KeyBank Provides $34.3M Financing for Six Affordable Communities in Chicago

by Jeff Shaw

CHICAGO — KeyBank Community Development Lending and Investment (CDLI) has provided $34.3 million in construction and permanent financing through the HUD 221(d)(4) Mortgage Insurance program to facilitate the 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 is Evergreen Real Estate Group. The properties are owned by an LIHTC partnership created by the Housing and Human Development Corp. (HHDC).

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 in 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. Community-wide enhancements include elevator modernization; upgrades to mechanical, electrical and plumbing systems; and replacement of existing roofs, masonry and exteriors.

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.

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