KeyBank Provides $18.1 Million of Financing for the Construction of New Affordable Single Family Homes in Cleveland
Henrietta Homes will consist of 40 lease-to-purchase homes in the Hough neighborhood
CLEVELAND, February 09, 2024 /3BL/ – KeyBank Community Development Lending and Investment (CDLI) invested $10.2 million of 4% Federal LIHTC Equity and provided a $7.9 million construction loan to finance the development of Henrietta Homes. The development will consist of 40 lease-to-purchase (LTP) affordable single-family homes, to be built on vacant land throughout the Hough neighborhood of Cleveland, Ohio.
Henrietta Homes will target family households with incomes between 30% and 60% of area median income (“AMI”). The development will be partially subsidized, of which eight homes will be supported by a 20-year Section 8 project-based vouchers (“PBV”) provided through Cuyahoga Metro Housing Authority. Additional soft funding sources include $1.6 million from City of Cleveland Housing Trust Funds, a $450,000 Cuyahoga County HOME loan, and a $1.25 million equity bridge loan through Ohio Housing Finance Agency’s Housing Development Loan program. The project is a culmination of community planning efforts and will complement investments to revitalize the Hough neighborhood.
The Famicos Foundation is the sponsor for Henrietta Homes. The Famicos Foundation is one of Northeast Ohio’s largest nonprofit community development corporations, and its mission is to improve the quality of life in greater Cleveland through neighborhood revitalization, affordable housing, and integrated social services.
Henrietta Homes new construction will consist of 36 two story three bedrooms homes with an unfinished basement and detached 1.5 car garage, as well as four three-bedroom one story homes with an attached 2-car garage (no basement level). The project will be built to meet Enterprise Green Communities standards to ensure energy and cost efficiencies for the tenant to maintain. Amenities include a private yard, full appliance package with dishwasher, washer, and dryer hook-ups, and in-unit alarms.
The homes will be available to lease during a 15 -year period, and at year 16, residents will have an opportunity to purchase the home at an affordable price. Famicos will prepare tenants to transition into homeownership by providing financial training and homeownership counseling during the 15-year leasing period.
The development is close to public transportation and within two miles from the Cleveland Clinic and University Hospitals main campuses. Henrietta Homes is also located near grocery stores, numerous restaurants, and schools.
Derek Reed and Kory Clark of KeyBank CDLI structured the tax credit equity and debt financing for the transaction.
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 $188 billion at December 31, 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.
