KeyBank Provides $34.3 Million of Financing for the Rehabilitation of Six Affordable Housing Properties in Chicago
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The provision of a $34.3 million financing package for the rehabilitation of low-income housing in Chicago by KeyBank Community Development Lending and Investment (CDLI) represents a significant investment in urban development and social infrastructure. This initiative is expected to have a positive economic impact on the South Shore area by stimulating local employment during the construction phase and potentially increasing the area's desirability upon completion.
From an economic standpoint, such investments can lead to a multiplier effect where the increased disposable income of the residents and the improved infrastructure can attract more businesses and services to the area, further enhancing economic activity. Moreover, the involvement of the Illinois Housing Development Authority (IHDA) through LIHTC and tax-exempt bond allocations indicates a collaborative effort between public and private entities to address affordable housing, which can be seen as a model for other urban areas facing similar challenges.
The strategic investment in low-income housing by Evergreen Real Estate Group, facilitated by KeyBank's financing, is indicative of the growing trend in socially responsible investments (SRI) within the real estate sector. Investors are increasingly looking for opportunities that not only provide financial returns but also create positive social impact. The Low-Income Housing Tax Credit (LIHTC) partnership with the Housing and Human Development Corporation (HHDC) is a critical component that makes such investments more attractive by offering tax incentives, thereby potentially enhancing the investment's profitability.
For stakeholders, the long-term sustainability improvements such as energy-efficient appliances and infrastructure upgrades could lead to reduced operational costs and increased asset longevity. These enhancements are likely to be well-received by investors who are mindful of environmental, social and governance (ESG) criteria. It's important to note that such projects can also carry risks, including construction delays or cost overruns, which could affect the expected returns.
The rehabilitation of the 6900 Crandon Apartments and the additional five apartment buildings for families is a direct response to the critical need for affordable housing in urban settings. The project's focus on serving low income seniors, families and residents with disabilities addresses a social need that can have far-reaching implications for community stability and growth. By providing on-site social service coordinators, the initiative demonstrates a holistic approach to urban development, recognizing that housing stability is intrinsically linked to access to social services and community support.
This approach aligns with contemporary urban development strategies that emphasize not just the physical infrastructure, but also the social fabric of communities. The provision of services such as financial literacy, computer literacy and health care education can empower residents and contribute to breaking cycles of poverty. Monitoring the outcomes of such comprehensive development projects can provide valuable insights for future urban planning and policy-making.
Apartments to serve low income seniors, families and residents with disabilities
CLEVELAND, OH / ACCESSWIRE / January 24, 2024 / KeyBank Community Development Lending and Investment (CDLI) provided a
The sponsor for the South Shore apartments is Evergreen Real Estate Group (Evergreen), a fully integrated real estate company that develops, acquires, and manages affordable and market-rate multifamily communities across 12 states. The properties are owned by a LIHTC partnership created by the Housing and Human Development Corporation (HHDC), a non-profit public housing facility in Chicago, whose mission is to promote affordable housing and provide services to low-income residents and families.
The project also received LIHTC and tax-exempt bond allocations from Illinois Housing Development Authority (IHDA). KeyBanc Capital Markets served as the sole manager and underwriter for the
The funds will be used to improve tenant quality of life and sustainability of the apartments over the long term. Improvements include new cabinets, countertops, flooring, energy efficient appliances and fixtures for resident units as well as elevator modernization, upgrades to mechanical, electrical and plumbing systems and replacement of existing roofs, masonry and exterior repairs
HHDC serves as the owner/operation and will provide on-site social service coordinators (2.5 FTE) to connect residents to a variety of community based social service providers and assist residents in determining eligibility for various government services including health care and health care education, financial literacy and computer literacy, childcare, youth activities, nutritional services, disability services, tenant home ownership training and parenting programs.
Leslie Meyers and Robbie Lynn of KeyBank CDLI structured the HUD 221 (d)(4) financing, and Sam Adams of KeyBanc Capital Markets marketed the bonds.
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 KeyBanc Capital Markets
KeyBanc Capital Markets is a leading corporate and investment bank providing capital markets and advisory solutions to dynamic companies capitalizing on opportunities in changing industries. Our deep industry expertise, broad capabilities and unique ideas are seamlessly delivered to companies across the Consumer & Retail, Diversified Industries, Healthcare, Industrial, Oil & Gas, Real Estate, Utilities, Power & Renewables, and Technology verticals. With over 800 professionals across a national platform, KeyBanc Capital Markets has more than
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
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SOURCE: KeyBank
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FAQ
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