Bank of America Announces $500,000 Investment in Washington Area Housing Trust Fund
Funds will capitalize loans for affordable housing development
February 8, 2006, Washington, D.C. – Bank of America today announced a $500,000 program related investment in the Washington Area Housing Trust Fund (WAHTF) to spur affordable housing development in neighborhoods throughout greater Washington D.C. The new half million-dollar investment will enable WAHTF to finance affordable housing for more residents of the metropolitan region through predevelopment and other short term loans necessary to secure property in today’s competitive real estate environment. The investment was announced during today’s Board meeting of the Metropolitan Washington Council of Governments (COG).
“As a leader in community development, Bank of America understands the important role of organizations like the Washington Area Housing Trust Fund in deploying capital and expertise to expand economic opportunity in low- and moderate-income neighborhoods,” said Bill Couper, president, Bank of America Greater Washington. “Our program related investments are designed to encourage matching commitments from other lenders and investors, particularly those familiar with the needs of the local markets we serve.”
“The booming housing market has put an affordable home out of reach for many of our region’s working families,” said Peggy Sand, president, WAHTF. “In just three years, with leadership and support from the Council of Governments, the Washington Area Housing Trust Fund has been able to loan approximately $1.4 million to finance the development of 850 units of affordable housing.”
With operating costs covered by 11 area local governments, WAHTF provides financing to developers of both affordable multi-family rental and for-sale housing through predevelopment and early short term loans. Thanks to its innovative funding model, combined with low- or no-interest capitalization, the fund is able to offer loans at substantially below-market interest rates. Currently, the rate is 2 percent. Coinciding with the Bank of America announcement was WAHTF’s approval of its tenth loan.
Additional support for the Washington Area Housing Trust Fund comes from $900,000 in federal grants, support from the Fannie Mae Foundation, and contributions from the Bank of America foundation and other financial service company foundations. Additional information about WAHTF’s history, board, and lending portfolio is available at www.wahtf.org.
Bank of America
Bank of America is one of the world’s largest 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 more than 38 million consumer and small business relationships with more than 5,800 retail banking offices, more than 16,700 ATMs and award-winning online banking with more than 14 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 150 countries and has relationships with 97 percent of the U.S. Fortune 500 companies and 79 percent of the Global Fortune 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
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