Mayor Bill de Blasio and Comptroller Scott M. Stringer today announced a
partnership to establish a $350 million fund to support affordable
housing throughout New York City, marking a major investment in the
administration’s historic plan to create and preserve 200,000 units of
affordable housing.
This new funding will allow the Community Preservation Corporation
(CPC), a leading not-for-profit affordable housing and neighborhood
revitalization lender, to provide lending capital to housing developers
for the acquisition, construction, rehabilitation and preservation of
affordable housing across New York City and State. Leveraging more
private financing to increase the supply of affordable housing is a
pillar of the administration’s Housing
New York plan, and the investment announced today will foster the
creation and preservation of an estimated 7,500 units of affordable
housing statewide.
This capital was raised through the support of Citi, the New York City
Retirement Systems (consisting of the Teachers’ Retirement System of the
City of New York, New York City Employees’ Retirement System, New York
City Police Pension Fund, New York City Fire Department Pension Fund,
and the New York City Board of Education Retirement System—collectively
NYCRS), the New York City Housing Development Corporation (HDC), Wells
Fargo, Morgan Stanley and other financial institutions, and marks a
major renewal for CPC, allowing it to provide much-needed financing to
create and preserve affordable, multi-family housing in New York.
Additional participants in the facility include Deutsche Bank and Bank
of America, among others.
“This financing will mean more shovels in the ground and more New
Yorkers protected from soaring rents. We have set out the most ambitious
affordable housing plan of any city in the nation, and today we can say
that’s a goal both the public and the private sector are putting their
muscle behind,” said Mayor Bill de Blasio. “We’re in the
midst of an affordability crisis that demands everyone work together as
never before, and we are incredibly proud to be working with the
Comptroller, CPC and major financial institutions like Citi, who are
putting real skin in the game to spur affordable housing across the
city.”
“I am pleased today to be able to announce the five New York City
Retirement Systems have agreed to invest $40 million towards CPC’s
affordable housing, construction loan program,” said New York
City Comptroller Scott M. Stringer. “For the last three decades, the
NYCRS have had a policy of investing in Economically Targeted
Investments, which benefit low-, middle- and moderate-income New
Yorkers. CPC’s new fund is expected to create at least 7,500 new
affordable units, and will allow CPC to continue the valuable work they
have engaged in since 1974. Most importantly, this is not only an
investment that is good for our residents, but also one that is good for
the City’s pension funds. I would like to thank Mayor de Blasio, CPC,
and Citi for working with our office to advance this important
investment.”
“This new capital is a testament to the fact that CPC is stronger than
ever and stands ready to work with private owners and our partners as a
source of consistent and flexible capital for the creation and
preservation of essential affordable, multi-family housing throughout
New York City and State,” said Rafael E. Cestero, President and
CEO, The Community Preservation Corporation. “Thanks to Mayor de
Blasio, Comptroller Stringer, Citi, and all of the other financial
institutions who participated in this facility for their commitment to
quality housing for New Yorkers.”
“New York has been Citi’s home for more than 200 years, and we have made
it a priority to support the City’s growth and development throughout
that time,” said Citi CEO Michael Corbat. “Citi is a leading
financier for affordable housing, and we are proud to partner with Mayor
de Blasio, Comptroller Scott Stringer, and CPC in this effort to
strengthen neighborhoods and enhance economic opportunity for all New
Yorkers.”
The new capital will be used to finance developments like 170 Ogden,
L.P., which consists of three extensively renovated multi-family
buildings containing 65 units in the Highbridge section of the Bronx.
CPC provided a $7.8 million construction loan and a $1.7 million
permanent loan through the New York City Retirement Systems to the
Highbridge Community Development Corporation (HCDC) for necessary
renovations in the building, including new mechanical systems, kitchens
and baths. The three buildings will have 17 one-bedroom, 44 two-bedroom,
and three three-bedroom units, with one unit set aside for a super.
“CPC’s importance to the affordable housing sector is enormous,” said HPD
Commissioner Vicki Been. “The fact that so many partners joined
together to create this revolving fund demonstrates that CPC is seen as
a lynchpin in communities around the city, and proves that they have
earned our renewed faith in their fiscal strength as an organization.
HDC led the way in spurring this reinvestment by leveraging its
resources to keep the momentum going. Our commitment to strong partners
like CPC is testament to how much this administration cares about and
values its affordable housing stock.”
“For decades, CPC has been a central fixture and major force in New York
City’s affordable housing landscape, and has always been a strong
partner to HDC and the City of New York,” said HDC President
Gary Rodney. “HDC has earned its reputation as a strategic, creative
financial partner in affordable housing, and we are proud to have been
an early participant in the establishment of this revolving credit
facility. We are grateful for the leadership and financial commitment
that Citi, the Comptroller, and all the lenders have in CPC and in the
creation of affordable housing here in New York. We are all thrilled to
be in a position to help CPC continue to create and preserve affordable
housing in our city’s neediest neighborhoods.”
“A stable housing base is critical for communities to thrive. Over the
past four decades, CPC has made affordable housing a reality for
countless individuals and families in some of the city’s most
underserved neighborhoods, and this partnership will significantly
expand on those efforts,” said Jeff Barker, Bank of America New
York City president.
“Wells Fargo is proud to have made a $50MM initial commitment to
reinvigorate CPC’s lending activity, which supports the Mayor’s
ambitious Housing New York plan and meets a critical need for capital to
build and preserve low and middle income homes throughout New York
State,” said Alan Wiener, Group Head, Wells Fargo Multifamily
Capital. “Supporting organizations like CPC and affordable housing
leaders like Rafael Cestero complements Wells’ ongoing partnerships and
major investments in debt, enhancement and tax credit equity to help
meet New York’s unmet need for affordable housing.”
“As a leading investor in the Community Preservation Corporation since
its inception in 1974, Deutsche Bank is pleased to be able to grow its
support of CPC and further its mission of providing capital for the
development and preservation of affordable housing in New York City. CPC
will play an essential role in efficiently aggregating private capital
and aligning it with public resources to advance Mayor de Blasio’s
ambitious but critically important 200,000 unit Housing New York plan,”
said Gary Hattem, Managing Director, Community Development
Finance Group, Deutsche Bank.
Copyright Business Wire 2014