KeyBank Secures $20.3 Million of Financing for Multifamily Housing Property in Anchorage, AK.
CLEVELAND, August 15, 2023 /3BL/ – KeyBank Community Development Lending and Investment (CDLI) provided $20.2 million for the construction of new affordable housing in Anchorage, AK. CDLI provided $9 million in Low-Income Housing Tax Credit (LIHTC) equity, a $10 construction loan and a $1.3 million permanent loan to finance the new construction of Ch’bala Corners II, a 38-unit, family project developed and managed by Cook Inlet Housing Authority (CIHA). (Ch’bala is the Upper Cook Inlet Dena’ina word for spruce.) KeyBanc Capital Markets (KBCM) also sold $10 million of tax- exempt bonds through a public offering, the proceeds of which will be used to support the financing of the project.
Ch’bala Corners II consists of three 8-plex buildings, three 4-plex buildings and one duplex. Of the 38 units, 23 units will be restricted at 50% area median income (AMI) and 15 units will be restricted at 60% AMI. Eight units will be set aside for disabled households, and eight units will be set aside for homeless households. Ch’bala Corners will proudly house eligible Alaska Native/Native America families.
Ch’bala Corners II also received local support and engagement including soft financing from the following:
- US Department of Housing and Urban Development Indian Housing Block Grant funds
- State of Alaska Supplemental Grants Program (SGP) funds
- Federal Home Loan Bank of Des Moines Affordable Housing Program (FHLB AHP) grant funds
- Municipality of Anchorage HOME Investment Partnerships Program grant funds
- Municipality of Anchorage American Rescue Plan Act (ARPA) grant funds
- State of Alaska Community Development Block Grant Program (CDBG) disaster relief funds.
Residents at Ch’bala Corners II will have access to a variety of programs and services, provided by CIHA Resident Services and local partners, that support health, wellness, community engagement and financial self-sufficiency.
“We are grateful for the financial support of KeyBank Community Development Lending and Investment and KeyBanc Capital Markets in the development of Ch’bala Corners II. Affordable housing financing is complex and multifaceted,” said Gabe Layman, President/CEO, Cook Inlet Housing Authority. “We appreciate the professionals at KeyBank CDLI and KBCM for thoughtfully navigating this process with us, allowing for the addition of 38 units of much needed affordable housing in our community. Affordable housing is the foundation that helps families stabilize and thrive.”
"We are excited to work with Cook Inlet Housing Authority to invest in Ch’bala Corners II because it is community-based and serves the needs of our most vulnerable neighbors," said Kortney Brown, senior relationship manager with KeyBank CDLI. "Cook Inlet Housing Authority’s ability to partner and collaborate with other agencies and providers is representative of how complex affordable housing projects can be successfully completed.”
Kortney Brown and Brett Sheehan of KeyBank CDLI structured the financing. Ila Afsharipour of KeyBanc Capital Markets Public Finance Group provided the bond underwriting.
About Cook Inlet Housing Authority
Cook Inlet Housing Authority’s (CIHA) mission is to create housing opportunities that empower our people and build our communities. CIHA develops, owns, and operates affordable housing in the Cook Inlet region of Southcentral Alaska. https://cookinlethousing.org
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 KeyBanc Capital Markets
KeyBanc Capital Markets is a leading corporate and investment bank providing capital markets and advisory solutions to dynamic companies capitalizing on opportunities in changing industries. Our deep industry expertise, broad capabilities and unique ideas are seamlessly delivered to companies across the Consumer & Retail, Diversified Industries, Healthcare, Industrial, Oil & Gas, Real Estate, Utilities, Power & Renewables, and Technology verticals. With over 800 professionals across a national platform, KeyBanc Capital Markets has more than $50 billion of capital committed to clients and an award-winning Equity Research team that provides coverage on nearly 600 publicly traded companies. Securities products and services are offered by KeyBanc Capital Markets Inc., member FINRA/SIPC, and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services, are offered by KeyBank N.A.
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 $195 billion at June 30, 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.
