BofA Community Development Bank provides $20 million credit facility to Local Initiatives Managed Assets Corp.SAN FRANCISCO--(BUSINESS WIRE)--Sept. 7, 1995--Bank of America Community Development Bank has provided a $20 million credit facility to the Local Initiatives Managed Assets Corporation (LIMAC LIMAC Large Integrated Monolithic Array Computer ), which will help LIMAC maintain a secondary market for affordable housing and community development loans, and help provide new capital for the creation of low-income housing across the country. The $20 million facility will provide financing to expand New York-based LIMAC's capacity to perform as a national secondary market for "bridge equity" loans on low-income housing tax credit The Low Income Housing Tax Credit (LIHTC; often pronounced "lye-tech") is a tax credit created under the Tax Reform Act of 1986 (TRA86) that gives incentives for the utilization of private equity in the development of affordable housing aimed at low-income Americans. projects. "We're delighted to provide this financing package to support LIMAC's pioneering efforts to provide a secondary market for affordable housing loans," said Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. Community Development Bank President Mike Mantle. "In addition to providing LIMAC with a key financing tool, this supports the $50 million commitment made by Bank of America as part of the Community Development Financial Institutions Act of 1994." The Community Development Financial Institutions Act, which took effect on Jan. 1, 1995, was passed by Congress to establish a framework for the start-up Start-up The earliest stage of a new business venture. and expansion of community development financial institutions to promote economic development and affordable housing in low-income communities. Bank of America set a goal of making $50 million in loans, investments and grants to community development financial institutions and other community-based loan intermediaries over the four-year life of the bill. Bank of America Community Development Bank's credit facility will provide LIMAC with the capacity to purchase loans that "bridge" future equity contribution payments from corporate or government-sponsored investors to housing projects assisted with federal Low Income Housing Tax Credits. "It will basically give us the opportunity to expand the capacity and liquidity of nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. community development lenders working to improve the housing stock in distressed communities," said Stephanie Mathews, a LIMAC Senior Vice President. As a creator of a secondary market for affordable housing loans, LIMAC enables institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. to support community development without the need to analyze individual borrowers, projects, or risk of loss on individual loans. By selling loans to LIMAC, community development lenders are able to recycle re·cy·cle tr.v. re·cy·cled, re·cy·cling, re·cy·cles 1. To put or pass through a cycle again, as for further treatment. 2. To start a different cycle in. 3. a. loan funds and increase their lending activity. LIMAC has purchased nearly $45 million in loans from nonprofit lenders since 1988 with no loan losses. It is an affiliate of the Local Initiatives Support Corporation (LISC LISC Local Initiatives Support Corporation (New York, NY) LISC Little Illini Soccer Club (Champaign-Urbana, Illinois) LISC Long Island Subaru Club LISC Laboratory for Intelligent Systems and Controls ), the nation's largest community development support organization. LISC assists local community development corporations nationwide in their efforts to transform distressed neighborhoods into healthy communities. Bank of America has invested more than $120 million in low income housing tax credits with LISC affiliates the California Equity Fund and the National Equity Fund to help finance construction and preservation of low-income housing throughout the U.S. CONTACT: Bank of America Russ Yarrow yarrow, a plant of the genus Achillea, perennial herbs of the family Asteraceae (aster family), native to north temperate regions. Several species are cultivated as ornamentals for their flat-topped clusters of flowers and scented foliage. , 415/953-1411 |
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