Maria Barry

Describe the past 12 months in one work, then tell us the key lending opportunities you and your team have uncovered.

Dynamic. There is a critical need to build and preserve affordable housing, so we continue to work closely with our clients to make this happen. At Bank of America Community Development Banking (CDB), we deliver debt and tax credit equity, as well as many other financial solutions, to ensure our clients have the tools they need to continue to do the good work of creating much-needed affordable housing. Our approach hasn’t changed, but given the unpredictable market dynamics — whether interest rates, supply chain or inflation — we work closely with our clients to work and rework deals to get them over the finish line. 

Are rate cuts the silver bullet the industry has been waiting for to solve all woes?  

Rate cuts will help. Lower rates will help reduce the interest cost of construction loans and, more importantly, reduce the cost of permanent debt, which helps keep housing affordable in the long run. In some cases, lower rates will also enable subsidies to spread further since the overall cost of the project will be reduced.

What excites you most about today’s affordable lending market?

There is a real recognition that there is a critical need for housing. It is one of the top agenda items at the local, state and national levels. There is also a strong public-private partnership where all parties have the same goal. And one of the best parts is when it all comes together: The housing is built, and residents have a safe, affordable place to live. Truly, we are helping create vibrant communities that help produce better outcomes, which is the most exciting part of this work.

How does distress continue to play out in 2025, and how can lenders best protect themselves?

We provide our clients with best practices and advice to help mitigate risk at every stage. It is important to the development that the deal is underwritten with adequate cushions to help address unexpected costs or changes that occur as the project is built. We have also seen our clients order key products, such as switch gear, much earlier to avoid supply chain challenges. Having a strong understanding of current and future insurance costs is important to avoid surprises. Also, ensuring there is a long-term plan to pay for resident services, especially as costs rise.

Are you still enthusiastic about multifamily as you were three years ago?

Yes, since CDB’s focus is affordable housing, and the need is so great, we have a strong, continued focus on helping our clients address the nationwide housing challenge. It gives us the opportunity to be creative and bring all the resources of the bank. For us this also means innovating around workforce housing for middle-income workers, partnering with developers through the Bank of America Community Development Corp., and working with community partners through the Bank of America Charitable Foundation across our 97 local markets, which helps provide much-needed resident services, among other solutions.

How much of your activity is relationship lending versus lending to new borrowers today?

While we are primarily focused on maintaining the relationships we’ve built over time, we do still work with new clients. Our goal is to help our developer clients with all their financial needs — debt, equity, treasury management, financial resources for their employees — to help ensure they have a strong financial position and can focus on creating affordable housing.

Tell us about a deal you’re especially proud of this past year.

The Helios is a 100 percent rent-restricted, solar-powered development, a joint venture between Richmond, Va.-based partners Spy Rock Real Estate Group and Crescent Development, who are new clients. The 8.2-acre site was formerly occupied by a dilapidated, vacant motel and is being transformed into 186 new-construction units for residents earning 60 percent of the area median income. The Helios will be powered by on-site solar panels on the roof of each building and by four ground segments across a 1.9-acre solar array, resulting in residents having no electricity bill. The three buildings will be connected by a small outdoor amenity space that will feature a playground, a dog park, a grilling area, a pickleball court and vast green space. Set to open in the third quarter of 2025, the Helios will impact the surrounding Henrico County community by providing affordable housing that will meet city codes and goals for energy efficiency. 

Lightning Round:

AI: Helpful or fad?

Helpful.

Celebrity you’re sometimes compared to?

Jennifer Garner.

Will interest rates be below or above 4 percent on July 1, 2025?

Above.

Pick a movie remake: “Beetlejuice” or “Twisters”?

“Twisters.”

Exercise of choice?

Running.

Pref equity or mezz?

Pref equity.

Class B office: Tear down and start over, or convert?

Convert whenever possible.

Song title that encapsulates your current mindset?

“Grateful” by Elevation Worship.