NYHC SPOTLIGHT PARTNER: Bank of America Merrill Lynch (BAML)
With more than 30 years of experience and expertise, the Community Development Banking team at Bank of America Merrill Lynch provides thoughtful advice and innovative financial solutions to developers of affordable housing and community development projects that revitalize communities through community development lending, tax credit equity investments and real estate development. Bank of America Merrill Lynch is recognized by the industry as one of the largest, most active affordable housing lenders in the U.S. In 2010 Community Development Banking provided more than $1.7 billion to finance more than 11,700 affordable housing units. This activity is part of Bank of America’s 10-year, $1.5 trillion community development lending and investment goal, the largest community development commitment ever made by a U.S. financial institution.
One such project which highlights this commitment to and leadership in affordable housing in New York City is the Dumont Green project in Brooklyn.
DUMONT GREEN PROJECT:
Dumont Green is an 8-story affordable, green living development consisting of 176 units for low income families in East New York, Brooklyn. These studios, one, two and three-bedroom rental apart- ments are for households earning less than 60 percent of the Area Median Income (AMI). Thirty-six units are set aside for the formerly homeless, supported by CAMBA, a Brooklyn based non-profit organization.
Additionally, the project will support long-term operations with renewable energy by incorporating an 80,500-watt solar photovoltaic energy system, the largest to date on a multifamily building in New York City.
“At Bank of America Merrill Lynch, we are committed to supporting affordable housing and revitalizing neighborhoods across the country. Dumont Green represents the transformation of an abandoned site into a dynamic housing community,” said Daron Tubian, Senior Vice President and Head of Credit Products for Community Development Banking at Bank of America Merrill Lynch in New York.
Bank of America Merrill Lynch provided construction period letter of credit financing for $26 million and low income tax credit equity investment of $15.6 million through The Richman Group, as syndicator. Funding partners include the NYC Housing Trust Fund (HTF), NYC Acquisition Fund, a solar rebate from NYSERDA and funding from the Brooklyn Borough President’s Office. NYC Housing Development Corporation issued construction and permanent period tax-exempt bond financing. NYC Housing Preservation and Development provided City Capital funding, as well as HTF funds and HOME funds. The total development cost of Dumont Green was approximately $51 million.