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Capitol Hill's newly re-opened Holiday Apartments are just the latest product of the ongoing relationship between Key Bank and Impact Capital.
The mid-century building at East John Street and 10th Avenue East was an ideal site for Capitol Hill Housing to offer affordable, in-city apartment units. Impact Capital and Key Bank partnered to provide an acquisition/rehab bridge loan that allowed the nonprofit to make the initial purchase of the building. Capitol Hill Housing then found a low-income housing tax credit investor to proceed with rehabilitation work.
Key Bank has a long-standing institutional commitment to working with the non-profit sector in creating and preserving affordable housing," said Randy Robinson, Vice President and Team Leader for Community Development Lending for Key Bank's Northwest/Rocky Mountain region.
Key Bank is one of the oldest members of Impact Capital. Currently Robinson serves on the board and on the Fund Development Committee. Dinah Thoreson, Key Bank Vice President and Relationship Manager for Community Development Lending, is on the Loan Committee that reviews every project Impact Capital funds.
"The Loan Committee is an interesting group," Thoreson says. "By bringing together bankers and public funders we get a broad picture of what's going on in low-income housing in the state."
In addition to taking on board and committee responsibilities, Key Bank funds Impact Capital's loan pool, has an equity investment in Impact Capital, and provides an annual operating grant to Impact Capital.
"Key Bank has a history of participating with organizations like Impact Capital across the country," Thoreson says. "As banks, we are charged with making prudent lending decisions. But through our involvement in Impact Capital, we can help support housing projects that require more liberalized underwriting criteria."
Nonprofits in low-income housing and community development often lack the money required for architectural and engineering work that takes place in the early stages of a project. Impact Capital is able to answer those needs and help housing groups get projects -- like the Holiday Apartments -- off the ground.
Robinson and Thoreson noted that Impact Capital is already taking steps to help nonprofits deal with a major change in the low-income housing financing arena. Funding from the State Housing Trust Fund, which has been vitally important to low-income housing providers in Washington, has been dramatically reduced.
"Impact Capital is now structuring some loans to have a longer payoff period," Thoreson said.
Robinson noted that, in addition to helping nonprofits structure their loans, Impact Capital serves the region by taking a big picture approach to community development.
"Through LISC, Impact Capital offers education and training on various aspects of low-income housing and asset management," he said.
He also cited Impact Capital's Vibrant Communities initiative, now underway in White Center near Seattle and the International District in East Spokane. "They've come up with programs that target underserved neighborhoods and help build capacity neighborhood wide."