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 Finances $33.7 Million for Affordable Housing in Cleveland

Cleveland, OH – KeyBank Community Development Lending and Investment (CDLI) has announced significant funding for the Churchill Gateway II affordable housing project. The financing package totals $33.7 million, aimed at developing a 70-unit family housing complex that will significantly address the community’s need for affordable living options.

The project includes a $12 million construction loan from KeyBank, along with an investment of $16.1 million in Low Income Housing Tax Credit (LIHTC) equity. In addition, KeyBank’s Commercial Mortgage Group has facilitated a $5.6 million permanent loan through Freddie Mac, ensuring that the project is well-funded throughout its lifecycle.

Expansion of Affordable Housing Options

Located at 10526 Churchill Avenue in Cleveland, Churchill Gateway II represents the second phase of a crucial development along the East 105th corridor. This area links the Glenville neighborhood to the bustling job center at University Circle, making it an ideal location for families seeking affordable housing.

The project is supported by an additional $1.75 million in funding from the Ohio Housing Finance Agency, exemplifying the collaborative effort between state and local entities to bolster affordable housing initiatives in the region.

Design and Amenities

Churchill Gateway II will feature one four-story building, consisting of one-, two-, and three-bedroom units tailored for families. The income eligibility for prospective residents is set at 30-60% of the area median income, ensuring that low-income families have the opportunity to apply. Notably, nineteen units within the complex will benefit from project-based subsidies, making them even more accessible for families in need.

The NRP Group, headquartered in Cleveland, is the project’s sponsor and is recognized as a leading developer in the multifamily real estate sector. This partnership promises to ensure that the properties are well-managed and maintained, further enhancing the living experience for tenants.

Support Services for Residents

In a bid to support all prospective tenants, the May Dugan Center, a certified refugee resettlement agency, will provide crucial services to assist refugees and immigrants as they navigate the housing application process. This initiative highlights the project’s commitment to fostering inclusivity and supporting diverse communities.

Importance of Community Development

The financing for Churchill Gateway II aims to address the pressing concerns around affordable housing in Cleveland, where rental prices have surged in recent years. The project’s strategic location and comprehensive support services aim to ease the burden on families seeking quality housing in the area.

KeyBank has a strong reputation as one of the top providers of affordable housing capital in the United States, evidenced by its 11 consecutive “Outstanding” ratings from the Community Reinvestment Act (CRA) exam. The organization’s solid track record in financing low-income housing projects nationwide is highlighted by this latest investment in Cleveland.

A Milestone for KeyBank

As KeyCorp approaches its bicentennial anniversary in 2025, the institution continues to affirm its commitment to community development and affordable housing initiatives across the nation. With approximately 1,000 branches and 1,200 ATMs operating in 15 states, KeyBank’s ongoing efforts in financing projects like Churchill Gateway II reinforce its role in promoting vibrant communities and accessible housing.

Looking Forward

The construction of Churchill Gateway II not only provides high-quality affordable housing but also serves as a foundation for building stronger community ties in the growing Glenville neighborhood. As the project progresses, it aims to attract families looking for stable and affordable living arrangements while contributing positively to the local economy.

Deeper Dive: News & Info About This Topic

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