New York City Mayor Eric Adams, Comptroller Brad Lander, Public Advocate Jumaane Williams, and other officials announced a $60 million investment by the New York City Employees’ Retirement System (NYCERS) to preserve 35,000 rent-stabilized housing units affected by the collapse of Signature Bank. The investment, in partnership with Community Preservation Corporation, Related Fund Management, and Neighborhood Restore, aims to stabilize affordable housing while providing competitive returns for NYC retirees.
New York City Employees Retirement System’s $60 Million Investment Advances Affordable Housing Stabilization and Delivers for New York City Retirees. Following Collapse of Signature Bank, City Supported Joint Venture Between Related Companies, Community Preservation Corporation, and Neighborhood Restore to Purchase Loan Portfolio Dedicated to Affordable Housing
— New York City Mayor Eric Adams, New York City Comptroller Brad Lander, New York City Public Advocate Jumaane Williams, and trustees of the New York City Employees’ Retirement System (NYCERS) today announced an investment of up to $60 million to preserve rent-stabilized housing units impacted by the sudden collapse of Signature Bank last spring. The investment was made in Community Stabilization Partners — a joint venture led by Community Preservation Corporation with Related Fund Management and Neighborhood Restore HDFC — leading affordable housing providers in New York City. The investment represents the largest single investment by NYCERS in preserving New York City’s rent stabilization stock and will both advance the stabilization of much-needed affordable housing and deliver competitive returns for retirees.
“Today, we are proud to announce a $60 million investment from our NYCERS pension fund that will go toward preserving 35,000 units of affordable housing,” said Mayor Adams. “This housing is critical to making our city more affordable and livable for working-class New Yorkers, and I want to thank everyone who came together to make sure we got this deal done, including Community Preservation Corporation, Related Fund Management, Neighborhood Housing Restore, our trustees, and our partners in labor. When we came into office two years ago, we had a mission: protect public safety, rebuild the economy, and make this city more livable for hardworking New Yorkers and this investment is a step toward all three of those goals.”
“Today’s announcement is a shining example of creative and prudent investments we can make to preserve existing housing that we simply cannot afford to lose,” said Comptroller Lander. “Expanding and protecting our affordable housing supply through sound investment decisions is a major priority of my office, in partnership with NYCERS trustees. I am grateful to my fellow trustees for their work to secure this opportunity and thrilled to collaborate with Community Preservation Corporation, Related Fund Management, and Neighborhood Restore who have decades-long experience ensuring that New Yorkers have an opportunity to afford to live in the city they love. I also want to praise the diligent work of the FDIC, HCR, HPD, and advocates, including ANHD and UNHP, who sounded the alarm on Signature’s lending practices and worked tireless to organize tenants within these buildings. Preserving the nearly 35,000 rental units in the Signature portfolio — which could have faced grave risks as a result of the bank’s collapse — is an enormous team effort, and we are proud to be part of it.”
“We should be using every tool available to address the housing and homelessness crisis, and this investment is a strong safeguard against the unsteady practices of some financial institutions and housing stock that is falling apart,” said Public Advocate Williams. “Any serious affordable housing plan has to heavily invest in preservation, and together with my trustee designee, I’ve been proud to support this investment in both the tenants and retirees of New York City. I thank all of the partners involved in advancing this historic investment, which will help provide both financial security and housing stability for New Yorkers.”
“This NYCERS investment in affordable housing shows how we can deploy investments to continue making New York an accessible place to live while protecting the hard-earned pensions of our city workers,” said First Deputy Mayor Sheena Wright. “The continued partnership between the mayor, the trustees of the pensions systems, the comptroller, and the private sector demonstrates how the City of New York can collaborate to implement a working people’s agenda.”
“I’m thrilled to see NYCERS’ $60 million investment in Community Stabilization Partners, a joint venture with some of the most experienced affordable housing providers in New York City,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “This Economically Targeted Investment not only infuses a new source of capital into preserving a critical source of housing for thousands of New Yorkers, but it will also deliver for retirees over time. I commend the comptroller and other NYCERS trustees for joining our administration in demonstrating what is possible through sound local investments like this.”
“It’s a great day when the future of 35,000 affordable homes in New York City is secured,” said New York City Housing Preservation Development Commissioner Adolfo Carrión Jr. “Today’s $60 million commitment reflects an unwavering dedication to preservation of New York’s housing stock. In the wake of the Signature Bank collapse, the collaborative effort between NYCERS, Related Companies, Community Preservation Corporation, and Neighborhood Restore emerged as a source of housing resilience and dedication to a stable, equitable, affordable future for all New Yorkers.”
When Signature Bank collapsed in March 2023, the Federal Deposit Insurance Corporation (FDIC) was appointed receiver for its portfolio of real estate loans, which included a substantial concentration of rent-stabilized housing in New York City. In December 2023, as part of an RFP process managed by the FDIC, Community Preservation Corporation, Related Fund Management, and Neighborhood Restore partnered to create a new venture, Community Stabilization Partners, which purchased a 5 percent equity interest in Signature Bank’s rent-stabilized loan portfolio, with the remaining 95 percent held by the FDIC. The portfolio totals approximately 1,140 buildings and 35,000 units with over 80 percent rent regulated and representing approximately 3 percent of New York City’s entire rent regulated housing stock.
