The Community Preservation Corporation (CPC), a provider of capital for affordable housing in underserved housing markets, announced that the New York State Common Retirement Fund (CRF) has committed $200 million in new funding to invest in affordable housing and community revitalization projects across New York State.
The new allocation will finance approximately 3,500 units of housing over the next three years, and will serve to revitalize downtown areas, stabilize neighborhoods, and provide affordable housing throughout New York State.
The program is a critical tool for stabilizing neighborhoods and revitalizing communities in towns such as Poughkeepsie and Rochester, said the CPC in a statement.
It has also created housing for low- and moderate-income families and populations with special needs, such as homeless families, individuals with mental illness, and seniors.
“For nearly 23 years, the New York State Common Retirement Fund has been one of CPC’s most important partners in community revitalization and in the creation of affordable housing in New York State,” said Rafael E. Cestero, president and CEO, The Community Preservation Corporation.
“This innovative partnership has not only enabled thousands of families to have a safe, stable home, but also helped stabilize neighborhoods and spur community revitalization.
“Innovative financing programs like this one are needed now more than ever to spur growth in communities across the state.”
Comptroller Thomas P. DiNapoli added, “The partnership with The Community Preservation Corporation increases affordable housing options across the state, provides risk-adjusted returns, and helps ensure that the Fund remains one of the best-funded in the country.”
Since 1991, CPC has worked in partnership with CRF to provide 30-year fixed-rate permanent loans for low- and moderate-income multi-family developments.
To date, CPC has invested approximately $650 million to create over 16,300 units of housing in partnership with CRF.
CPC has a nearly 40-year history of providing loans for multi-family developments across New York, frequently undertaking complex loans that traditional banks do not.These loans are often smaller than what traditional banks can provide, addressing a critical and often unmet need in the market. CPC’s expertise with housing programs and CRF’s innovative financing tools have helped make complicated housing projects a reality and revitalize communities across New York.
“When I first started renovating vacant buildings in towns like Poughkeepsie, I struggled to get financing from traditional banks often due to the smaller loan amounts needed to finance these projects,” said Wulf Lueckerath., a developer who is rehabilitating a building currently in disrepair into eight affordable apartments and two commercial spaces on Main Street in Poughkeepsie. Funding through CRF will enable CPC to close on a $460,000 First Mortgage Permanent CRF loan with SONYMA insurance for Lueckerath.
“CPC has always recognized the importance and need for affordable housing, and their expertise combined with the Common Retirement Fund’s long term permanent financing have been critical to helping invest in the community and convert once dilapidated buildings into safe and stable housing.”