Bank of America Community Development Banking Delivers $7.8 Billion in Financing to Underserved Communities

Bank of America has announced that its Community Development Banking (CDB) division has successfully delivered $7.8 billion in financing during the past fiscal year, marking a significant milestone in the bank’s commitment to economic development in underserved areas across the United States.

Record-Breaking Investment in Community Development

The $7.8 billion in financing represents a substantial increase from previous years, demonstrating Bank of America’s growing focus on community investment initiatives. The funds were distributed across various projects aimed at revitalizing economically challenged neighborhoods and providing affordable housing solutions.

“Our Community Development Banking team has worked tirelessly to identify and support projects that create meaningful impact in communities that need it most,” said Maria Sabow, Head of Community Development Banking at Bank of America. “This record financing reflects our commitment to helping build strong, sustainable communities across America.”

Affordable Housing Takes Center Stage

A significant portion of the financing—approximately $5.3 billion—was allocated to affordable housing developments, helping to address the critical shortage of reasonably priced homes in many urban markets. These investments supported the construction and rehabilitation of over 15,000 apartment units nationwide, with a focus on areas experiencing rapid gentrification and rising housing costs.

The bank’s efforts included:

– Financing for 127 new affordable housing developments
– Support for mixed-income residential projects in 34 states
– Rehabilitation funding for aging apartment complexes in urban centers
– Specialized financing for housing developments serving vulnerable populations

Economic Development Beyond Housing

Beyond residential projects, Bank of America’s community development initiatives extended to commercial and economic development projects designed to stimulate job growth and business opportunities in underserved areas.

The bank provided approximately $2.5 billion in financing for:

– Community health centers serving low-income populations
– Educational facilities in economically challenged districts
– Grocery stores and retail developments in food deserts
– Small business incubators in minority communities

Innovative Financing Approaches

Bank of America’s Community Development Banking team utilized innovative financing structures to maximize impact, including:

1. Tax Credit Investments: Leveraging Low-Income Housing Tax Credits (LIHTC) and New Markets Tax Credits (NMTC) to enhance project viability
2. Public-Private Partnerships: Collaborating with government agencies to stretch development dollars
3. Impact Investment Funds: Creating specialized investment vehicles targeting specific community needs
4. Green Financing: Incorporating sustainability elements into development projects

Industry Leadership and Future Commitments

The $7.8 billion in financing solidifies Bank of America’s position as an industry leader in community development banking. The achievement comes as part of the bank’s broader $1.5 trillion Community Development Financial Plan announced last year, which aims to address economic opportunity gaps in underserved communities over the next decade.

“This financing represents more than just dollars—it represents opportunity and access for communities that have historically been overlooked by traditional financial institutions,” commented James Wilson, Bank of America’s Chief Financial Officer. “We’re proud to lead the banking industry in this critical work.”

Looking ahead, Bank of America has announced plans to increase its community development financing target to $8.5 billion for the coming fiscal year, with a particular emphasis on climate-resilient affordable housing and small business development in minority communities.

About Bank of America Community Development Banking

Bank of America’s Community Development Banking provides financing solutions for affordable housing and economic development projects. The division works with a wide range of developers, Community Development Financial Institutions (CDFIs), and nonprofit organizations to create innovative financing solutions that meet community needs while delivering returns for investors.