TACOMA, WASH. — KeyBank Community Development Lending and Investment (CDLI) has provided $14.6 million in financing for the construction of New Life Homes, a 60-unit low-income housing project in Hilltop in Tacoma. The community is designated for individuals in recovery for substance abuse, those leaving the criminal justice system, formerly homeless persons, persons with disabilities and veterans earning no more than 30 percent or 50 percent of area median income.
Shiloh Baptist Church, with Beacon Development Group as consultant, is sponsoring and developing New Life Homes. Shiloh Baptist Church, a historically Black church, wants to combat gentrification on Tacoma’s Hilltop neighborhood by transforming several of its parcels along the block of South I Street into affordable housing. With the assistance of Tacoma Housing Authority, the church has leveraged several public funding sources along with tax credits and traditional financing to construct New Life Homes.
Believing In Myself Again (BIMA) Services will provide supportive services for tenants with a focus on creating opportunities for growth, education and skill development. Veterans Affairs will provide services for the Veterans Affairs Supportive Housing units and coordinate with BIMA.
KeyBank CDLI provided a $14.6 million construction loan with LIHTC equity provided by National Equity Fund (NEF). NEF is a tax credit syndicator, and KeyBank CDLI is also an investor in NEF’s Emerging Minority Developer Fund. Caleb Stephens of KeyBank CDLI structured the construction loan.
Washington Community Reinvestment Association (WCRA) provided a $2.9 million permanent loan with a locked interest rate. Additional financing includes $6 million from Washington State Housing Trust Fund, $4.4 million from the City of Tacoma, $5 million from Pierce County and a $1.1 million GP Capital Contribution (land).