SNOHOMISH, Wash. – KeyBank and Raymond James Tax Credit Funds, Inc. have partnered on a multi-million dollar deal that will generate 66 much-needed affordable homes on the Tulalip Reservation in Snohomish County, Washington.
The deal solidifies each party’s commitment to the Tulalip Native American community, which is working hard to solve a housing shortage for more than 225 families.
Key is investing $7.3 million of Low-Income Housing Tax Credits in the project, and the deal is the second transaction in the five-year, $50 million Native American Housing Opportunities Fund II. The fund was created in 2007 between Key and Raymond James. As the fiduciary of Key’s investment, Raymond James has underwritten the deal and will manage and regulate the transaction on Key’s behalf.
“This partnership gives tribal members the opportunity to live in beautiful new homes, and that is very exciting,” said Mel Sheldon, chairman of the Tulalip Tribes. “We are creating partnerships that benefit both tribal members and the surrounding communities.”
Thirty-two of the 66 new homes will be built at Mission Highlands subdivision Phase II, which will consist of (22) three bedroom units, (7) four bedroom units and (3) five bedroom units. The remaining 34 units will be located at different sites on the Tulalip Reservation. The housing is located near employment opportunities, and construction on the project will create jobs for tribal members.
The Tulalip Tribes will provide land, property management, social services, on-site health care, financial literacy programs, child-care and infrastructure, and rent subsidies for the next 15 years to the development.
KeyBank’s ability to focus on the needs of Native American clients is made possible through its Native American Financial Services segment, which consists of specialists who focus on Native American tribal governments and their business enterprises. Key also supports the Tulalip community through a retail branch in Quil Ceda Village on the Tulalip reservation.
“We are proud to partner with an institution like Raymond James that has such a strong knowledge of the complexities of Native American laws and communities and shares our dedication to helping Native Americans,” said Mike Lettig, KeyBank Native American Financial Services national executive. “KeyBank has long been involved in helping Native American communities to achieve financial success by recognizing the important role tribal customs, culture and laws play in business dealings.”
“Through the Low-Income Housing Tax Credit program, the Tulalip Tribes will be able to provide safe, decent and affordable homes for 66 families,” said James Horvick, vice president and director of acquisitions for Raymond James Tax Credit Funds, Inc. “This is a wonderful example of creative and ingenious financing.”
Currently, KeyBank provides capital and financial services to more than 60 Native American tribes and corporations, with a total credit commitment of approximately $1 billion. Of the 562 federally recognized tribes in the United States, 305 reside in KeyBank’s retail footprint.
Raymond James has a history of investing in Native American housing developments, partnering with 37 tribes over the last 10 years and investing more than $300 million in tribal Low-Income Housing Tax Credit transactions that have resulted in more than 2,800 homes being built or renovated.
A dedication ceremony is scheduled for December.
The Tulalip Reservation is in western Snohomish County, adjacent to the western border of the city of Marysville, and covers 22,567 acres of land. The tribes have approximately 4,500 members, with 2,600 members living on the reservation.