KeyBank Provides $14.6 Million Financing for Supportive Housing in Tacoma, Washington

KeyBank Community Development Lending and Investment (CDLI) has announced its provision of $14.6 million in financing for the construction of New Life Homes, a 60-unit low-income housing project in Tacoma, Washington. This initiative aims to address the pressing need for affordable housing for individuals in recovery for substance abuse, those transitioning from the criminal justice system, formerly homeless individuals, persons with disabilities, and veterans earning no more than 30% or 50% of the Area Median Income (AMI).

New Life Homes is being sponsored and developed by Shiloh Baptist Church, a historic Black church that seeks to combat gentrification in Tacoma’s Hilltop neighborhood. By transforming several parcels along the block of South I Street into affordable housing, the church aims to provide a solution to the housing crisis. Beacon Development Group is serving as a consultant for the project.

To fund the construction of New Life Homes, Shiloh Baptist Church has leveraged various public funding sources, tax credits, and traditional financing. KeyBank CDLI has provided a $14.6 million construction loan, with LIHTC equity from National Equity Fund’s (NEF) Emerging Minority Developer Fund. KeyBank CDLI is also an investor in NEF’s fund. Additionally, Washington Community Reinvestment Association (WCRA) has contributed a permanent loan of $2.9 million, with a locked interest rate of 6.584%. The project will also receive substantial subordinate financing from sources such as the Washington State Housing Trust Fund, the City of Tacoma, Pierce County, and a GP Capital Contribution.

Supportive services for tenants, with a focus on growth, education, and skill development, will be provided by BIMA (Believing In Myself Again) Services. Veterans Affairs will coordinate with BIMA to offer services for the Veterans Affairs Supportive Housing (VASH) units.

Caleb Stephens of KeyBank CDLI structured the construction loan, showcasing the bank’s commitment to financing projects that stabilize and revitalize communities across all 50 states. KeyBank is recognized as one of the top affordable housing capital providers in the country, offering a comprehensive platform that includes 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, particularly Low-Income Housing Tax Credit (LIHTC) financing.

KeyBank’s dedication to community development is evident through its 10 consecutive “Outstanding” ratings on the Community Reinvestment Act exam, making it the first U.S. national bank among the 25 largest to achieve this since the Act’s passage in 1977.

KeyCorp, the parent company of KeyBank, traces its roots back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $195 billion as of June 30, 2023. KeyBank National Association operates through a network of approximately 1,000 branches and 1,300 ATMs, providing deposit, lending, cash management, and investment services to individuals and businesses in 15 states. KeyBanc Capital Markets, a division of KeyCorp, offers corporate and investment banking products to middle market companies in selected industries throughout the United States.

For more information about KeyBank and its services, visit https://www.key.com/. KeyBank is a Member FDIC.