KeyBank Community Development Lending and Investment (CDLI) provided a $4 million construction loan, $6.3 million in Low-Income Housing Tax Credit (LIHTC) equity and arranged permanent financing with a $10.1 million Freddie Mac TEL for the acquisition and rehabilitation of Salem Manor, an existing family affordable housing project that was at risk of being converted to market rate housing in Salem Oregon.
The project sponsor, Hampstead Development Partners, Inc., is an experienced developer focused on the development, acquisition and rehabilitation, and operation of affordable properties. KeyBank previously provided the acquisition bridge loan for resyndication for Hampstead to acquire and preserve this property.
Hampstead will immediately begin a $4 million rehabilitation of the property, which will include modernization of kitchens and bathrooms, full ADA accessibility upgrades to select units, upgrades to the buildings electrical system to ensure tenant safety, the addition of a fitness center and full exterior upgrades (windows, paint, siding, roofs) to select buildings that remain in original condition.
The project offers 64 total units for families and individuals earning no more than 60% of the area median income (AMI) and is subsidized by a Section 8 Housing Assistant Payment (HAP) Contract. The 10-building property is located on the eastern side of the City of Salem in a mixed-use neighborhood with major shopping, schools, and recreational amenities located nearby.
John Paul Vachon, Matthew Haas and Hector Zuniga of KeyBank CDLI structured the financing.
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.
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.