KeyBank Provides $20 Million To Advance Racial Equity With Real Estate Development

Jun 8, 2022 9:00 AM ET
Press Release

Cleveland, June 8, 2022 /3BL Media – KeyBank Community Development Lending and Investments (CDLI) provided a $20 million term loan to Enterprise Community Loan Fund Inc. (Enterprise) to support Equitable Path Forward, a $3.5 billion nationwide initiative to help dismantle the legacy of racism in housing.

Anchoring the initiative is a $350 million Growth Fund composed of loans, equity, and grants, for Black, Indigenous and people of color (BIPOC) developers to support affordable and workforce housing projects across the United States. KeyBank’s partnership with Enterprise furthers its relationships with community development financial institutions (CDFIs), allowing financial institutions the opportunity to directly invest in projects that support racial equity in underinvested communities of color.

“This investment is an opportunity for KeyBank to advance efforts in minority communities through impactful investing and build on KeyBank’s successful Community Benefit Plan,” said Derek Reed, Vice President, KeyBank CDLI.

KeyBank’s Community Benefit Plan focuses on investments in affordable housing, mortgage and small business lending and renewable energy to improve access to education and workforce development, as well as safe and vital neighborhoods.

“KeyBank’s support is instrumental as we advance racial equity in the housing industry,” said Elise Balboni, President, Enterprise Community Loan Fund. “Partnerships like this directly support developers of color whose access to capital has historically been minimized. We appreciate KeyBank’s commitment to furthering racial equity.”

Derek Reed of KeyBank’s CDLI team structured the financing.

About KeyBank Community Development Lending and Investment

KeyBank Community Development Lending and Investment (CDLI) finances projects that stabilize and revitalize communities across all 50 states. As one of the top affordable housing capital providers in the country, KeyBank’s platform brings together construction, acquisition, bridge-to-re-syndication, and preservation loans, as well as lines of credit, Agency and HUD permanent mortgage executions, and equity investments for low-income housing projects, especially Low Income Housing Tax Credit (LIHTC) financing. KeyBank has earned 10 consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency, making it the first U.S. national bank among the 25 largest to do so since the Act’s passage in 1977.

Equitable Path Forward

Equitable Path Forward is a five-year, $3.5 billion nationwide initiative to help dismantle the legacy of racism in housing. This includes what types of homes get built, where they're built, who builds them and the wealth that they generate. It’s time to invest in housing providers who are deeply engaged in their own communities. With our partners, Enterprise is paving an equitable path forward for Black, Indigenous, and People of Color (BIPOC) and other historically marginalized housing providers by:

  • Filling the capital gap created by decades of systemic racism
     
  • Strengthening providers through advisory services and other nonfinancial support
     
  • Creating new career pathways to diversify leadership in real estate

About Enterprise

Enterprise is a national nonprofit that exists to make a good home possible for the millions of families without one. We support community development organizations on the ground, aggregate and invest capital for impact, advance housing policy at every level of government, and build and manage communities ourselves. Since 1982, we have invested $54 billion and created 873,000 homes across all 50 states, the District of Columbia and Puerto Rico – all to make home and community places of pride, power and belonging. Join us at enterprisecommunity.org.

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