Newswise — KeyBank and ProMedica, a not-for-profit healthcare network based in Toledo, Ohio, today announced the joint commitment of $2.65 million to drive economic development in central Toledo-area neighborhoods through revitalized local housing and the reduction of blight. Working with the Local Initiative Support Corporation (LISC), the corporations will work to upgrade affordable rental properties while at the same time making it easier for first-time homebuyers to establish roots in communities adjacent to downtown Toledo.
“Key has long invested in the growth of the central Toledo community and today’s major gift from the Key Foundation not only continues that tradition, but elevates it to another level,” said Jim Hoffman, KeyBank market president. “We know that a critical part of any community is stable affordable housing. Individuals earning below the area median income benefit from programs and services that help lower their monthly rent and provide secure, stable housing. With this groundbreaking investment, we are furthering our commitment to helping central Toledo families reach their full potential, driving economic development and helping neighborhoods thrive.”
The new collaboration reinforces the efforts of the city’s YR 16 task force—focused on preserving 700 units of rental housing that have aged out of federal financing programs and attracting a diversified economic base of nearby homeowners. That not only makes Toledo communities stronger, but also recognizes the clear connection between better housing and better health, and the long-term implications for all of Toledo’s residents, according to Randy Oostra, ProMedica president and CEO.
“There is a growing focus in the healthcare industry on the connection between substandard housing and an increased risk of chronic health conditions. We’re seeing more research that points to it being a major public health issue,” Oostra explained. “For years, ProMedica has been purposefully focused on social issues that impact health and well-being and we are pleased to be working with KeyBank, the City of Toledo, LISC and other area organizations to collectively improve area health outcomes.
The new effort also recognizes a growing economic imperative in Toledo where 25 percent of renters spend more than half of their income on housing. This leaves less of their earnings for basic necessities such as food, clothing, healthcare and transportation. Accordingly, this creates a ripple effect on nearby businesses and schools, affecting everything from crime to property values.
Kim Cutcher, executive director of LISC’s Toledo program, also pointed to the impact of leverage from this investment. “When we strengthen the economic base of local residents, we can attract other investment to these neighborhoods. Entrepreneurs are more likely to open businesses. People can shop in their own community. It helps rev up the local economy and people live better, longer and healthier.”
Cutcher pointed to the importance of the YR 16 task force in advancing that strategy. In addition to LISC, the task force includes the City of Toledo Department of Neighborhoods, NeighborWorks Toledo Region, Ohio Housing Finance Agency, the Lucas County Land Bank, the National Equity Fund and the Ohio Capital Corporation for Housing. The project will leverage an additional $5 Million from the City of Toledo, LISC, the Lucas County Land Bank and NeighborWorks Toledo Region.
Through this collaboration, 200 area residents will become homeowners over a three-year period. ProMedica, KeyBank, LISC and NeighborWorks will provide funding for this initiative that will go toward home loans and assisting residents with making upgrades to their homes.
ProMedica is a mission-based, not-for-profit healthcare organization serving northwest Ohio and southeast Michigan. The 12-hospital system has more than 15,000 employees, nearly 2,100 physicians and advanced practice providers with privileges, and more than 800 healthcare providers employed by ProMedica Physicians. Additionally it offers a health plan, Paramount, which serves 331,000 members including more than 230,000 members in the statewide Medicaid plan. Driven by its Mission to improve your health and well-being, ProMedica offers a full range of diagnostic, medical and surgical specialties in areas such as emergency medicine and trauma, behavioral health, heart and vascular, oncology, orthopaedics, neurology, and women’s and children’s services. The health system has been nationally recognized for its advocacy programs and efforts to raise awareness about hunger as a health issue. For more information about ProMedica, please visit www.promedica.org/aboutus.
KeyCorp’s roots trace back 190 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $136.5 billion at December 31, 2016. Key provides deposit, lending, cash management, insurance, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of more than 1,200 branches and more than 1,500 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBank Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.
LISC equips struggling communities with the capital, program strategy and know-how to become places where people can thrive. It combines corporate, government and philanthropic resources. Since 1980, LISC has invested $17.3 billion to build or rehab 366,000 affordable homes and apartments and develop 61 million square feet of retail, community and educational space. In Toledo, LISC has focused on a comprehensive approach to community development, investing $126 million to fuel economic opportunity and build stronger, healthier neighborhoods. For more, visit www.lisc.org.