A 155-unit development for very low-income residents, including formerly homeless individuals, in Schenectady, N.Y., is receiving $15 million in low-income housing tax credit (LIHTC) equity from KeyBank.

The bank also announced that is providing a $9 million construction loan.

The new development will replace housing for low-income and homeless individuals at the 13 State Street YMCA that the Capital District YMCA currently manages. The development is under construction by the Galesi Group and is expected to open next spring.

The renovation of the 96,060 square-foot, four-story historic industrial building will create housing for very low-income tenants. Of the 155 units, 30 units will be reserved for individuals struggling with homelessness or substance abuse, 57 units will be offered to the developmentally disabled and mentally ill, 41 units will be allocated to those receiving project-based Sec. 8 subsidies, and 10 units will be offered to those who receive a rental subsidy from the Schenectady Department of Social Services, whose offices are located adjacent to the development.  The remaining 17 units are for those who income-qualify at 30 percent or less of area median income.

“This development represents an opportunity to repurpose a blighted vacant property into quality affordable apartments while also restoring an important historical building,” said James Poznik, national lending and investing manager with Key Community Development Banking. “Additionally, it is a way for KeyBank to fulfill its commitment to enhancing communities through better housing options for groups who need them the most.”