KeyBank Community Development Lending and Investment (CDLI) secured $2 million of financing for Columbus, Ohio-based National Church Residence, the nation’s largest not-for-profit provider of affordable senior housing, to renovate an affordable senior housing property in Chillicothe, Ohio.
Hopeton Terrace is the first project in the country to be recapitalized through a new U.S. Department of Housing and Urban Development program – Rental Assistance Demonstration for Project Rental Assistance Contracts or RAD for PRAC.
The new program can help owners of Section 202 properties convert PRAC contracts to properties subsidized with project-based vouchers (PBVs) or project-based rental assistance (PBRA). This change will allow Section 202 projects to access private capital, conduct repairs and improvements, and maintain ownership in affordable housing properties. The program, which allows for long-term preservation of affordable rents and building renovation, can potentially maintain affordable homes for thousands. Until now, the program was limited to how it could address typical aging issues of these types of buildings.
Built in 1994 using HUD’s PRAC 202 Program, Hopeton Terrace consists of 45 one-bedroom apartments for adults 62 years of age and older. The renovation, which is expected to be completed in 2021, will provide safety and accessibility improvements for residents.
The Ohio Capital Corporation for Housing (OCCH) is investing $2.3 million in the project. The funds were provided via the low-income housing tax credit (LIHTC) program administered by the Ohio Housing Finance Agency (OHFA), which issued the bonds.
Additional funding from the Huntington Digital Inclusion Grant will cover the hardware and installation costs to provide high-speed wireless internet to residents at no additional cost to them.
David Lacki and Kyasia Gray of KeyBank’s CDLI team structured the financing.
