KeyBank Provides $95.2 Million for Affordable Housing Development in Auburn, WA
Villas at Auburn and the Reserve at Auburn projects will add 592 affordable housing units for seniors and families.
CLEVELAND, December 1, 2016 /3BL Media/ — KeyBank’s Community Development Lending & Investing (CDLI) group announced today it has provided $95.2 million in tax exempt bond financing to construct almost 600 units of 4% LIHTC affordable apartments in Auburn, Washington, called the Villas at Auburn and the Reserve at Auburn. Upon completion, the Villas at Auburn will offer 295 units of affordable housing for families; the Reserve at Auburn will offer 297 units of affordable housing for seniors. Both projects will serve residents making 60 percent or less of the area median income.
“The Reserve and Villas at Auburn apartments address the national affordable housing crisis by providing two vulnerable groups with crucial support,” said Rob Likes, national manager of Key’s CDLI team. “We’re proud to help finance the simultaneous construction of affordable housing for both seniors and families in Auburn, Washington.”
The CDLI team provided a $47 million construction loan for the Reserve at Auburn, with a $40.6 million Freddie Mac Tax Exempt Loan (TEL) component arranged by Key’s Commercial Mortgage Group. Its companion project, the Villas at Auburn, is financed by a $48.2 million construction loan from the CDLI team and a $40.9 million Freddie Mac TEL arranged by Key’s Commercial Mortgage Group. The tax exempt bonds were issued by the Washington State Housing Finance Commission. Victoria Quinn of Key’s CDLI group and Al Beaumariage of Key’s Commercial Mortgage Group arranged the financing.
“Villas and Reserve will make a marked difference in the Auburn community,” said Al Beaumariage, Affordable Housing Program Manager of KeyBank’s Commercial Mortgage Group. “These financings are yet another example of how Key’s coordinated construction and perm execution provides an efficient and cost effective solution for affordable developers.”
“It is our goal to ensure every person in need has access to safe and affordable housing in their respective neighborhood,” said Craig Thomas, senior vice president of AVS Communities. “We look forward to partnering with Key to bring meaningful change for families in and around Auburn.” AVS Communities and affiliates focus on developing high quality, highly amenitized affordable apartments, with 1,742 units in various stages of development in the greater Seattle and Puget Sound region.
In addition to the nearly 600 units of affordable housing, the two properties will provide tenants with many amenities typically reserved for “market rate” projects and will be a very attractive housing option for those with incomes at or below 60 percent of the Area Median Income (AMI).
“Our CDLI platform allows us to combine financing solutions, like construction loans with permanent financing, to build the projects that will have the most impact on the communities we serve,” said Quinn. “We’re getting the opportunity to watch our work make a real difference for seniors and families in need – and that is very rewarding.”
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. CLDI 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 (NYSE: KEY) 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 billion at September 30, 2016. Key provides deposit, lending, cash management, insurance, and investment services to individuals and businesses in 15 states under the name KeyBank 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. For more information, visit https://www.key.com/. KeyBank is Member FDIC.
