What Every Employer Should Know
Investing in Affordable Housing for New Yorkers
In 1991, the Common Retirement Fund developed a program to support the rehabilitation and development of affordable housing in New York State. Under the program, the Fund’s designated manager, the Community Preservation Corporation (CPC), originates affordable long-term housing mortgages across New York State. CPC provides the construction financing and when construction is completed, CPC sells the permanent loans to the Fund. All mortgages are 100 percent insured by The State of New York Mortgage Agency (SONYMA).
Through this program with CPC, the Fund has been able to provide moderate-income and low-income families across the State with the opportunity to rent affordable housing. By purchasing permanent mortgages, the Fund provides for the production of affordable new multifamily housing and the revitalization of deteriorated or obsolete housing units.
Since inception of this program, 16,921 units for over $665.5 million have been completed, and 1,738 are in the pipeline.
In fiscal year 2013–14, the Fund invested in affordable housing throughout the State, including Dutchess, Erie, Onondaga, Nassau, Orange and Westchester Counties. In March 2014 the Fund committed another $200 million to a similar program with CPC. The Fund remains dedicated to working with CPC and SONYMA to provide New York State residents with opportunities in affordable housing, so long as the investment structures and potential returns fulfill the fiduciary mandate of the overall pension fund to the beneficiaries and retirees.