CLEVELAND, Oct. 3, 2023
/PRNewswire/ -- KeyBank Community Development Lending and
Investment (CDLI) provided $14.6
million financing for the construction of New Life Homes, a
60-unit low-income housing project on Hilltop in Tacoma, WA. This project will help to address
the dire need for affordable housing serving individuals in
recovery for substance abuse, those leaving the criminal justice
system, formerly homeless persons, persons with disabilities, and
veterans earning no more than 30% or 50% of AMI (Area Median
Income).
New Life Homes is sponsored and developed by Shiloh Baptist Church with Beacon Development
Group serving as consultant. Shiloh Baptist
Church is a historic Black church that wants to combat
gentrification on Tacoma's Hilltop
by transforming several of its parcels along the block of South I
Street into affordable housing. With the assistance of Tacoma
Housing Authority, the church has leveraged several public funding
sources along with tax credits and traditional financing to
construct New Life Homes.
KeyBank CDLI provided a $14.6
million construction loan with LIHTC equity provided by
National Equity Fund's (NEF) Emerging Minority Developer Fund. NEF
is a tax credit syndicator, and KeyBank CDLI is also an investor in
NEF's Emerging Minority Developer Fund.
Washington Community Reinvestment Association (WCRA) provided a
permanent loan of $2.9 million with
the interest rate locked at 6.584%. In addition, the project will
have substantial subordinate financing from multiple sources,
including $6 million from the
Washington State Housing Trust
Fund, $4.4 million from the
City of Tacoma, $5 million from Pierce
County and a $1.1 million GP
Capital Contribution (Land).
Supportive services for tenants with a focus on creating
opportunities for growth, education, and skill development will be
provided by BIMA (Believing In Myself Again) Services. Veterans
Affairs will provide services for the Veterans Affairs Supportive
Housing (VASH) units and coordinate with BIMA, the service provider
for the site, as appropriate.
Caleb Stephens of KeyBank CDLI
structured the construction loan.
About KeyBank Community Development Lending and
Investment
KeyBank Community Development Lending and
Investment (CDLI) finances projects that stabilize and revitalize
communities across all 50 states. As one of the top affordable
housing capital providers in the country, KeyBank's platform brings
together construction, acquisition, bridge-to-re-syndication, and
preservation loans, as well as lines of credit, Agency and HUD
permanent mortgage executions, and equity investments for
low-income housing projects, especially Low-Income Housing Tax
Credit (LIHTC) financing. KeyBank has earned 10 consecutive
"Outstanding" ratings on the Community Reinvestment Act exam, from
the Office of the Comptroller of the Currency, making it the first
U.S. national bank among the 25 largest to do so since the Act's
passage in 1977.
About KeyCorp
KeyCorp's (NYSE: KEY) roots trace back
nearly 200 years to Albany, New
York. Headquartered in Cleveland,
Ohio, Key is one of the nation's largest bank-based
financial services companies, with assets of approximately
$195 billion at June 30, 2023. Key provides deposit, lending,
cash management, and investment services to individuals and
businesses in 15 states under the name KeyBank National
Association through a network of approximately 1,000 branches and
approximately 1,300 ATMs. Key also provides a broad range of
sophisticated corporate and investment banking products, such as
merger and acquisition advice, public and private debt and equity,
syndications, and derivatives to middle market companies in
selected industries throughout the United
States under the KeyBanc Capital Markets trade name. For
more information, visit https://www.key.com/. KeyBank is Member
FDIC.
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SOURCE KeyCorp