KeyBank Provides $71.8 Million of Financing for New Affordable Housing Construction in Greenfield, California

Rhea-AI Summary

KeyBank CDLI and KeyBanc Capital Markets provided $71.8 million financing for Greenfield Commons Phase 1, an affordable housing project in Greenfield, CA. EAH Housing is the developer. Other funding sources include California HCD Accelerator funds, Monterey County CDBG funds, and Joe Serna, Jr. Farmworker Housing Grant funds.

NORTHAMPTON, MA / ACCESSWIRE / September 20, 2023 / KeyBank Community Development Lending and Investment (CDLI) and KeyBanc Capital Markets provided $71.8 million construction and permanent 501(c)(3) bond financing utilizing a combination of direct bank debt and Fannie Mae M.TEBs for Greenfield Commons Phase 1, a 100-unit affordable housing project, located in Greenfield, CA, 33 miles southeast of Salinas, CA.

The project is being developed by EAH Housing (EAH), Inc, and includes 99 family units and 1 manager unit. There are 27 units with Project-based vouchers set aside for families and farmworkers. The residential units are being built by Nashua, an off-site modular manufacturer in Boise, ID and Swinerton is the general contractor.

KeyBank CDLI provided a $15.99 million taxable construction loan to collateralize Fannie Mae forwardMBS Tax-Exempt Bond (MTEB) public bond offering and $55.38 tax-exempt direct purchase loan to bridge California Accelerator program funds. KeyBanc Capital Markets purchased $55.4 million of 501c3 bonds and provided a floating-to-fix interest rate swap derivative on both loans ($71.37) million.

EAH also received $51.3 million from the California HCD Accelerator funds with an additional $4.6 million from the California Accelerator Supplemental funds. The California Accelerator funds are from Federal COVID relief money in lieu of tax credits. Tax credit and bond allocations were insufficient to fulfill California's affordable housing development demand, and these funds are California's solution for priority projects. Other financing includes $350,000 from Monterey County CDBG funds, $1.9 million Monterey County Housing Trust Funds, $9.0 million in Joe Serna, Jr. Farmworker Housing Grant funds, and $400,000 in Build Funds.

EAH Housing is a non-profit corporation founded with the belief that attractive affordable rental housing is the cornerstone to sustainable, healthy, and livable communities. EAH Housing is an established successful nonprofit affordable housing developer founded in 1968. Since then, EAH Housing has become one of the largest and most respected nonprofit housing development and management organizations in the western United States. With a staff of over 700, EAH develops affordable housing, manages 230 properties in California and Hawai‘i, and plays a leadership role in local, regional, and national housing advocacy efforts.

Matthew Haas, Hector Zuniga, and Keven Ruf of KeyBank CDLI structured the financing with construction lending and Fannie Mae agency debt. Ila Afsharipour of KeyBanc Capital Markets Public Finance Group provided the bond underwriting.

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 KeyBanc Capital Markets

KeyBanc Capital Markets is a leading corporate and investment bank providing capital markets and advisory solutions to dynamic companies capitalizing on opportunities in changing industries. Our deep industry expertise, broad capabilities and unique ideas are seamlessly delivered to companies across the Consumer & Retail, Diversified Industries, Healthcare, Industrial, Oil & Gas, Real Estate, Utilities, Power & Renewables, and Technology verticals. With over 800 professionals across a national platform, KeyBanc Capital Markets has more than $50 billion of capital committed to clients and an award-winning Equity Research team that provides coverage on nearly 600 publicly traded companies. Securities products and services are offered by KeyBanc Capital Markets Inc., member FINRA/SIPC, and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services, are offered by KeyBank N.A.

About KeyCorp

KeyCorp's 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: KeyBank

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