KeyBank – which is based in Cleveland but has been expanding into the California market – recently provided more than $50 million in construction and low-income housing tax credit financing for two affordable housing projects in Los Angeles.
The first project, at 121 N. Mathews St. in Boyle Heights, will be four stories featuring six one-bedroom apartments, 33 two-bedroom apartments and a manager’s unit. Four units will be reserved for people earning 30% of the area median income (AMI). In 2024, for a two-person household that equated to $33,300, according to the L.A. County Department of Regional Planning.
Another four will go to those with 50% AMI ($55,450 for two people); 23 units will be at 60% AMI ($66,540 for two people); and then eight units will go to 80% AMI ($88,800 for two people).
The next project, 6018 Brynhurst Ave. in Hyde Park, will be a four-story 50 unit building with seven one bedrooms, 42 two bedrooms and a manager’s unit. Similar to the first project, the majority of units – in this case, 29 – will go to households earing 60% AMI. Five units will be reserved for 30% AMI, another five will be for 50% AMI and 10 will be at 80% AMI.
Matthew Haas, a senior relationship manager for KeyBank’s Community Development Lending and Investment division, said these projects caught his eye for several reasons including the sites’ proximities to L.A. Metro rail stations and an impressive cost per unit. Developed by Irvine-based real estate firm HVN Development, the projects see an average cost per unit of about $333,000. Meanwhile, the cost per unit to build affordable housing in L.A. “regularly tops $1 million,” according to real estate insights platform CoStar News.
Haas said he was excited to partner with HVN Development, noting that the firm’s Chief Executive Tommy Beadel is “very committed in trying to relieve the crisis that’s happening in the county of LA.”
Additionally, Haas pointed out the need for more dense housing…
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