KeyBank Provides $46 Million of Financing for Affordable Housing Community in Utah
CLEVELAND, September 25, 2023 /3BL/ – KeyBank Community Development Lending and Investment provided a $8.6 million equity bridge loan and $13.1 million in 4% federal Low-Income Housing Tax Credit (LIHTC) equity for the acquisition and rehabilitation of an affordable housing community in Layton, Utah. The project also received permanent financing from KeyBank Real Estate Capital (KBREC) which secured a $24.2 million Freddie Mac tax-exempt loan (TEL).
Skyline View Apartments is a three-property, 112-unit affordable housing community available to low-income families earning no more than 50% and 60% of the area median income (AMI) and is subsidized by a Section 8 Housing Assistant Payment (HAP) Contract.
Skyline View includes eight garden-style buildings entirely consisting of two-bedroom units. Situated on a total of 5.2 acres, families will have access to laundry facilities, playgrounds, a community garden, and a storage area as well as an on-site property manager. The three properties, originally built in 1974, 1975, and 1978, will receive renovations, which will include modernization of kitchens and bathrooms, full ADA accessibility upgrades to select units, and full exterior upgrades (windows, paint, siding, roofs). Skyline View is located within a residential neighborhood with major shopping, schools, and recreational amenities located nearby.
The project sponsor, Hampstead Development Partners, Inc., (HDP) is an experienced developer focused on the development, acquisition and rehabilitation, and operation of affordable properties. KeyBank has worked closely with HDP to close numerous deals, including just recently a project in June 2023.
“The preservation of the Skyline View Apartments will help to address the substantial need for affordable housing in Utah,”said Robert Likes, president of KeyBank Community Development Lending and Investment (CDLI). “KeyBank is invested in the expansion of its community impact, and we continue to provide more capital to low-income communities throughout the country.”
Nathan Dickinson, Jonathan Wittkopf and Hector Zuniga of KeyBank CDLI structured the financing.
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 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 $195 billion at June 30, 2023. 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 1,300 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 is Member FDIC.
