KeyBank Provides $31.7 Million of Financing for Affordable Multifamily Housing in California
CLEVELAND, October 4, 2023 /3BL/ – KeyBank Community Development Lending and Investment (CDLI) provided a $31.7 million construction loan and KeyBanc Capital Markets provided a floating-to-fixed interest rate swap for the development of an affordable multifamily housing property in Petaluma, California.
Petaluma River Place includes a mix of one, two, and three-bedroom layouts for a total of 50-units available to households earning no more than 20%, 30%, and 60% of the area median income (AMI). Situated on 1.78-acres, the garden-style apartment community will offer amenities such as a community room with an office, maintenance room, bike room, laundry facility, a community garden, and a dog run. An on-site manager will also be available for residential assistance. The property will receive 12 project-based Section 8 vouchers from the Sonoma County Housing Authority.
The project sponsor, Burbank Housing Development Corporation (BHDC), is an established nonprofit public benefit corporation founded in 1980. Since then, BHDC has led the region in creating and maintaining quality, sustainable housing and rental opportunities, inspiring understanding, and acceptance of affordable housing initiatives, fostering community development and revitalization, and providing opportunities for affordable housing. They have developed over 70 properties in Sonoma and Napa County, creating over 3,400 units of affordable rental housing, as well as building and selling over 950 affordable homes.
The project received local support in the form of $23.7 million in financing from the California Department of Housing and Community Services (HCD) and its California Housing Accelerator Program (CHAP), $4.3 million from the HCD No Place Like Home (NPLH) Funds, and $5.7 million from the HCD Joe Serna Farmworker Housing Funds. Additional financing included $550,000 from the Rural Community Assistance Corporation (RCAC) Capital Magnet Funds, $492,000 from the Community Development Block Grant (CDBG) DR Funds, $700,000 in capital contributions from Providence Funds, and $200,000 in General Partner (GP) Capital Contribution.
Petaluma River Place is located in a residential community with easy access to nearby schools, medical offices and clinics, social services, churches, retail, and employment opportunities. The community of Petaluma is approximately 40 miles north of San Francisco.
Matthew Haas and Karen Roche of KeyBank CDLI structured the financing. Sam Donzelli of KeyBanc Capital Markets provided the interest rate swap.
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.
