Streams

Affordable Housing Stock on the Rise with Large Investment

Wednesday, July 30, 2014

Mayor Bill de Blasio announced a partnership Wednesday with some of New York City's biggest financial institutions to build and preserve affordable housing. He said the city will kick start the $350 million fund with $ 60 million dollars — $40 million of which will come from the city's pension funds. He says interest from that loan will go back to the fund.

"Today is a great example of an initiative that fits the obligation to think in terms of the health of our pension funds and the future needs of our retirees, while simultaneously having a real big impact on our city today," the mayor said.

The city's Community Preservation Corporation — an affordable housing financier — will use the investment to provide loans to affordable housing developers, and the interest from these loans will go back to the investors.

Several of the city's pension funds and top financial institutions are financing the initiative. Citigroup contributed $75 million dollars and Wells Fargo added $50 million. Other partners include Deutsche Bank, Morgan Stanley and Bank of America. 

The fund is expected to create at least 7,500 new affordable units.

Tags:

More in:

Comments [2]

cobblehillite from Brooklyn

Part of the NYC money for this initiative comes from the NYC pension fund. Comptroller Stringer said that the return on investment to the fund will come from the interest payments on the loan. the return on investment will be an estimated 2.75%. i think this is a foolish investment of people's money (including tax payers who contribute to the NYC pension fund). if someone asked you to invest in a real estate project that would yield a 2.75% return, would YOU do it. I would not. the city should not be using pension fund money if it doesnt meet the needs of the investors who do not have a say in this investment. the mayor should use city money NOT pension fund money to fund this if he feels it is an important policy.

Jul. 31 2014 07:18 PM
Sutton resident from Sutton Resident/Harlem

Please note the photo is old. There is scaffolding all around the Sutton due to the fact a brick fell from the building and we have had some other construction defects which are developer is ignoring. Harlem elected officials are a failure when it comes to all the construction defects of new building and buildings built by HPD. These new buildings need to take out loans to make the repairs made by NO oversight by the buildings dept. and HPD. The joke is that Council Member Robert Jackson's office ignored this issue and now he has the nerve to run for Senate. Inez Dickens office doesn't answer emails or phone calls and at the end of the street you won't get any help from Assembly Member Farrell. So the consumer ends up being screwed and it's all bait and switch.

Jul. 31 2014 01:17 PM

Leave a Comment

Email addresses are required but never displayed.

Get the WNYC Morning Brief in your inbox.
We'll send you our top 5 stories every day, plus breaking news and weather.

Sponsored

Latest Newscast

 

 

Support

WNYC is supported by the Charles H. Revson Foundation: Because a great city needs an informed and engaged public

Feeds

Supported by