LISC Toledo Receives $400,000 From KeyBank to Create Homeownership Opportunities

Rhea-AI Summary

KeyBank and the KeyBank Foundation have announced a $400,000 investment in LISC Toledo's Core City Program. This four-year grant will help cover a development cost gap of up to $40,000 per home to support the construction of approximately 15 homes in Toledo's downtown neighborhoods. The program aims to address blight, increase homeownership (especially among families of color), and increase property values.

In 2023, 73% of program beneficiaries were BIPOC and 58% were female heads of households, with an average income of $40,000. The program has already seen success, with average home sale prices in target neighborhoods rising from $25,000 to $70,000. To date, LISC Toledo has invested over $1.4 million in the Core City Program, renovating and selling 29 homes to owner-occupants, with 13 more in the pipeline.

Positive

• KeyBank's $400,000 investment will support the development of approximately 15 homes
• The Core City Program has increased average home sale prices from $25,000 to $70,000 in target neighborhoods
• LISC Toledo has invested over $1.4 million in the Core City Program, renovating and selling 29 homes
• 73% of program beneficiaries in 2023 were BIPOC, supporting increased homeownership among families of color
• KeyBank has granted LISC Toledo more than $2 million over the last 20 years for community development

Negative

• None.

Insights

Community Development Specialist

KeyBank's $400,000 investment in LISC Toledo's Core City Program is a strategic move to address urban blight and promote homeownership in Toledo's downtown neighborhoods. This initiative targets a critical issue: the development cost gap that often hinders affordable housing projects. By covering up to $40,000 per home for approximately 15 homes, KeyBank is effectively catalyzing community revitalization.

The program's focus on increasing homeownership among families of color is particularly noteworthy, as it addresses historical disparities in wealth accumulation. The reported increase in average home sale prices from $25,000 to $70,000 in target neighborhoods indicates a positive trend in property values, which can lead to broader economic benefits for the community.

However, investors should note that while this initiative demonstrates KeyBank's commitment to community development, its direct impact on the bank's financial performance may be in the short term. The long-term benefits could include enhanced brand reputation, stronger community relationships and potential growth in the local customer base, which may indirectly contribute to KeyBank's business in the region.

Financial Analyst

From a financial perspective, KeyBank's $400,000 investment represents a relatively small allocation of capital given the bank's $187 billion in assets. While this initiative aligns with KeyBank's corporate social responsibility efforts, its immediate financial impact on the company's bottom line is likely to be minimal.

However, this type of community investment can yield long-term benefits. By supporting affordable housing and economic development in Toledo, KeyBank may be positioning itself to capture a larger share of the local banking market. The program could lead to increased demand for mortgage products and other financial services as more families become homeowners.

Investors should view this as part of KeyBank's broader strategy to strengthen its presence in key markets. The bank's consistent investment in LISC Toledo over the past 20 years, totaling more than $2 million, demonstrates a long-term commitment to community development. This approach can enhance customer loyalty and potentially drive organic growth in deposits and loans within the region.

NORTHAMPTON, MA / ACCESSWIRE / October 22, 2024 / KeyBank
Grant funds will help cover a development cost gap of up to $40,000 to build approximately 15 homes

KeyBank and the KeyBank Foundation announced an investment of $400,000 in the Local Initiatives Support Corporation (LISC) Toledo to boost its Core City Program.

Using grant funds for the next four years, LISC Toledo and the Core City Program will help cover a development cost gap of up to $40,000 to support development of approximately 15 homes.

The Core City Program focuses on the rehabilitation of previously vacant single-family homes in Toledo's downtown neighborhoods to:

• Address blight

• Increase homeownership, especially among families of color

• Increase property values and narrow the appraisal gap

The program allows more Toledo families to enjoy safe, stable housing and reap the wealth-building benefits of homeownership.

"At KeyBank, we are committed to investing in initiatives that create lasting, positive change in our communities," said Dan Dower, KeyBank Norwest Ohio Market President.

"Our investment in LISC Toledo's Core City Program is about more than just housing - it's about empowering families, increasing homeownership opportunities, and helping build stronger, more resilient neighborhoods. By addressing the development cost gap, we're working to ensure that Toledo's downtown communities continue to grow, thrive and offer opportunities for wealth-building, particularly for families of color. We're proud to support LISC Toledo in this transformative work, and together, we will continue to create more equitable, inclusive communities for all."

In 2023, the Core City Program beneficiaries were 73% Black Indigenous People of Color (BIPOC) and 58% female heads of households, with an average income of $40,000. Notably, the target neighborhoods at the beginning of the program had average home sale prices of $25,000; over time, the average sale prices have risen to $70,000. While still affordable, the increase in price is critical to improving neighborhood conditions.

"LISC Toledo is excited for the opportunity to continue enhancing and building our core city program while strengthening our ongoing partnerships," said Tom Kroma, LISC Toledo executive director. "We are thankful for KeyBank's participation and support since Core City's inception and look forward to continued collaboration as we provide high-quality, stable housing for Toledo residents. We aim for this investment to serve as a catalyst for additional investment and significant impact for Toledo's affordable housing and neighborhood development." Together with partners, LISC Toledo has invested more than $1.4 million in the Core City Program. The program has renovated and sold 29 homes to owner-occupants, most of whom are people of color with low-to-moderate incomes, with 13 more homes in the pipeline and more being added throughout the year.

KeyBank and LISC Toledo have a longstanding partnership. Over the last 20 years, KeyBank and the KeyBank Foundation have granted LISC Toledo more than $2 million to help create resilient and inclusive communities across the greater Toledo area.

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 $187 billion at June 30, 2024.

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 1,200 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 Member FDIC.

ABOUT LISC TOLEDO

LISC is one of the country's largest community development organizations, helping forge vibrant, resilient communities across America. LISC works with residents and partners to close systemic gaps in health, wealth, and opportunity and advance racial equity so that people and places can thrive. Since its founding in 1979, LISC has invested $32 billion to create more than 506,000 affordable homes and apartments, develop 82.5 million square feet of retail, community, and educational space, and help tens of thousands of people find employment and improve their finances. In Toledo, LISC has focused on a comprehensive approach to community development, investing nearly $275 million since 1989 and leveraging nearly $400 million to fuel economic opportunity and build stronger, healthier neighborhoods. For more information, visit www.lisc.org.

View additional multimedia and more ESG storytelling from KeyBank on 3blmedia.com.

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

SOURCE: KeyBank

View the original press release on accesswire.com

FAQ

How much did KeyBank invest in LISC Toledo's Core City Program?

KeyBank and the KeyBank Foundation invested $400,000 in LISC Toledo's Core City Program to boost homeownership opportunities in Toledo's downtown neighborhoods.

What is the development cost gap covered by the KeyBank grant for the Core City Program?

The KeyBank grant will help cover a development cost gap of up to $40,000 per home to support the construction of approximately 15 homes in Toledo's downtown neighborhoods.

How many homes has the Core City Program renovated and sold so far?

The Core City Program has renovated and sold 29 homes to owner-occupants, with 13 more homes in the pipeline and more being added throughout the year.

What percentage of Core City Program beneficiaries were BIPOC in 2023?

In 2023, 73% of the Core City Program beneficiaries were Black Indigenous People of Color (BIPOC).

How has the Core City Program affected home sale prices in target neighborhoods?

The Core City Program has helped increase average home sale prices in target neighborhoods from $25,000 at the beginning of the program to $70,000 over time.