Bank / Credit Union

Bank of America invests $150M into affordable housing

Image via Adobe Stock

January 30, 2023

Bank of America will invest up to $150 million in equity for more than 3,000 affordable homes for middle-income households. The bank will work with Enterprise Community Partners on this endeavor, according to a press release.

Home prices have risen significantly, by 20.6% in between March 2021 and March 2022, according to Harvard University's 2022 State of the Nation Housing report. Bank of America aims to help address this issue by preserving affordable housing.

"As rent costs outpace income growth, the continued lack of affordable housing inventory is forcing families to make difficult decisions on how and where they live," Maria Barry, national executive Bank of America Community Development Banking, said in the release. "This fund will focus on the "missing middle," which refers to middle income individuals who make too much money to qualify for subsidized housing but make too little to afford market rate housing in their community."

"Preserving affordable housing for middle-income households is more critical today than ever as our country faces the worst housing shortage in generations," Lori Chatman, interim co-CEO of Enterprise Community Partners, said in the release. "Through our work with Bank of America, we are able to fill a gap to creatively finance projects that will preserve the supply of affordable homes and build resilience and upward mobility for thousands of families."