KeyBank's $23 Million Investment Revitalizes Affordable Housing in Trotwood, Ohio

KeyBank Community Development Lending and Investment (CDLI) has recently provided a significant $23 million in financing for the construction of Jalen Lofts, a new 66-unit workforce and affordable housing community in Trotwood, a suburb of Dayton, Ohio. This substantial investment aligns with KeyBank's broader strategy of supporting community development and affordable housing initiatives across the United States.

The Jalen Lofts development represents a significant milestone in the community's efforts to rejuvenate areas adversely impacted by the 2019 Dayton tornadoes. The project is a co-developer, co-owner partnership between Pivotal Housing Partners and The Trotwood Community Improvement Corporation (TCIC), and will be located less than 15 minutes from Downtown Dayton, within proximity to Trotwood's latest developments, including a new library, courthouse, YMCA, and Goodwill Easter Seals. The development boasts a mix of 1, 2, and 3-bedroom residences, each featuring accessible and universal design features, an energy-efficient design, and an extensive array of contemporary amenities.



The City of Trotwood received a most impacted and distressed (MID) area designation by the Department of Housing and Urban Development (HUD) because of the tornado damage and was allocated $10.5 million in Community Development Block Grant Disaster Recovery (CDBG-DR) funds to recover from Presidentially declared disasters and to rebuild rental development projects. The sponsor, Pivotal Housing Partners, is a top-ranked Ohio-based multifamily developer and property management company with LIHTC properties operating in 16 states, including Ohio, Indiana, Michigan, Illinois, Iowa, Missouri, Kansa, Oklahoma, Texas, Tennessee, Georgia, Kentucky, West Virginia, Pennsylvania, North Carolina, and most recently, New York.

Derek Reed and David Lacki of KeyBank CDLI structured the financing for the transaction, which includes a $9.8 million construction loan, a $3.7 million permanent loan, and $9.4 million in low-income housing tax credit (LIHTC) financing. The use of LIHTC in this project contributes to the affordability and sustainability of the development by providing a source of financing that allows for lower rents, long-term affordability, and energy-efficient design. This results in potential long-term benefits for both residents and investors, including improved quality of life, access to community resources, and a steady stream of income.

In conclusion, KeyBank's $23 million investment in affordable housing in Trotwood, Ohio, aligns with the bank's broader strategy of supporting community development and affordable housing initiatives across the United States. The Jalen Lofts development is expected to have significant economic and social impacts on the Trotwood community, contributing to the revitalization of the area and supporting the City of Trotwood's long-term urban development plans. The use of LIHTC in the project ensures the affordability and sustainability of the development, providing long-term benefits for both residents and investors.