CLEVELAND, Dec. 12, 2018 /PRNewswire/ -- KeyBank
Community Development Lending and Investment (CDLI) today announced
the launch of KeyBank Opportunity Zone Fund I, Inc. (the Fund). The
investment strategy will focus on affordable housing and other
community development projects within qualified opportunity zone
tracts established through the Tax Cuts and Jobs Act of 2017.
Managed by KeyBank CDLI's asset management group, the Fund will
leverage KeyBank CDLI's core competencies, over multiple real
estate cycles given the longer-term time horizon, to deliver a
solid, risk-adjusted return profile. It will target property
investments within qualified opportunity zones in KeyBank's market
footprint.
"As evidenced by our nine outstanding CRA ratings, Key has
successfully leveraged its national affordable housing platform to
assist local communities revitalize low- and moderate-income
neighborhoods. We are excited that the opportunity zone framework
provides an additional tool to help us further our efforts in the
communities we serve," said Irena
Edwards, senior vice president, KeyBank CDLI. The Fund has
an investment of $50 million, which
is projected to be invested prior to year-end.
Created by the 2017 Tax Reform Law, the new legislation allows
for favorable tax treatment of capital gains invested into
development projects, provided that the gain is placed into a
qualified Opportunity Fund. The Funds may only be invested in
neighborhoods designated by federal and local lawmakers as
"Opportunity Zones" based on a combination of U.S. Census
Bureau income data and state and local input. In addition to
deferring tax on invested capital gains, investors can reduce their
tax owed over time and pay no additional capital gains on their
Opportunity Zone Fund investment if it's held for over 10
years.
About Key Community Development Lending and
Investment
KeyBank Community Development Lending and
Investment (CDLI) helps fulfill Key's purpose to help clients and
communities thrive by financing projects that stabilize and
revitalize communities. Experts in complex tax credit lending and
investing, Key is one of a handful of affordable housing lenders in
the country with a platform that brings together balance sheet,
equity, and permanent loan offerings. For its ability to lend to,
invest in, and serve its communities – especially low-to-moderate
income communities – KeyBank has earned nine consecutive
"Outstanding" ratings on the Community Reinvestment Act exam, from
the Office of the Comptroller of the Currency.
About KeyCorp
KeyCorp's (NYSE: KEY) roots trace
back 190 years to Albany, New
York. Headquartered in Cleveland,
Ohio, Key is one of the nation's largest bank-based
financial services companies, with assets of
approximately $138.8 billion at September 30, 2018. Key
provides deposit, lending, cash management, and investment services
to individuals and businesses in 15 states under the name KeyBank
National Association through a network of over 1,100 branches and
more than 1,500 ATMs. Key also provides a broad range of
sophisticated corporate and investment banking products, such as
merger and acquisition advice, public and private debt and equity,
syndications and derivatives to middle market companies in selected
industries throughout the United
States under the KeyBanc Capital Markets trade name. For
more information, visit https://www.key.com/. KeyBank is Member
FDIC.
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SOURCE KeyCorp