KeyBank Arranges $18.2 Million in Total Financing to Preserve Affordable Housing in Troy, NY

CLEVELAND, March 27, 2017 /3BL Media/ - KeyBank has provided a total of $18.2 million in financing for the Martin Luther King Revitalization Apartments, built in 1971 and located in Troy, NY. The Troy Housing Authority partnered with Beacon Communities Development to renovate and preserve 104 units of affordable housing through HUD’s Rental Assistance Demonstration Program.

“Key is deeply committed to making safe affordable housing available in the communities where we live and work,” said Rob Likes, national manager of Key’s Community Development Lending and Investment (CDLI) team. “We are very proud of our collaboration with local organizations like the Troy Housing Authority and Beacon Communities Development, and feel confident our combined efforts will help address the affordable housing crisis – one project at a time.”

Key’s CDLI group provided a $6.2 million construction loan and will also invest up to $12 million in Low Income Housing Tax Credits (LIHTC) direct equity to finance the first phase, which includes the preservation of 46 units for residents earning between 30-80% of the area median income.

Joe Eicheldinger and Victoria O’Brien of Key’s CDLI team helped arrange the financing, made possible by an allocation of LIHTC from New York State Homes and Community Renewal. Additionally the project required the approval and support of the U.S. Department of Housing and Urban Development. 

“At Key, our integrated CDLI platform helps us make a meaningful and positive impact on communities,” said O’Brien. “We pride ourselves on our capacity to preserve existing affordable housing options, as we’ve done with the Martin Luther King Revitalization effort.”

Upon completion, the Martin Luther King Revitalization Apartments will set aside seven units for families who are homeless, with a specific focus on homeless veterans. Additionally, residents will have access to services such as home visitation, life-skills training, medical transportation and individual counseling; the services will be provided by Troy Housing Authority nonprofit partners, Unity House and Joseph House.

“We greatly appreciate KeyBank’s financial support, as we work to renovate and preserve affordable housing in Troy,” said Daniel P. Crawley, Executive Secretary of the Troy Housing Authority. “We are encouraged by the bank’s partnership, and eagerly await the positive impact this project will have on the surrounding community.”

“Beacon Communities is proud to partner with KeyBank, NYS Homes and Community Renewal and the Troy Housing Authority on the redevelopment and preservation of this critical affordable housing resource in Troy”, said Duncan Barrett, President of Beacon Communities Development LLC-New York.  “The families living in these homes and future generations of Troy families will benefit from this high quality, energy efficient housing.  The redevelopment process reinforces the dynamic economic development occurring in Troy and adds to the long term vitality of the whole community.”

The project is the culmination of several years of planning initiated by the Troy Housing Authority and Beacon Communities.  Resident and community involvement was crucial to the planning efforts.  “The collaboration of all involved entities – residents, community partners, developers, bankers and local, state and national government officials – has enhanced this project significantly,” concluded Crawley.

About Key Community Development Lending and Investment

KeyBank Community Development Lending and Investment (CDLI) helps fulfill Key’s purpose to help clients and communities thrive by financing projects that stabilize and revitalize communities. Experts in complex tax credit lending and investing, Key is one of a handful of affordable housing lenders in the country with a platform that brings together balance sheet, equity, and permanent loan offerings. CDLI has a substantial investment and loan portfolio worth more than $2 billion, 90% of which is Low Income Housing Tax Credit (LIHTC) projects. For its ability to lend to, invest in, and serve its communities –especially low-to-moderate income communities – KeyBank has earned eight consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency.

About KeyCorp

KeyCorp’s roots trace back 190 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 $136.5 billion at December 31, 2016. Key provides deposit, lending, cash management and investment services to individuals and small and mid-sized businesses in 15 states under the name KeyBank National Association and First Niagara Bank, National Association, through a network of more than 1,200 branches and more than 1,500 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.

About Troy Housing Authority

Since 1944, the Troy Housing Authority has been providing decent, safe and affordable housing to individuals and families as they strive for self-sufficiency.  All operations are regulated and evaluated by the U.S. Department Housing and Urban Development (HUD).  Presently, the Troy Housing Authority manages approximately 1,200 units of Low Income Public Housing, over 700 Tenant-based Housing Choice Vouchers and over 150 Project-based Housing Choice Vouchers.  The Troy Housing Authority also functions as the managing partner for Kennedy Senior Housing Associates, owner and operator of Kennedy Towers, a 135 apartment Low Income Housing Tax Credit property.  In addition to the provision of housing, the Troy Housing Authority coordinates an array of programs and services intended to support residents in their efforts to attain self-sufficiency and improve their life circumstances.

About Beacon Communities

Beacon Communities has completed the construction, financial restructuring and rehabilitation of over 8,200 high quality, sustainable apartments in 60 communities in 6 states.  At Beacon Communities, we believe in living well by design-by which we mean that we building outstanding communities that make an enduring contribution to our towns and cities.