Maria Barry

Describe the past 12 months in one word, then expand on your choice. 

Dynamic! There seems to be something new to focus on each month, with rising rates, escalating construction and insurance costs, fears of a global recession, new regulatory requirements, etc. I’m so thankful the affordable housing industry continues to be resistant to so many headwinds. At Bank of America, I lead a committed team that works with for-profit and nonprofit developers through all business cycles. Our clients know that we’re in it for the long haul. In addition, our team is very capable and passionate, which positions us well to deliver creative solutions so our clients can focus on doing their important work.

Tell us about a recently closed deal you’re proud of, and its biggest challenges/high points.

We recently provided Brisa Builders, a for-profit minority- and woman-owned business, with nearly $170 million in debt and equity financing to construct an 11-story, mixed-use building with 232 affordable housing units in Brooklyn. The capital stack also includes significant subsidies from New York City agencies.  Income restrictions range from 30 percent to 80 percent of area median income, with 70 supportive housing units for formerly homeless households and 16 affordable independent residences for seniors. Social services, including an after-school program, will be provided on-site by the African American Planning Commission Inc. 

The project also includes commercial space to support the development of future business entrepreneurs, local merchants and economic development organizations. Amenities include a community room with a kitchen, a fitness room, outdoor terraces, bike storage and 59 parking spaces. The site will have rooftop solar panels, a green roof and is pursuing Enterprise Green Communities and Energy Star Multifamily New Construction certifications. 

What are/aren’t you lending on today, and what’s changed in your loan terms? 

While our approach to underwriting credit and investments remains essentially the same — strong sponsors, well-structured deals, solid markets — in the current environment, we are certainly focused on ensuring the developments we finance have a solid capital stack and adequate reserves so they can withstand any changes in market conditions. 

Name two markets you’re gravitating toward today. 

One of the strengths of our business is its national platform and client-
focused approach, so it is difficult to name just two key markets. Our goal is to work closely with our clients and in partnership with public agencies so we can collectively have the greatest impact possible. We are fortunate to work in markets where Bank of America has a presence and there is a need for affordable housing, which is almost everywhere.

Has certain lenders’ retrenchment been beneficial to your pipeline? 

Our pipeline continues to be strong and hasn’t been impacted by retrenchment of other firms.  Borrowers look for certainty in tough times. Thankfully, given our long history of commitment to the business, we continue to be a preferred option for financing affordable housing. 

What’s your approach when it comes to loan extension requests? 

We build them in up front. The majority of affordable housing deals have a permanent takeout in place at closing, so we align our extensions with the permanent loan requirements. Typically, everyone works together to get the loan converted, especially in today’s rate environment, and we rely on the loan agreement if there are delays. 

Will rate stability calm market volatility?  

Clarity breeds stability. We may see a calmer market in 2024 because we have a better directional sense of where the U.S. economy is headed compared to the beginning of the year.  While there are definitely challenges that real estate markets and the global economy have yet to fully address, we have strong indications that the Fed won’t raise rates beyond this year and will most likely start cutting rates mid-next year. In addition, we’re expecting a soft landing instead of a stronger recession, and inflation is expected to fall. Our clients have reasons to be optimistic.

What scares the bejesus out of you in today’s market? 

Rising rates, increasing costs, and pressure on federal and state housing subsidies to meet demand. It is very challenging to get the capital stack to balance in the current environment. Thankfully, our clients and housing agency partners continue to be innovative in finding ways to make deals work.

If you had five minutes with Jerome Powell what would you say? 

I would want to get his thoughts on how we make the needed economic changes to curb inflation while ensuring that low- and middle-income individuals and families receive the support they need to avoid housing vulnerability.  

If you could make like Scott Bakula and quantum leap back to November 2022, what would you tell yourself? 

Expect the unexpected — but trust that you have the right team in place to face all the challenges ahead while still keeping our clients’ needs at the center of all we do.

Lightning Round:

Multifamily or Industrial?

Multifamily. 

Taylor Swift or Beyoncé?

Taylor Swift — saw the “rain show” in Boston! 

What would be the title of your Lifetime biopic?

“Running on Faith, Family, Finance and Fitness!” 

‘Ride or dies’ only (relationship borrowers) or taking on new borrowers?

Relationships. 

Vacay time: Mountains or beach?

Both! We live in Rhode Island and Colorado. 

Complete this sentence: If I weren’t a lender I’d be a…

Doctor or track coach.