KeyBank Community Development Lending and Investment provided a $6.4 million construction loan for Cleveland-based Burten, Bell, Carr Development, Inc., a nonprofit community development corporation, to build an affordable housing property in Cleveland.
Colfax Family Homes will comprise 36 newly constructed, lease-to-purchase, single-family homes built on vacant land on Colfax Road. The project, a culmination of community planning efforts, will complement more than $80 million of investment to revitalize the Kinsman neighborhood during the past decade.
Thirty-two of the one- to three-story houses will feature three bedrooms and one-and-a-half baths, and four of the houses will feature four bedrooms and two-and-a-half baths. The homes will feature a contemporary design unlike typical lease-to-purchase homes and be built to the Enterprise Green Communities Standard to ensure energy efficiency and cost effectiveness. The homes will be available to lease during a 15-year period to families earning 50 percent and 60 percent of the area median income. Afterward, residents will have an opportunity to purchase the homes at an affordable price with the help of subsidies.
The project will be developed using 9 percent low-income housing tax credits, which will be purchased by Ohio Capital Corporation for Housing. Additional financing includes soft loans from the Ohio Housing Finance Agency and Cleveland HOME program.
Derek Reed, Vice President of KeyBank’s CDLI team, structured the financing.
