city. “Bank of America provided construction financing and tax credit investment through National Equity Fund, as syndicator, to finance the first HHH bond measure transaction in the city of Los Angeles,” explains Spivak. “When complete this development will include 120 permanent supportive units for the homeless and designated as a TOD project. The project is adjacent to the PATH Mall with supportive services in the Silver Lake neighborhood.”
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Kelsi Maree Borland
