Published Oct. 31, 2013
The funding will be used in the trust’s Revolving Loan Fund to create affordable homeownership opportunities throughout its service area. This is the bank’s first investment in the trust.
As a U.S. Treasury-certified Community Development Financial Institution, the Lowcountry Housing Trust is able to receive low interest rate loans from financial institutions, foundations, businesses and high-wealth individuals and provide both a social and financial return on that investment.
“Bank of America’s investment demonstrates its continued commitment to South Carolina and to helping residents realize their dream of homeownership,” trust Executive Director Michelle Mapp said in a news release. “... We will leverage this investment to provide further affordable housing options for local communities.”
Investors receive quarterly interest payments and repayment of their principal upon the loan’s maturity, and low-wealth communities gain access to needed capital to fund critical development projects.
“This $1 million investment, the largest private investment in LHT’s history, will increase the supply of high-quality affordable housing through long-term, low interest rate loans for local projects,” said Dan Letendre, managing director for Bank of America’s Community Development Financial Institutions.
The Lowcountry Housing Trust aims to create sustainable communities by financing affordable housing in underserved neighborhoods throughout the state.
Since its inception in 2004, the trust has provided $18.7 million in financing to nonprofits, for-profit developers, and government entities for more than $154 million in community development projects, including a healthy food retail outlet, a community facility, five businesses and 1,043 housing units.