Local and National Funders Respond to the Foreclosure Crisis Metropolitan Washington Council of Governments Charles R. Henderson, Jr. Community Development Strategies Executive January 4th, 2005 January 4th, 2005June 19, 2008

2 Our Commitment: Vibrant Neighborhoods and Stable Communities Neighborhood Excellence is our mission – thriving communities help our business thrive – We are only as strong as the communities that we serve We are the national leader in innovative community development solutions and financial expertise – All lines of business deliver financial products and company resources to target priority needs – We bring together neighborhood leaders, nonprofits, businesses and our financial experts to create neighborhood improvement Our 10-year, $750 billion community development goal drives our efforts – $100.1 billion in 2007 for affordable housing, consumer lending, small business and economic development – New 10-year $1.5 trillion goal begins in 2009

3 Neighborhood Preservation – Foreclosure Prevention and Mitigation We recognize that home ownership is a key to healthy neighborhoods Mortgage foreclosure crisis is affecting health and economies of communities across America We have developed a $35 million portfolio of grants and investments to complement national efforts such as the $180 million National Foreclosure Mitigation Counseling Program facilitated by NeighborWorks® – Combination of national and local grants targets seven critical states and the most effective nonprofits in each state – A growing portfolio with national and regional grants and investments through 2009

4 Strategic Approach for Delivering Resources Effectively Bank of America assistance is grounded in the company’s philanthropic strategies and successful experience in leveraging available resources We rely on and enhance local expertise – NEI signature program effectively strengthens communities We provide resources to empower the best local nonprofits to leverage resources (such as HUD allocation) Bank of America Program Related Investments (PRI) are an effective channel for targeting regions and communities in need

5 Program Related Investments Strengthen Targeted Communities – Additional Opportunities Investing in Community Development Financial Institutions (CDFIs) creates economic capacity Effective way to deliver capital to areas in need of investment dollars Creates jobs, strong local economies, asset building Opportunity to expand PRI component $15 million PRI for REO acquisition – We now have one such PRI in underwriting

6 Challenges and Opportunities – Future Approaches Can New Markets Tax Credits assist in the preservation of a stable supply of affordable housing? Dealing with the REO threat to neighborhoods – pressures from local governments and high level of media interest Bank of America is considering programs it may lead or support for future solutions

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