Bank
of
First-of-its-Kind
Effort to Create 6,000
Nationally,
the program will create nearly 15,000 new affordable housing units. The Community Impact Loan program is a
first-of-its-kind collaboration between the largest originator of community
development loans in the
“We think this collaboration will have a positive impact on the communities the Impact insurance companies and Bank of America serve,” said Doug Woodruff, Bank of America Community Development Banking president. “We also think it will have a positive impact on the bottom line of all of the companies involved,” Woodruff said.
“Studies have shown that investments structured to meet community capital needs can povide reasonable returns for investors.”
The
Impact insurance companies have made a $475 million three-year national
commitment to provide long-term financing for affordable housing. Bank of
America will provide financing to affordable housing developers through its Community
Impact Loan product. The Community Impact Loan is a combined
construction and permanent \
or term debt facility.
“The Community Impact Loan will provide a reliable source of capital for community investments,” said Woodruff. “They are competitive in terms of pricing, flexibility and efficient execution and provide developers with interest rate certainty in an uncertain environment.”
Impact
was created as a vehicle for insurers to invest in communities in
elsewhere in the
Once the loan program has generated a sufficient volume of loans, Impact will pool them, have the pool rated by a major rating agency and create mortgage-backed securities for its insurance company owner/investors. Impact has developed this format for the securitization of large-scale pools of affordable housing mortgages.
“Impact
is pleased to join Bank of America in a program that will result in major
improvements in communities throughout
Sheehy said the Community Impact Loan program will help drive smart-growth and urban revitalization initiatives through a one-stop access to long-term capital for affordable housing projects.
Impact owners and investors include Allstate Insurance Company, Farmers Insurance Companies, General Electric Capital Assurance Company, Nationwide Mutual Insurance Company, Pacific Life Insurance Company, PMI Mortgage Insurance Company, SAFECO Insurance, State Farm Insurance Companies, Teacher Insurance and Annuity Association, and 21st Century Insurance Company.
“The
housing crisis in
The Greenlining Institute is a public policy research and advocacy organization whose mission is to empower communities of color and other disadvantaged groups through multi-ethnic economic and leadership development, civil rights and anti-redlining activities.
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