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 KeyBank is Member FDIC.

KeyBank (PRNewsFoto/KeyCorp) (PRNewsfoto/KeyCorp)

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