KeyBank Provides $82 Million of Financing for Affordable Housing Property in Texas

Rhea-AI Summary

KeyBank Community Development Lending and Investment has secured $83 million for the acquisition and rehabilitation of Woodway Square Apartments, a 240-unit affordable housing project in Austin, Texas. The financing comprises an equity bridge loan of approximately $18.2 million, a $40 million construction to permanent loan, and $24 million in Low-Income Housing Tax Credit equity.

The project will serve families earning no more than 60% of the area median income, with a total project cost of $72 million for rehabilitation. KeyBank's efforts are supported by local programs aimed at assisting low-income persons with disabilities through rental assistance.

Positive

• KeyBank provided $83 million for the acquisition and rehabilitation of Woodway Square Apartments, enhancing affordable housing in Austin, Texas.
• The financing includes diverse funding sources, showcasing KeyBank's robust lending capabilities.
• Woodway Apartments will serve families earning up to 60% of the area median income, addressing critical housing needs.
• The project has received local support, bolstered by the Section 811 Project Rental Assistance program.

Negative

• The total project cost is $72 million, indicating significant expenditure required for rehabilitation.
• The heavy reliance on multiple financing sources may present integration challenges during project execution.

CLEVELAND, OH / ACCESSWIRE / April 6, 2023 / KeyBank Community Development Lending and Investment (CDLI) KeyBank provided $83 million for the acquisition and rehabilitation of Woodway Square Apartments (Woodway), a 240-unit, affordable, family project located in Austin, Texas.

Construction financing is being arranged by KeyBank's CDLI group with an equity bridge loan of approximately $18.2 million, a $40 million private placement construction to permanent loan provided and Low-Income Housing Tax Credit (LIHTC) equity of $24 million.

The sponsor/developer Dominium is a prolific affordable housing developer, with headquarters in Plymouth, Minnesota and regional offices in Atlanta, Dallas, Minneapolis, and Phoenix.

Woodway is a 240-unit, garden-style community for individuals and families earning no more than 60% of the area median income. The property includes twelve-buildings with 60 one-bedroom units, 138 two-bedroom units, and 42 three-bedroom units. The affordable community includes on-site management, a community room, playground, and swimming pool. The property will undergo a rehabilitation with a total project cost of $72 million.

The project received local support and engagement through the Section 811 Project Rental Assistance (PRA) program which provides project-based rental assistance for low-income persons with disabilities linked with long term services. The program is made possible through a partnership between the State Agency and the Texas Health and Human Services Commission (HHSC) and creates the opportunity for persons with disabilities to live as independently as possible.

Anna Belanger of KCDC and Kelly Frank of CDLI structured the financing.

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 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 $189.8 billion at December 31, 2022. 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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Contact Info:

Spokesperson: KeyBank
Website: https://www.3blmedia.com/profiles/keybank
Email: info@3blmedia.com

SOURCE: KeyBank

View source version on accesswire.com:
https://www.accesswire.com/747944/KeyBank-Provides-82-Million-of-Financing-for-Affordable-Housing-Property-in-Texas

FAQ

What is the total financing amount KeyBank provided for Woodway Square Apartments?

KeyBank provided a total financing amount of $83 million for the acquisition and rehabilitation of Woodway Square Apartments.

How much of the financing for Woodway Square Apartments comes from Low-Income Housing Tax Credit equity?

The financing for Woodway Square Apartments includes $24 million from Low-Income Housing Tax Credit equity.

What percentage of area median income will Woodway Square Apartments serve?

Woodway Square Apartments will serve families earning no more than 60% of the area median income.

What is the total cost for the rehabilitation of Woodway Square Apartments?

The total cost for the rehabilitation of Woodway Square Apartments is $72 million.