KeyBank Provides $37.5M for Affordable Housing Renovations in New Haven, Connecticut

NEW HAVEN, Conn. — KeyBank has funded a $37.5 million financing package for Community Preservation Partners (CPP) and Hampstead Development Partners, which will use the funds to acquire and renovate an affordable seniors housing property in New Haven.

Originally built in 1973, Fairbank Apartments, a Section 8 property on one acre of land, consists of 121 units (106 one-bedroom and 15 two-bedroom) and one ground-level retail bay in a nine-story building. KeyBank operates a branch out of the retail space.

The property will have a Housing Assistance Payments (HAP) contract covering 112 units for 20 years. The nine other units also will operate as tax-credit units. In addition, 96 of the units will be restricted to residents earning up to 60 percent of area median income (AMI), while 25 units will be restricted to 50 percent AMI.

KeyBank’s Community Development Lending and Investment (CDLI) and KeyBank Real Estate Capital’s (KBREC’s) Commercial Mortgage Group (CMG) worked together to provide $12.5 million of low-income housing tax credit equity, a $6 million equity bridge loan, an approximately $19 million public bond offering and $19 million of Fannie Mae tax-exempt bond collateral.

The New Haven Housing Authority issued the tax-exempt bonds. Jonathan Wittkopf of KeyBank’s CDLI team, Robbie Lynn of KBREC’s CMG team, and Victoria O’Brien and John-Paul Vachon of Key Community Development Corp. structured the financing. Sam Adams of KeyBanc Capital Markets’ Public Finance Group served as the bond underwriter.