First Federal of Lakewood is making its first investment in affordable housing. The community bank's investment will help pay for projects including apartments in Cleveland and Shaker Heights.
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First Federal of Lakewood is making its first investment with the Ohio Capital Corporation for Housing, a nonprofit group.The community bank said Wednesday that it will contribute $3 million over 11 years to a multi-bank fund administered by the Ohio Capital Corporation for Housing, a nonprofit group. This is the first such investment for First Federal, which is buying affordable-housing tax credits to offset what it owes in taxes.
"We're able to do this because we are one of the banks that are making a profit today," said Rick Smith, the bank's chief financial officer.
Developers who build apartments for low-income families, the elderly, homeless people and disabled residents rely on tax credits and other subsidies to make low monthly rents possible. The Ohio Housing Finance Agency and other housing groups award tax credits to developers, who can sell the credits to help finance their projects.
Portions of First Federal's investment are coming back to Cleveland and Shaker Heights. The money will help Cleveland Housing Network and the YWCA of Cleveland finish Independence Place, 22 apartments for women who have not found new homes after turning 18 and becoming too old for the Cuyahoga County foster-care system. The apartments, in the YWCA's headquarters building on Prospect Avenue, are scheduled to open in early 2011.
The investment also will assist Library Court Senior Housing, 44 apartments for the elderly in Shaker Heights. Construction is scheduled to start within 30 days and could be finished in fall 2011. Pirhl, a senior-housing developer based in Warrensville Heights, is building the apartments north of Chagrin Boulevard and Chelton Road, near the Shaker Heights Public Library.
