Published: Saturday, October 31, 2009
KeyBank to finance Tulalip housing project
MARYSVILLE — The Tulalip Tribes could soon be 66 homes closer to solving its housing crisis, following a multimillion dollar deal with KeyBank.
The bank announced this week it is financing the construction of single-family homes on the Tulalip reservation, a giant step toward meeting the tribal federation’s goal of finding housing for low-income families.
“Currently the Housing Department has a waiting list of approximately 300 persons. So this provides much-needed relief,” said Norma Razote, acting housing manager for Tulalip Tribal government.
KeyBank is using $7.3 million in low-income housing tax credits to finance the project, part of the bank’s $50 million Native American Housing Opportunities Fund.
Mike Lettig, the Bellevue-based executive of KeyBank Native American Financial Services, said owning a home on tribal land is difficult given restrictions on mortgaging and repossessing properties placed in trusts for tribal members.
“Homeownership is one of the aspirations of everyone in America,” Lettig said. “It is a little more difficult in Indian country. It really does require a partnership with the private sector.”
Raymond James Tax Credit Funds is underwriting and managing the project.
About half of the new homes will be built at a Mission Highlands subdivision, consisting of 22 three-bedroom homes, and 10 four- and five-bedroom homes. The others will be located at other sites around the reservation.
This is the second of two deals coordinated by Key’s housing fund. Lettig said it’s a low-risk investment from the bank’s perspective.
“The tribes are stable, they’re not going to merge with anyone,” he said. “And they have as much — or more — integrity as any other client a commercial bank can do business with.”
The units are designed to house families making 60 percent or less of the median income for Snohomish County.
“Preference is given to Tulalip Tribal members, their spouses and parents, then other Native Americans,” Razote said.
For 15 years, the homes will jointly owned by the Tulalips, KeyBank and Raymond James. After that, the units will be owned exclusively by the Tulalip Tribes.
The first eight units will be leased by Jan. 31. Construction is scheduled for completion on Oct. 31, 2010.
Read Amy Rolph’s small-business blog at www.heraldnet.com/TheStorefront. Contact her at 425-339-3029 or arolph@heraldnet.com.
The bank announced this week it is financing the construction of single-family homes on the Tulalip reservation, a giant step toward meeting the tribal federation’s goal of finding housing for low-income families.
“Currently the Housing Department has a waiting list of approximately 300 persons. So this provides much-needed relief,” said Norma Razote, acting housing manager for Tulalip Tribal government.
KeyBank is using $7.3 million in low-income housing tax credits to finance the project, part of the bank’s $50 million Native American Housing Opportunities Fund.
Mike Lettig, the Bellevue-based executive of KeyBank Native American Financial Services, said owning a home on tribal land is difficult given restrictions on mortgaging and repossessing properties placed in trusts for tribal members.
“Homeownership is one of the aspirations of everyone in America,” Lettig said. “It is a little more difficult in Indian country. It really does require a partnership with the private sector.”
Raymond James Tax Credit Funds is underwriting and managing the project.
About half of the new homes will be built at a Mission Highlands subdivision, consisting of 22 three-bedroom homes, and 10 four- and five-bedroom homes. The others will be located at other sites around the reservation.
This is the second of two deals coordinated by Key’s housing fund. Lettig said it’s a low-risk investment from the bank’s perspective.
“The tribes are stable, they’re not going to merge with anyone,” he said. “And they have as much — or more — integrity as any other client a commercial bank can do business with.”
The units are designed to house families making 60 percent or less of the median income for Snohomish County.
“Preference is given to Tulalip Tribal members, their spouses and parents, then other Native Americans,” Razote said.
For 15 years, the homes will jointly owned by the Tulalips, KeyBank and Raymond James. After that, the units will be owned exclusively by the Tulalip Tribes.
The first eight units will be leased by Jan. 31. Construction is scheduled for completion on Oct. 31, 2010.
Read Amy Rolph’s small-business blog at www.heraldnet.com/TheStorefront. Contact her at 425-339-3029 or arolph@heraldnet.com.
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