U.S. Bank’s Community Lending Division originated more than $1 billion in new loans last year, helping to finance much-needed affordable housing in communities all across the country.
Part of its national Commercial Real Estate group, U.S. Bank Community Lending provides financing to developers for the construction, rehabilitation and acquisition of rental housing for low- and moderate income individuals and families. In 2013, the group originated nearly $1.1 billion in loans, up from $950 million the previous year.
“Over the past several years, U.S. Bank has built a reputation as a consistent and quality lender in the affordable housing space,” said Kyle Hansen executive vice president of U.S. Bank’s Community Lending Division. “Hitting $1 billion in new loans in a single year is not only a milestone for us, but a sign of the continued need for affordable housing in the United States.”
According to a January 2014 report from the Urban Land Institute (ULI) and Enterprise Community Partners, the number of extremely low-income renters jumped to 12.1 million in 2011 from 9.6 million in 2007. Despite that trend, the supply of affordable rental housing did not keep pace. In 2011, according to the report, there were just 6.8 million housing units affordable to extremely low income renters, a shortfall of 5.3 million units.
“At U.S. Bank, we want to do our part to help close this gap,” Hansen said. “By combining our real estate expertise with this commitment to affordable rental housing, we are helping to address this need one affordable housing development at a time.”
Key projects financed by U.S. Bank in 2013 include**:
- Pillsbury A-Mill in Minneapolis – Development of a historic four mill into 251 units of affordable rental housing tailored toward local artists. Built in 1881 and closed in 2003, Pillsbury A is a U.S. National Historic Landmark and just two years ago was named one of the nation’s 11 most endangered buildings by the National Trust for Historic Preservation.
- North and Pulaski in Chicago – A 72-unit senior housing apartment building to be constructed on a long-vacant parcel of land in the Humboldt Park neighborhood of Chicago.
- Mercer Commons in Cincinnati – Construction and renovation of 19 buildings and 26 vacant parcels of land on 2.6 acres of downtown real estate in the historic Over-the-Rhine neighborhood of Cincinnati. The project will bring 126 apartments (30 of which will be affordable units), 28 condominiums, 17,600 square feet of commercial space, a 340-space parking garage, and usable green space to the community once fully complete.
- InnovAge Senior Housing-Thornton – A 72-unit senior housing apartment building slated to be built in Thornton, approximately eight miles north of Denver. Development of the project is currently underway. The property will open by June 2014.
- El Monte Veterans Housing – An affordable housing development aimed at supporting returning veterans in Los Angeles County who might otherwise be homeless. El Monte Veterans Housing is located 20 miles east of downtown Los Angeles, and will offer 40 permanent supportive housing units for formerly homeless veterans. Los Angeles County has the highest population of homeless veterans in the United States, with more than 8,000 in need of supportive housing.
**Several of the projects listed above also include equity financing from U.S. Bancorp Community Development Corporation.
About U.S. Bank
U.S. Bancorp (USB), with $364 billion in assets as of Dec. 31, 2013, is the parent company of U.S. Bank, the 5th largest commercial bank in the United States. The company operates 3,081 banking offices in 25 states and 4,906 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.
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