KeyBank Community Development Lending And Investment Launches Initial Opportunity Zone Fund
KeyBank Community Development Lending And Investment Launches Initial Opportunity Zone Fund KeyBank Opportunity Zone Fund I, Inc. launched to take advantage of new tax law |
[12-December-2018] |
CLEVELAND, Dec. 12, 2018 /PRNewswire/ -- KeyBank Community Development Lending and Investment (CDLI) today announced the launch of KeyBank Opportunity Zone Fund I, Inc. (the Fund). The investment strategy will focus on affordable housing and other community development projects within qualified opportunity zone tracts established through the Tax Cuts and Jobs Act of 2017. Managed by KeyBank CDLI's asset management group, the Fund will leverage KeyBank CDLI's core competencies, over multiple real estate cycles given the longer-term time horizon, to deliver a solid, risk-adjusted return profile. It will target property investments within qualified opportunity zones in KeyBank's market footprint. "As evidenced by our nine outstanding CRA ratings, Key has successfully leveraged its national affordable housing platform to assist local communities revitalize low- and moderate-income neighborhoods. We are excited that the opportunity zone framework provides an additional tool to help us further our efforts in the communities we serve," said Irena Edwards, senior vice president, KeyBank CDLI. The Fund has an investment of $50 million, which is projected to be invested prior to year-end. Created by the 2017 Tax Reform Law, the new legislation allows for favorable tax treatment of capital gains invested into development projects, provided that the gain is placed into a qualified Opportunity Fund. The Funds may only be invested in neighborhoods designated by federal and local lawmakers as "Opportunity Zones" based on a combination of U.S. Census Bureau income data and state and local input. In addition to deferring tax on invested capital gains, investors can reduce their tax owed over time and pay no additional capital gains on their Opportunity Zone Fund investment if it's held for over 10 years. About Key Community Development Lending and Investment About KeyCorp
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Company Codes: NYSE:KEY |
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