Investment advisor Greystone has formed a joint venture with affordable housing company Lappin Associates.
The joint venture will aim to deploy billions in capital for the financing, preservation and stabilization of affordable multifamily housing.
It will source long-term, low-rate Fannie Mae, Freddie Mac and HUD-insured loans that will enable owners of affordable multifamily projects to complete moderate renovations in order to prolong the life of their properties.
As the current pandemic worsens the environment for the creation and protection of affordable housing, Greystone and Lappin Associates are combining strengths “to provide a life raft” for affordable properties.
Greystone is the leading multifamily and healthcare provider of HUD-insured loans, a top provider of Fannie Mae and Freddie Mac affordable housing loans, and is the General Partner of America First Multifamily Investors, L.P. , which manages over $1 billion in assets consisting primarily of mortgage revenue bonds intended for multifamily affordable housing construction and permanent financing.
Along with Greystone’s experience in structuring finance solutions for the affordable sector, Lappin Associates is a leading on-the-ground development advisor. Lappin Associates is led by Michael Lappin, the former CEO of the Community Preservation Corporation. During his tenure at CPC he oversaw the preservation and development of almost 95,000 affordable units in NYC.
“The nation’s affordable housing stock – and particularly New York City’s – is in crisis, but there is a proven method for preserving properties both financially and physically with the help of government-backed loans and a strategic plan for long-term upgrades and efficiency,” said Stephen Rosenberg, CEO and founder of Greystone.
“We believe this joint venture brings together the strongest providers in the affordable housing sector to give new life to critical residential housing, and we are thrilled to make an impact for both private and non-profit owners and their many residents.”
According to Lappin, well over one and a half million low- and moderate-income New Yorkers live in private and non-profit owned rental housing. Much of this housing is old and needs critical upgrading. In the current crisis, almost all of this housing is stressed financially and needs a lifeline.
Lappin said, “Using techniques pioneered by CPC in the 70’s and 80’s that preserved tens of thousands of apartments, our work with Greystone will seek to provide a safety net for this housing.
“By leveraging today’s historically low interest rates, combined with help from the government and the private capital markets, this housing can remain physically and financially strong and provide affordable and healthy housing for this and the next generation. Our initiative with Greystone can set an example of how this can be done on a meaningful scale in New York and in other urban centers.”