Through the $60 million investment — which NYCERS voted on in March 2024 — NYCERS has become a 25 percent partner in Community Stabilization Partners. NYCERS is partnering with Related Fund Management, Community Preservation Corporation, and Neighborhood Restore due to their extensive expertise and deep roots in preserving and expanding affordable housing. Community Preservation Corporation has been a decades-long partner of NYCERS in their efforts to secure strong returns for pension members and beneficiaries, while investing in expanding the city’s affordable housing supply.
This investment is part of the Economically Targeted Investment program of the five New York City Retirement Systems, managed by the New York City Comptroller Office’s Bureau of Asset Management, and is aimed at achieving strong returns for members and beneficiaries while helping to preserve some of the city’s stock of rent regulated housing. Including today’s investment, NYCERS has invested nearly $700 million in rental apartments in the city, with 19 real estate fund managers.
“We are excited to have NYCERS participate in the Community Stabilizations Partners initiative,” said Salvatore D’Avola, executive director, Neighborhood Restore. “This significant investment will greatly enhance our ability to preserve this vulnerable rent regulated housing in New York City.”
“Our city is in the midst of a housing crisis, which is why it’s critical we work together to preserve, protect, and expand affordable housing,” said Queens Borough President Donovan Richards, Jr. “I’m grateful to all our fellow trustees for uniting and making this investment to preserve thousands of rent-stabilized housing units to help keep a roof over our people’s heads. Our families deserve to live with dignity.”
“We are thankful that city officials are taking action to address the severe financial distress facing rent-stabilized housing,” said Jay Martin, executive director, Community Housing Improvement Program. “We are at a moment of crisis for deeply affordable rent-stabilized housing, and we need creative solutions to lower costs and increase investment in aging buildings. We hope that we can build on this proposal and enact more reforms and programs to make sure rent-stabilized housing is protected for future generations.”
“It’s great to have NYCERS’ investment in this collaboration to preserve and improve this important portfolio of multi-family housing spread around the City of New York,” said Jim Buckley, executive director, United Neighborhood Housing Program.
“For four decades, the NYCERS and CPC relationship has played a critical role in financing the construction and rehabilitation of high quality, affordable multifamily housing for New Yorkers across all five boroughs,” said Rafael E. Cestero, CEO, The Community Preservation Corporation. “We are proud to welcome this important investment by the Comptroller and NYCERS alongside our partner Related Fund Management, which will help preserve the long-term stability of this critical piece of New York City’s affordable housing stock. We understand the unique role that this portfolio of rent regulated housing plays in our neighborhoods, along with the distinct financial challenges it faces, and we are dedicated to working with all of our partners to ensure that it remains a haven of affordability. My thanks to Comptroller Lander for his work to make our neighborhoods more affordable and equitable, to the FDIC and our partners in CSP, and to the city and state for their commitment to securing the future of these properties.”
“We cannot allow bad actors or bad business to put New York City’s precise affordable housing stock in jeopardy,” said Barika Williams, executive director, Association for Neighborhood and Housing Development. “ANHD applauds the New York City comptroller’s investment to stabilize over 30,000 rent-regulated housing units formerly held by Signature Bank. We look forward to continuing to partner with the New York City comptroller, the Community Stabilization Partners, and the FDIC to ensure the preservation of New York City’s affordable housing and that our tenants live in safe and healthy conditions.”
Trustees of the New York City Employees’ Retirement System are:
- Mayor’s Office of Pension and Investments Director Bryan Berge (Mayor Adams’ appointee);
- Comptroller Lander;
- Public Advocate Williams;
- Borough Presidents: Vanessa L. Gibson (Bronx), Antonio Reynoso (Brooklyn), Mark Levine (Manhattan), Donovan Richards Jr. (Queens), and Vito Fossella (Staten Island);
- Henry Garrido, executive director, District Council 37, AFSCME;
- Richard Davis, president, Transport Workers Union Local 100; and
- Gregory Floyd, president, International Brotherhood of Teamsters, Local 237.
About The Community Preservation Corporation
Community Preservation Corporation is a nonprofit, multifamily finance company that was founded in 1974 to provide financial and technical resources to stabilize and revitalize underserved communities. Today, Community Preservation Corporation uses its unique expertise in housing finance and public policy to expand access to affordable and workforce housing, advance diversity and equity in the development industry, and address the effects of climate change through the financing of sustainable housing. Since its founding, Community Preservation Corporation has invested over $14.8 billion to finance the creation and preservation of more than 225,000 units of housing. The company provides a suite of construction and permanent lending products and is an equity investor with approximately 4,200 affordable units under ownership. Community Preservation Corporation is a carbon-neutral company and maintains AA- Standard & Poor’s rating.
About Neighborhood Restore HDFC
Neighborhood Restore Housing Development Fund Corporation and its affiliate not-for-profit entities collaborate with city, state, and federal housing agencies on programs that seek to foster neighborhood stabilization by efficiently transitioning properties from physical and financial abandonment to responsible third-party ownership. Since its formation in 1999, Neighborhood Restore has successfully implemented affordable housing development and preservation programs throughout New York City while maintaining strong relationships with government, lenders, and community partners. Over time, it has emerged as an incubator for housing development programs focused on transforming distressed properties into affordable community assets.
About Related Fund Management
Founded in 2009, Related Fund Management is a real estate investment manager, with approximately $12 billion of assets under management. Related Fund Management and its affiliates have a long history in affordable housing preservation.
May 21, 2024 Manhattan New York
Sources: Midtown Tribune news – NYC.com
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