KeyBank Provides $14.6 Million of Financing for Supportive Housing in Tacoma, Washington (Tacoma HA)

Date Published: 
October 10th, 2023

From KeyBank's press release:

KeyBank Community Development Lending and Investment (CDLI) provided $14.6 million financing for the construction of New Life Homes, a 60-unit low-income housing project on Hilltop in Tacoma, WA. This project will help to address the dire need for affordable housing serving individuals in recovery for substance abuse, those leaving the criminal justice system, formerly homeless persons, persons with disabilities, and veterans earning no more than 30% or 50% of AMI (Area Median Income).

New Life Homes is sponsored and developed by Shiloh Baptist Church with Beacon Development Group serving as consultant. Shiloh Baptist Church is a historic Black church that wants to combat gentrification on Tacoma's Hilltop by transforming several of its parcels along the block of South I Street into affordable housing. With the assistance of Tacoma Housing Authority, the church has leveraged several public funding sources along with tax credits and traditional financing to construct New Life Homes.

KeyBank CDLI provided a $14.6 million construction loan with LIHTC equity provided by National Equity Fund's (NEF) Emerging Minority Developer Fund. NEF is a tax credit syndicator, and KeyBank CDLI is also an investor in NEF's Emerging Minority Developer Fund.

Washington Community Reinvestment Association (WCRA) provided a permanent loan of $2.9 million with the interest rate locked at 6.584%. In addition, the project will have substantial subordinate financing from multiple sources, including $6 million from the Washington State Housing Trust Fund, $4.4  million from the City of Tacoma, $5 million from Pierce County and a $1.1 million GP Capital Contribution (Land).

Supportive services for tenants with a focus on creating opportunities for growth, education, and skill development will be provided by BIMA (Believing In Myself Again) Services. Veterans Affairs will provide services for the Veterans Affairs Supportive Housing (VASH) units and coordinate with BIMA, the service provider for the site, as appropriate.

Caleb Stephens of KeyBank CDLI structured the construction loan.

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