KeyBank Community Development Lending and Investment (CDLI) provided $20.2 million for the construction of new affordable housing in Anchorage, AK. CDLI provided $9 million in Low-Income Housing Tax Credit (LIHTC) equity, a $10 construction loan and a $1.3 million permanent loan to finance the new construction of Ch’bala Corners II, a 38-unit, family project developed and managed by Cook Inlet Housing Authority (CIHA). (Ch’bala is the Upper Cook Inlet Dena’ina word for spruce.) KeyBanc Capital Markets (KBCM) also sold $10 million of tax- exempt bonds through a public offering, the proceeds of which will be used to support the financing of the project.
Ch’bala Corners II consists of three 8-plex buildings, three 4-plex buildings and one duplex. Of the 38 units, 23 units will be restricted at 50% area median income (AMI) and 15 units will be restricted at 60% AMI. Eight units will be set aside for disabled households, and eight units will be set aside for homeless households. Ch’bala Corners will proudly house eligible Alaska Native/Native America families.
Ch’bala Corners II also received local support and engagement including soft financing from the following:
- US Department of Housing and Urban Development Indian Housing Block Grant funds
- State of Alaska Supplemental Grants Program (SGP) funds
- Federal Home Loan Bank of Des Moines Affordable Housing Program (FHLB AHP) grant funds
- Municipality of Anchorage HOME Investment Partnerships Program grant funds
- Municipality of Anchorage American Rescue Plan Act (ARPA) grant funds
- State of Alaska Community Development Block Grant Program (CDBG) disaster relief funds.
Residents at Ch’bala Corners II will have access to a variety of programs and services, provided by CIHA Resident Services and local partners, that support health, wellness, community engagement and financial self-sufficiency.
“We are grateful for the financial support of KeyBank Community Development Lending and Investment and KeyBanc Capital Markets in the development of Ch’bala Corners II. Affordable housing financing is complex and multifaceted,” said Gabe Layman, President/CEO, Cook Inlet Housing Authority. “We appreciate the professionals at KeyBank CDLI and KBCM for thoughtfully navigating this process with us, allowing for the addition of 38 units of much needed affordable housing in our community. Affordable housing is the foundation that helps families stabilize and thrive.”
“We are excited to work with Cook Inlet Housing Authority to invest in Ch’bala Corners II because it is community-based and serves the needs of our most vulnerable neighbors,” said Kortney Brown, senior relationship manager with KeyBank CDLI. “Cook Inlet Housing Authority’s ability to partner and collaborate with other agencies and providers is representative of how complex affordable housing projects can be successfully completed.”
Kortney Brown and Brett Sheehan of KeyBank CDLI structured the financing. Ila Afsharipour of KeyBanc Capital Markets Public Finance Group provided the bond underwriting.