KEYBANK PROVIDES $14.6 MILLION OF FINANCING FOR SUPPORTIVE HOUSING IN TACOMA, WASHINGTON

Rhea-AI Impact

(Low)

Rhea-AI Sentiment

(Neutral)

Tags

Rhea-AI Summary

KeyBank CDLI provides $14.6 million financing for low-income housing project in Tacoma, WA.

Positive

KeyBank CDLI provides $14.6 million financing for construction of New Life Homes, addressing the dire need for affordable housing.
Washington Community Reinvestment Association provides a $2.9 million permanent loan with a locked interest rate of 6.584%.
Supportive services for tenants will be provided by BIMA Services.

Negative

None.

10/03/2023 - 10:35 AM

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.