There is more change coming for 23rd and Union. The KeyBank building at the intersection is being acquired by nonprofit developer Capitol Hill Housing and will be redeveloped as “mixed-use and affordable housing,” according to the announcement sent out Wednesday afternoon and posted below.

The bank will continue to operate into April before operations are consolidated at other area branches, according to the announcement.

A bank has operated at the site for decades including the Liberty Bank, started in 1968 as a black-owned bank.

The plan for development comes as some of the more ambitious projects for 23rd and Union were iced by economic downturn. Residents and business owners in the area met in December to work together to help foster growth and safety at the intersection. The post office, a key component of the area, appears destined to remain at its location for the time being. Other, smaller investments have also helped keep the area active including the 2012 opening of Med Mix and the debut of The Neighbor Lady last spring. But investment also means change. The Neighbor Lady took over the space of longtime favorite Thompson’s Point of View after tax and business issues forced the restaurant’s closure.

Troubled by a series of violent incidents, the corner saw a fast turnaround in crime levels in recent years. Many credit SPD’s Drug Market Initiative in 2009 for playing a key role in the decline.

Though, along with crime activity, community activity of any kind hit a low period that lasted years. At one point in 2010, three of the the four corner properties were vacant.

The nonprofit Capitol Hill Housing develops and operates affordable apartment buildings across Capitol Hill and Seattle. Its most recent project — The Jefferson at 12th and Jefferson — opened this fall. The developer’s next big effort will be the 12th Ave Arts building on Capitol Hill that will transform the current East Precinct parking lot into an apartment and office building with a theater facility — and parking for SPD.

No timetable for development at 23rd and Union was included in the announcement but design and environmental review will need to come before any construction begins. We’ll try to more about timing and CHH’s plans for the property in the interim.