KeyBank Provides $53M for Affordable Project in Central California

1 min read

People’s Self Help Housing plans to develop a 68-unit community in San Luis Obispo.

Tiburon. Image courtesy of KeyBank

KeyBank Real Estate Capital has provided $53.2 million to People’s Self Help Housing for the development of Tiburon, a 68-unit affordable housing project in San Luis Obispo, Calif.

The development received funding from several sources. KeyBank provided a $28 million construction loan, a $2.3 million permanent loan and $22.9 million in low-income housing and state housing tax credit equity. The California Department of Housing and Community Development contributed with $6.4 million under the California No Place Like Home Program, while the City and County of San Luis Obispo also provided $1.1 million in funding.

KeyBank’s Matthew Haas and Greg Deeks structured the debt financing, with Becca Ickowicz and Kourtney Brown arranging the financing on the LIHTC and state equity side.

Tiburon is set to include two three-story buildings on a 2.1-acre site, with a mix of studio, one- and two-bedroom apartments. All units will be available to households or individuals earning between 25 percent and 60 percent of the area’s median income level. The units at 25 percent and 30 percent will be set aside for individuals prone to homelessness.

Long-term support

Future Tiburon residents will receive vouchers for services from Transitions Mental Health of San Luis Obispo and the County of San Luis Obispo Behavioral Health Department will provide additional services and support the cost of these services for the next two decades.

In the U.S., there were 27 severely unaffordable markets in 2021, nearly double when compared to 14 markets in 2019, according to the Urban Reform Institute and the Frontier Centre for Public Policy’s 2022 Demographia International Housing Affordability report. California has the largest concentration of severely unaffordable markets.

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