KeyBank Expands Affordable Housing Platform as U.S. Affordable Housing Shortage Continues

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KeyBank Expands Affordable Housing Platform as U.S. Affordable Housing Shortage Continues

The 12th Avenue Arts complex development in Seattle, which opened in 2014, brings together theater, office, affordable housing, retail, restaurant space, and parking for the Seattle Police Department. Key provided approximately $20 million in loans and both $5.5 million in New Markets Tax Credit and $5.5 million in Low Income Housing Tax Credit investments.

The 12th Avenue Arts complex development in Seattle, which opened in 2014, brings together theater, office, affordable housing, retail, restaurant space, and parking for the Seattle Police Department. Key provided approximately $20 million in loans and both $5.5 million in New Markets Tax Credit and $5.5 million in Low Income Housing Tax Credit investments.

The United States is experiencing a critical affordable housing shortage, from coast to coast, and not just in the most expensive housing markets. The situation developed noticeably in 2010, during the economic downturn, and progressed as market-rate rents rose and incomes stayed flat. Currently, the U.S. is short approximately 8.2 million rental units for extremely-low-income individuals. Without enough affordable units, these individuals often end up paying 50 percent or more of their income on rent, without enough left over for items like education, health care, and transportation. The result is it becomes difficult for those households to establish themselves and get ahead.

In Buffalo, New York, KeyBank provided $16.3 million in financing for the Mass Ave Community Homes, an affordable multifamily residential development. The project provides 46 units and amenities for families with incomes ranging from 40 to 80 percent below the area median income. The properties will deliver better housing for low- to moderate-income families in the Buffalo area, creating a stabilizing effect on the community.

In Buffalo, New York, KeyBank provided $16.3 million in financing for the Mass Ave Community Homes, an affordable multifamily residential development. The project provides 46 units and amenities for families with incomes ranging from 40 to 80 percent below the area median income. The properties will deliver better housing for low- to moderate-income families in the Buffalo area, creating a stabilizing effect on the community.

While mayors in large metropolitan areas are devising plans to solve the problem, KeyBank is expanding its affordable housing offerings from 12 states to all 50 and assembling a strong team. Key has been a longtime expert in financing affordable housing, through its Community Development Lending/Investing (CDL/I) arm, and last year alone, provided nearly $400 million in debt and equity financing to developments in underserved communities.

KeyBank provided $8.4 million in LIHTC equity investment and a $5.8 million construction loan to the development of Nativity House, in Tacoma, Washington.  The permanent supportive housing development consists of 50 units for chronically homeless men and women was built in conjunction with an adjacent shelter and hospitality kitchen.  It offers integrated services to those in need and the opportunity for shelter users to transition to permanent housing.

KeyBank provided $8.4 million in LIHTC equity investment and a $5.8 million construction loan to the development of Nativity House, in Tacoma, Washington. The permanent supportive housing development consists of 50 units for chronically homeless men and women was built in conjunction with an adjacent shelter and hospitality kitchen. It offers integrated services to those in need and the opportunity for shelter users to transition to permanent housing.

With its last exam, Key received eight consecutive “Outstanding” ratings on the Community Reinvestment Exam for its ability to lend, invest, and provide services to its communities, especially those that are underserved.

Congratulations KeyCorp!