Mayor Bill de Blasio announcing the new partnership at a press conference on July 30, 2014. Image credit: NYC.gov
Partnership announced to establish a $350 million fund to support affordable housing throughout the City. On July 30, 2014, Mayor Bill de Blasio and Comptroller Scott M. Stringer announced a partnership to establish a $350 million fund to support affordable housing throughout New York City. The new financing was raised through the support of Citi, the New York City Retirement Systems, the New York City Housing Development Corporation, Wells Fargo, Morgan Stanley and other financial institutions including Deutsche Bank and Bank of America.
In Mayor de Blasio’s Housing New York plan, the City set a ten-year plan to create and preserve 200,000 units of affordable housing. The new funding will allow the Community Preservation Corporation to provide lending capital to housing developers for the acquisition, construction, rehabilitation and preservation of affordable housing across New York City and State. The investment will assist in the creation and preservation of an estimated 7,500 units of affordable housing statewide.
The five New York City Retirement Systems consists of the Teachers’ Retirement System 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. New York City Comptroller Scott M. Stringer announced, “The five New York City Retirement Systems have agreed to invest $40 million towards CPC’s affordable housing, construction loan program.” Alan Wiener, Group Head, Wells Fargo Multifamily Capital announced that Wells Fargo made a “$50 million 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.”
Mayor Bill de Blasio stated, “We have set out the most ambition affordable housing plan of any city in the nation, and today we can say that’s a goal both the public and private sector are putting their muscle behind.” Rafael E. Cestero, President and CEO of CPC, explained that “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.”
By: Jonathan Manfre (Jonathan is a CityLaw Summer Associate and a Student at New York Law School, Class of 2015).