KeyBank and Raymond James Tax Credit Funds, Inc. announced Oct. 27 they have partnered on a multi-million dollar deal that will generate 66 much-needed affordable homes on the Tulalip Reservation.
The deal solidifies each party’s commitment to the Tulalip Native American community, which is working hard to solve a housing shortage of more than 225 families.
KeyBank is investing $7.3 million of Low-Income Housing Tax Credits in the project. The agreement is the second transaction in the five-year, $50 million Native American Housing Opportunities Fund II, created in 2007 between Key and Raymond James.
As the fiduciary of KeyBank’s investment, Raymond James has underwritten the deal and will manage and regulate the transaction on KeyBank’s behalf.
“This partnership gives tribal members the opportunity live in beautiful new homes, and that is very exciting,” said Mel Sheldon, Chairman of the Tulalip Tribes. “We are creating partnerships that benefit both tribal members and the surrounding communities.”
A total of 32 of the 66 new homes will be built at Mission Highlands subdivision Phase II, which will consist of 22 three-bedroom units, 7 four-bedroom units and 3 five-bedroom units. The remaining 34 units will be located at different sites on the Tulalip Reservation.
All of the housing is located near employment opportunities, and construction on the project will create jobs for tribal members. The Tulalip Tribe will provide land, property management, social services, on-site health care, financial literacy programs, child-care and infrastructure, and rent subsidies to the development’s residents for the next 15 years.
KeyBank’s ability to focus on the needs of Native American clients is made possible through its Native American Financial Services segment, which consists of specialists who focus on Native American tribal governments and their business enterprises.
KeyBank also supports the Tulalip community through a retail branch in Quil Ceda Village on the Tulalip reservation.
“We are proud to partner with an institution like Raymond James that has such a strong knowledge of the complexities of Native American laws and communities and shares our dedication to helping Native Americans,” said Mike Lettig, KeyBank Native American Financial Services national executive.
“KeyBank has long been involved in helping Native American communities to achieve financial success by recognizing the important role tribal customs, culture and laws play in business dealings,” he said.
“Through the Low-Income Housing Tax Credit program, the Tulalip Tribes will be able to provide safe, decent and affordable homes for 66 families,” said James Horvick, vice president and director of acquisitions for Raymond James Tax Credit Funds, Inc. “This is a wonderful example of creative and ingenious financing, and we are very proud to work with KeyBank and to be part of this important development.”
Currently, KeyBank provides capital and financial services to more than 60 Native American tribes and corporations, with a total credit commitment of approximately $1 billion. Of the 562 federally recognized tribes in the United States, 305 reside in KeyBank’s retail footprint.
Raymond James has a history of investing in Native American housing developments, partnering with 37 tribes over the last 10 years and investing more than $300 million in tribal Low-Income Housing Tax Credit transactions that have resulted in more than 2,800 homes being built or renovated for tribal members across the country.
The Tulalip Reservation, adjacent to the western border of the city of Marysville, covers 22,567 acres of land. The Tribes have approximately 4,500 members, with 2,600 members living on the reservation. A dedication ceremony for the project is scheduled for December.
Cleveland-based KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $98 billion. BusinessWeek magazine recently cited KeyCorp as the top-named bank in its Customer Service Champ 2009 edition, ranking the financial corporation 11th out of the top-25 companies.
Raymond James Tax Credit Funds (RJTCF) is a wholly owned subsidiary of Raymond James Financial, Inc. Since 1969, subsidiaries of RJF have been among the leading syndicators of affordable housing. RJTCF has raised more than $2.3 billion in equity for more than 1,200 properties in 43 states since the inception of the tax credit program in 1986. Each of its 45 funds has met or exceeded earnings targets with no foreclosures or tax credit recapture to date.