KeyBank Provides $34.3 Million of Financing for the Rehabilitation of Six Affordable Housing Properties in Chicago

Apartments to serve low income seniors, families and residents with disabilities
Jan 24, 2024 9:00 AM ET
KeyBank Logo with red key.

CLEVELAND, January 24, 2024 /3BL/ – KeyBank Community Development Lending and Investment (CDLI) provided a $34.3 million in construction and permanent financing through the HUD 221(d)(4) Mortgage Insurance program to facilitate the substantial rehabilitation of six low-income apartment buildings in the South Shore of Chicago. The 6900 Crandon Apartments provides 151 units for elderly and disabled residents subsidized under a project -based Section 8 contract. The remaining five apartment building provide 126 units for families.

The sponsor for the South Shore apartments is Evergreen Real Estate Group (Evergreen), a fully integrated real estate company that develops, acquires, and manages affordable and market-rate multifamily communities across 12 states. The properties are owned by a LIHTC partnership created by the Housing and Human Development Corporation (HHDC), a non-profit public housing facility in Chicago, whose mission is to promote affordable housing and provide services to low-income residents and families.

The project also received LIHTC and tax-exempt bond allocations from Illinois Housing Development Authority (IHDA). KeyBanc Capital Markets served as the sole manager and underwriter for the $55.1 million bonds.

The funds will be used to improve tenant quality of life and sustainability of the apartments over the long term. Improvements include new cabinets, countertops, flooring, energy efficient appliances and fixtures for resident units as well as elevator modernization, upgrades to mechanical, electrical and plumbing systems and replacement of existing roofs, masonry and exterior repairs

HHDC serves as the owner/operation and will provide on-site social service coordinators (2.5 FTE) to connect residents to a variety of community based social service providers and assist residents in determining eligibility for various government services including health care and health care education, financial literacy and computer literacy, childcare, youth activities, nutritional services, disability services, tenant home ownership training and parenting programs.

Leslie Meyers and Robbie Lynn of KeyBank CDLI structured the HUD 221 (d)(4) financing, and Sam Adams of KeyBanc Capital Markets marketed the bonds.

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 $188 billion at September 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 KeyBank is Member FDIC.