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.
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.
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.