US - Three of New York City's pension funds have allocated an additional US$20m to their public/private apartment rehabilitation programme (PPAR), which provides financing for multifamily rehabilitation and new construction in low and moderate income neighbourhoods.
New York City comptroller William C. Thompson signed the agreement adding Neighbourhood Housing Services (NHS) of New York City (NHS) to the programme.
Under PPAR, the Community Preservation Corporation (CPC), JPMorganChase, the Bank of America and now NHS, provide construction loans for affordable housing for which the systems commit to provide the “take-out” financing (long term permanent financing) at the start of the construction.
The US$20m target allocation consists of US$10m from the New York City Employees’ Retirement System and US$5m each from the New York City Police Pension Fund and the Teachers’ Retirement System of the city of New York.
The money will provide the “take-out” financing for NHS’ Small Building Partners Program, a multi-bank construction loan facility which makes rehabilitation loans to owners of 3 – 20 unit residential and mixed-use buildings.
“I am pleased to announce that we are increasing the allocation to the Public/Private Apartment Rehabilitation Program, thereby expanding our commitment to affordable housing in New York city,” Thompson said.
“NHS provides an invaluable service by supporting small building owners in neighbourhoods where it may be difficult or impossible to obtain financing from traditional lending institutions. By supporting the revitalisation of low and moderate income small-home neighbourhoods… the pension funds are investing in New York city to help create a better and stronger city.”
The latest allocation brings the total allocation by the funds to PPAR to US$956m.
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