New financing will contribute to de Blasio administration's affordable housing plan
August 1, 2014
NEW YORK—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 profitaffordable 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 building 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.”
About Red Stone Equity Partners
Red Stone Equity Partners, LLC is a leading real estate investment firm specializing in the syndication of Low-Income Housing Tax Credits to facilitate affordable housing development. Red Stone builds upon long-lasting relationships with investors and developers as it acquires, structures, and provides long-term asset management services to its institutional clients. Its senior management represents more than 75 years of tax credit equity syndication experience, involving the acquisition and syndication of approximately $10 billion of tax credit equity. Red Stone Equity Partners is headquartered in Cleveland, OH, with regional offices in Charlotte, Chicago, Columbus, Los Angeles, and New York.