KeyBank Funds Affordable Housing Development in Cleveland

News Summary

KeyBank Community Development Lending and Investment has provided a $33.7 million financing package for the Churchill Gateway II affordable housing project in Cleveland. This initiative includes a $12 million construction loan, $16.1 million in Low Income Housing Tax Credit equity, and aims to create a 70-unit family housing complex. Located at 10526 Churchill Avenue, this project is part of ongoing efforts to expand affordable housing options in the region, supported by both local and state agencies.

KeyBank Funds $33.7 Million for Affordable Housing Development in Cleveland

KeyBank has stepped up to play a crucial role in addressing the urgent need for affordable housing in Cleveland by providing financing of $33.7 million for the Churchill Gateway II project. This initiative signifies a significant investment aimed at offering high-quality, affordable housing options in the growing Glenville neighborhood.

Details of the Financing Structure

The financing package includes a $12 million construction loan and an investment of $16.1 million in Low Income Housing Tax Credit (LIHTC) equity, both provided by KeyBank’s Community Development Lending and Investment (CDLI) division. Additionally, the KeyBank Commercial Mortgage Group played a pivotal role in organizing a $5.6 million Freddie Mac permanent loan for the project. The Ohio Housing Finance Agency also contributed $1.75 million to further ease the financial requirements for the development.

Project Overview

Located at 10526 Churchill Avenue, Churchill Gateway II will feature a single four-story building comprising 70 units designed for families. The housing complex will offer a mix of one-, two-, and three-bedroom apartments, targeting individuals and families earning between 30-60% of the area median income.

To enhance accessibility, nineteen units within the complex will have project-based subsidies, which will help lower-income families afford their rent while enabling them to thrive in a supportive community.

Community Support and Collaboration

This project has garnered significant support from both state and local institutions, emphasizing its importance in bridging the Glenville neighborhood to the job center at University Circle. The development serves as the second phase of a larger initiative along the East 105th corridor, aiming to revitalize the area by enhancing the availability of affordable housing options.

The NRP Group, known for its expertise in multifamily real estate development and property management, is the project’s sponsor. The company has established itself as one of the top developers in the United States, further reinforcing the project’s potential for success.

Support Services for Residents

In addition to providing residences, the project will also support future tenants through essential services. The May Dugan Center, a certified refugee resettlement agency, is set to assist residents in securing housing and orienting them to their new environment, particularly focusing on refugees and immigrants.

The Bigger Picture

The financing for Churchill Gateway II is a vital response to rising rental costs in Cleveland, which have created a significant demand for affordable housing. By aiming to alleviate some of the pressures faced by local families, this project is not just about building structures; it also involves creating a sustainable community.

KeyBank’s long-standing commitment to affordable housing is noteworthy, as the bank has earned 11 consecutive “Outstanding” ratings on the Community Reinvestment Act exam, further indicating its dedication to supporting low-income housing projects across the United States. With plans to celebrate its bicentennial in 2025, KeyBank continues to expand its footprint by operating approximately 1,000 branches and 1,200 ATMs across fifteen states.

Conclusion

The Churchill Gateway II project represents a significant step towards meeting the affordable housing needs in Cleveland. Through collaborative efforts and extensive support from financial institutions and community organizations, it aims to create a more inclusive environment for residents while fostering economic growth in the area.

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Additional Resources

• Crain’s Cleveland: KeyBank Finances $33.7 Million for Affordable Housing in Cleveland
• Wikipedia: Affordable Housing
• RE Journals: KeyBank Expands Affordable Housing Platform
• Google Search: Affordable Housing Cleveland
• Freshwater Cleveland: New Initiative for 3,000 Affordable Homes
• Encyclopedia Britannica: Housing
• Cleveland 19: Mayor Announces New Plan to Expand Affordable Housing
• Google News: Affordable Housing Initiatives Cleveland