Bank of America and the city of Detroit today announced the bank’s investment of $3 million toward its mission of helping homeowners and small-business entrepreneurs as well as an additional $2.5 million for Detroit neighborhoods.
The $3 million is Bank of America’s cumulative philanthropic giving in the Detroit area in 2019. It has gone to the bank’s community partners dedicated to building strong communities. It includes giving to key programs that create pathways to employment, delivering financial education, supporting entrepreneurship and helping to foster stable, thriving neighborhoods.
The announcement was made at Detroit Sip, a Motor City Match recipient located in the city’s Livernois-McNichols neighborhood. The area has seen significant investment through Invest Detroit, a nonprofit lender and investor in Detroit’s future.
Bank of America has invested $30 million in these programs since 2009 with the goal of advancing economic mobility and building stronger communities and neighborhoods throughout the city.
“Detroit’s comeback cannot succeed unless it includes its neighborhoods,” says Mayor Mike Duggan. “That’s why these programs supported by Bank of America are so vitally important. They are helping longtime Detroiters participate in the city’s recovery by helping them start their own business, purchase a new home, or renovate the home they’ve lived in since long before our city’s comeback began.”
Matt Elliott, Michigan market president at Bank of America, also announced today an additional investment of $1.5 million in the 0 Percent Interest Home Repair Program and a $1 million operating grant to Invest Detroit to support its expansion of the Strategic Neighborhood Fund and Affordable Housing Leverage Fund, which, in partnership with the city of Detroit, has seen a commitment of $35 million this year from corporate partners for improving parks, streetscapes and single-family housing.
“Bank of America is committed to investing in the people, places and projects that move Detroit forward. Our neighborhood strategy is providing support that spurs economic mobility for individuals and families,” says Elliott. “This foundation grant and the business investments we’ve made to support entrepreneurship, create jobs and make homeownership more attainable are helping to drive economic mobility and strengthen Detroit now and for future generations.”
The 0 Percent Interest Home Repair Program is administered by Local Initiatives Support Corporation (LISC), and has helped more than 500 families since its launch in 2015. The program offers 10-year, interest-free loans from $5,000 to $25,000 to help Detroit homeowners invest in and repair their homes – promoting public health and safety, increasing property values, and helping residents secure and maintain homeowners insurance. Residents pay back only what they borrow. For more information, visit here.
“Since 2015, the 0 Percent Interest Home Repair Program has been a game changer for Detroit residents giving them an opportunity to improve their homes while helping to stabilize neighborhoods across the city,” says Tahirih Ziegler, executive director of Detroit LISC. “Support from Bank of America has empowered Detroiters to not only reaffirm their commitment to homeownership in the city, but to also improve their daily lives in a way that means so much to them.”
Through the Down Payment Grant program, Bank of America gives eligible buyers 3 percent of the home purchase price, up to $10,000, to be used as a down payment, with no repayment necessary. Qualified buyers may also be eligible for the bank’s closing grant program, a lender credit through which they could receive up to $7,500 for non-recurring closing costs, or in some instances, to buy down their interest rate. To apply, residents can visit here.
The $1 million grant to Invest Detroit will go toward funding operations, such as administering the Strategic Neighborhood Fund, as well as small business and real estate loan programs investing in Detroit neighborhoods and local developers and business owners.
“As we expand our work into more neighborhoods through the Strategic Neighborhood Fund and other Invest Detroit programs, it is crucial that we also expand our capacity. This level of operating support from Bank of America helps to ensure that we can deliver, and its impact on our work and organization cannot be understated,” says David Blaszkiewicz, president and CEO of Invest Detroit.