News & Press

KeyBank Arranges $17.5 Million of Financing for Affordable Senior Housing in New York

January 6, 2020

(Cleveland, Dec. 20, 2019) – KeyBank Community Development Lending and Investment (CDLI) arranged $17.5 million for Boston-based Beacon Communities Development, LLC to redevelop a senior housing property in New Hartford, N.Y. Beacon is a private real estate firm that develops, acquires, invests in and manages multifamily housing.

The second phase of the redevelopment of Meadows Senior Living, which was built in 1973, includes new construction of three, three-story energy efficient buildings with 102 units set aside for seniors age 55 and older:

  • 5 units will be for tenants earning up to 30% of area median income (AMI);
  • 46 units will be for tenants earning up to 50% of AMI;
  • 31 units will be for tenants earning up to 60% of AMI; and
  • 20 units will be for tenants earning up to 80% of AMI.

The 30% and 50% AMI units will be reserved for frail elderly and chronically homeless individuals and will receive funding for supportive services and rental subsidies provided under the Empire State Supportive Housing Initiative. All buildings will be fully accessible, with 30% of the units fully adapted to serve tenants with mobility impairment and six units equipped for tenants with a sensory impairment.

CDLI provided a $11.3 million letter of credit, which will enhance a bifurcated bond issuance from the New York State (NYS) Housing Finance Agency. KeyBank also committed to provide $6.2 million in 4% Low-Income Housing Tax Credit (LIHTC) equity.

Additional sources of soft financing include:

  • NYS Supportive Housing Opportunity Program;
  • NYS Middle Income Housing Program; and
  • NYS Energy Resource & Development Authority.

“Beacon Communities is proud to partner with NYS Homes and Community Renewal, KeyBank and Community Wellness Partners (CWP) to re-create this important senior citizen housing facility in Oneida County,” said Duncan Barrett, president of Beacon Communities Development. “Sound, energy efficient, sustainable and resilient housing designed to meet the specific needs of our senior citizens is critical to the health and well-being of communities throughout New York.”

Eric Steinberg of Key’s CDLI team and Victoria O’Brien of Key Community Development Corporation structured the financing.


About Key Community Development Lending and Investment

KeyBank Community Development Lending and Investment (CDLI) helps fulfill Key’s purpose to help clients and communities thrive by financing projects that stabilize and revitalize communities. Experts in complex tax credit lending and investing, Key is one of a handful of affordable housing lenders in the country with a platform that brings together balance sheet, equity, and permanent loan offerings. For its ability to lend to, invest in, and serve its communities – especially low-to-moderate income communities – KeyBank has earned nine consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency.

About KeyBank Real Estate Capital

KeyBank Real Estate Capital is a leading provider of commercial real estate finance. Its professionals, located across the country, provide a broad range of financing solutions on both a corporate and project basis. The group provides interim and construction financing, permanent mortgages, commercial real estate loan servicing, investment banking and cash management services for virtually all types of income producing commercial real estate. As a Fannie Mae Delegated Underwriter and Servicer, Freddie Mac Program Plus Seller/Servicer and FHA approved mortgagee, KeyBank Real Estate Capital offers a variety of agency financing solutions for multifamily properties, including affordable housing, seniors housing and student housing. KeyBank Real Estate Capital is also one of the nation’s largest and highest rated commercial mortgage servicers.

About KeyCorp

KeyCorp’s roots trace back 190 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 $146.7 billion at September 30, 2019. 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 more than 1,100 branches and more than 1,400 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.

About Beacon Communities Development, LLC

Beacon is a privately-owned real estate firm that develops, acquires, invests in, and manages a wide range of multifamily housing. The company also invests in and purchases affordable housing companies and portfolios of multifamily developments. Beacon owns and manages approximately 18,000 apartments including affordable housing, market rate housing, and mixed income-housing. Developments range from new construction, to historic adaptive reuse, to the renovation of existing housing.

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