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BANK OF AMERICA MAKES RECORD-BREAKING AFFORDABLE HOUSING INVESTMENT ANNOUNCEDS $70 MILLION FOR EQUITY FUNDS IN WESTERN U.S.

BANK OF AMERICA MAKES RECORD-BREAKING AFFORDABLE HOUSING INVESTMENT
 ANNOUNCEDS $70 MILLION FOR EQUITY FUNDS IN WESTERN U.S.
 SAN FRANCISCO, Dec. 12 /PRNewswire/ -- BankAmerica Corp. (NYSE: BAC) and the Local Initiatives Support Corp. (LISC) today announced the bank will invest $70 million in the production of rental housing for low- income families in California and six other states in the western U.S.
 Representing the largest single equity investment in low-income housing ever made by a U.S. corporation, the $70 million will be made using federally legislated Low Income Housing Tax Credits. It will be placed through the California and National Equity Funds, two of three equity funds operated by LISC, the nation's largest non-profit community development support group.
 Targeted specifically at low-income housing production in the states of California, Arizona, Oregon, Idaho, Nevada, New Mexico and Washington, the funds are expected to produce more than 2,600 units of rental housing for low-income families and individuals.
 "Tax credits are a creative, fiscally responsible tool for generating housing that is affordable to low-income families," said BankAmerica Chairman and Chief Executive Officer Richard Rosenberg. "We are delighted at the opportunity to make this investment, which supports our comprehensive, long-range community reinvestment objectives.''
 BankAmerica Executive Vice President Donald Mullane, who heads the bank's community development department, noted that in addition to creating housing, the investment will help stimulate local economies through the creation of construction jobs and new tax revenues.
 "This will help produce greatly needed housing and strengthen the communities that are ghe bedrock of our nation," he said.
 Paul Grogan, president of LISC, called Bank of America's investment "of great importance to California and the nation. The magnitude of the investment will signal to the national banking industry that investing in low-income housing is a sound fiscal as well as social investment."
 Since 1987, LISC, using its three equity funds (California, National and New York), has raised $269 million from corporations to finance more than 8,400 rental apartments owned and developed by nonprofit, community-based organizations.
 The basis of LISC's equity funds is the Low Income Housing Tax Credit (LIHTC), which provides corporations with federal tax credits in return for their investment in the creation of long-term rental housing for low-income tenants. Originally created by the federal government as part of the 1986 Tax Reform Act, Congress must periodically renew the tax credits. They were scheduled to expire Jan. 1, but Congress extended the credits for six months just prior to its Thanksgiving recess.
 San Francisco Congresswoman Nancy Pelosi, who was one of the leaders in the effort to extend the tax credits, said the Bank of America investment demonstrates the importance of the LIHTC.
 "The tax credits play a vital role in addressing the housing needs of the working poor and the very poor," she said. "I commend the Bank of America for the significant commitment announced today. I am pleased that we were able to extend the LIHTC and will continue my efforts to pass a permanent extension next year.'
 "The private-public partnership we celebrate today provides much more than shelter," added LISC Vice President Anita Landecker. "It's an investment in the rebirth of whole communities, sparking neighborhood revitalization and pride. Block by block, community development groups are rebuilding by providing social services and economic development activities together with their affordable housing strategies."
 Doug Guthrie, president of the National Equity Fund, said BofA's unprecedented support is testament to the wisdom and efficacy of the LISC strategy.
 "Bank of America's investment represents a vote of confidence in the ability of the LISC to manage its equity funds wisely, and in the increasing ability of community development groups to develop and manage their properties in a way that benefits both the residents and the communities they serve."
 -0- 12/12/91
 /CONTACT: Marilyn Katz, 312-944-5706, Russ Yarrow, 415-953-1411, or Susan Anderson, 213-624-2995, for the National Equity Fund/ CO: BankAmerica Corp. ST: California IN: FIN SU:


KD -- NY067 -- 2043 12/12/91 14:59 EST
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Date:Dec 12, 1991
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