KeyBank has announced a significant investment in affordable housing construction in Los Angeles. The financial institution provided a loan of $25.9 million to support a new development project in Compton, California. This initiative aims to address the ongoing shortage of affordable housing in the region.
Details of the Affordable Housing Project
The project, named 1434 W. Compton Blvd LP, will feature 75 units designed to be affordable for low-income residents. The development is being executed by the Coalition for Responsible Community Development (CRCD) in partnership with LandSpire Group, LLC. This marks the first collaboration between these two organizations, which plan to construct over 1,000 affordable and supportive housing units in Greater Los Angeles over the next ten years.
Project Specifications and Amenities
Scheduled for completion in May 2027, the three-story building will comprise studio, one-bedroom, and two-bedroom units. All units will adhere to affordability standards, being priced at or below 50% of the area median income (AMI). Furthermore, the project allocates 50% of the units for permanent supportive housing.
- Unit Types: Studio, One-bedroom, Two-bedroom
- Amenities: Laundry facilities, Community room, Tot lot, Landscaped courtyard
- Additional Features: Basketball/multi-court area, Onsite parking, Resident manager
In addition to housing, on-site social services will be available, facilitated by CRCD and partnering organizations. This comprehensive support aims to improve the quality of life for residents.
Financial Partnership and Historical Context
The financing for this development was structured by Matthew Haas and Cathy Danigelis from KeyBank CDLI. KeyBank is recognized as a premier provider of capital for affordable housing projects across the United States. The bank has a strong commitment to community development, highlighted by its 11 consecutive “Outstanding” ratings on the Community Reinvestment Act exam.
Founded in 2005, the CRCD has a proven track record, having facilitated $160 million in investments. The organization has focused on enhancing the living standards for low-income residents and supporting local businesses.
Meanwhile, LandSpire Group, a relatively new entrant in the real estate sector, specializes in tackling housing affordability challenges through innovative development projects. By the end of 2025, LandSpire aims to deliver an additional 400 units of affordable housing.
Conclusion
This important investment by KeyBank represents a step forward in addressing the affordable housing crisis in Los Angeles. The collaboration between CRCD and LandSpire Group embodies a shared vision of providing sustainable housing solutions for those in need.
