The latest phase in a 40-acre redevelopment project in Hartford will move forward thanks to $26.7 million in construction financing and Low Income Housing Tax Credit equity from KeyBank’s community development lending and investment division.

Affordable and market-rate multifamily developer Pennrose has partnered with Hartford-based The Cloud Co. and the Hartford Housing Authority on Westbrook Village Phase II, the second of a multi-phase initiative to redevelop 40 acres of a former state public housing site, consists of the acquisition and construction of six multifamily buildings offering 60 mixed-income rental units. Of the 60 units, 45 will be affordable, and 15 will be market rate.

“The redevelopment of the Westbrook Village site will radically transform this area of Hartford,” Charlie Adams, Penrose regional vice president, said in a statement. “It would not be possible without the financial support from KeyBank and our other financing partners, including the Connecticut Housing Finance Authority (CHFA) and the Connecticut Department of Housing.”

In addition to the $14 million CDLI construction loan and $12.7 million of LIHTC equity from KeyBank, financing for the 9 percent LIHTC project includes a $5.5 million CHFA Department of Housing loan and two Boston Private Bank & Trust and Federal Home Loan Bank loans totaling $3 million. Tax credit allocation was provided by CHFA.

Eric Steinberg of Key’s CDLI team and Victoria O’Brien of Key Community Development Corporation structured the financing.