KeyBank Community Development Lending and Investment invested $10.2 million of 4% Federal LIHTC Equity and provided a $7.9 million construction loan to finance the development of Henrietta Homes. The development will consist of 40 lease-to-purchase affordable single-family homes to be built on vacant land throughout the Hough neighborhood of Cleveland, Ohio.
Henrietta Homes will target family households with incomes between 30% and 60% of area median income. The development will be partially subsidized, of which eight homes will be supported by a 20-year Section 8 project-based vouchers provided through Cuyahoga Metro Housing Authority.
Additional soft funding sources include $1.6 million from City of Cleveland Housing Trust Funds, a $450,000 Cuyahoga County HOME loan, and a $1.25 million equity bridge loan through Ohio Housing Finance Agency’s Housing Development Loan program. The project is a culmination of community planning efforts and will complement investments to revitalize the Hough neighborhood.
The Famicos Foundation is the sponsor for Henrietta Homes. The Famicos Foundation is one of Northeast Ohio’s largest nonprofit community development corporations, and its mission is to improve the quality of life in greater Cleveland through neighborhood revitalization, affordable housing, and integrated social services.
Henrietta Homes new construction will consist of 36 two-story three-bedroom homes with an unfinished basement and detached 1.5-car garage, as well as four three-bedroom one story homes with an attached 2-car garage (no basement level). The project will be built to meet Enterprise Green Communities standards to ensure energy and cost efficiencies for the tenant to maintain. Amenities include a private yard, full appliance package with dishwasher, washer, and dryer hook-ups, and in-unit alarms.
Derek Reed and Kory Clark of KeyBank CDLI structured the tax credit equity and debt financing for the transaction.
