KeyBank Community Development Lending and Investment has assembled a multi-faceted financing package to support the construction of Clover Glen II, an affordable seniors housing community in Galloway, Ohio. The project, sponsored by National Church Residences, will deliver 96 income-restricted units designed for older adults.
The capital stack for Clover Glen II includes a $16.5 million taxable construction loan provided by KeyBank Community Development Lending and Investment. In addition to the debt component, KeyBank has committed a $9.4 million federal Low-Income Housing Tax Credit equity investment, along with an $8.2 million state LIHTC investment, to help capitalize the development.
KeyBank Commercial Mortgage Group is contributing to the permanent financing through an $8.2 million Freddie Mac Tax-Exempt Loan (TEL). This permanent loan structure is intended to take out the construction financing once the project is completed and stabilized, providing longer-term debt on the property.
Within KeyBank Community Development Lending and Investment, David Lacki and Ryan Olman structured the overall financing for the transaction, coordinating the loan and tax credit equity components. On the capital markets side, Sam Adams and Alex Steckler of KeyBanc Capital Markets underwrote the project's bonds.
KeyBanc Capital Markets served as bond underwriter for Clover Glen II and underwrote $13.82 million in tax-exempt bonds for the development. These bonds, combined with the construction financing and LIHTC equity, form the primary sources of capital for the new senior housing property.
Clover Glen II is planned as a new construction senior LIHTC community, consisting of a single four-story residential building. All units will be one-bedroom, one-bathroom apartments incorporating senior-oriented design and accessibility features, including handrails and grab bars within the residences.
The development's common-area program will include a clubhouse and fitness center to support resident activities and wellness. Additional on-site amenities will feature a central laundry facility, on-site management office, surface parking, and outdoor picnic areas, aligning the property's design with the needs of its senior resident base.
By combining construction debt, permanent agency financing, LIHTC equity, and tax-exempt bond proceeds, the Clover Glen II capital structure illustrates the layered financing approach often required to deliver affordable senior housing. The collaboration among multiple KeyBank business lines and KeyBanc Capital Markets underscores the role of specialized community development and capital markets platforms in bringing LIHTC-backed senior housing projects to fruition.
