Economically Targeted Investments

In an effort to generate affordable housing and promote economic development within the five boroughs of New York City, the Comptroller’s Office continues to expand the pension funds’ commitments to Economically Targeted Investments, or “ETIs”.
The funds’ ETIs seek to benefit the pensioners by providing solid, market-rate returns to the funds while at the same time making investments that benefit New York City.  These investments provide capital in areas that are inadequately served by the market. ETIs aim to improve and create low-, moderate- and middle-income housing, to revitalize neighborhoods by returning distressed properties to the tax rolls, to produce new housing that is affordable to working people in NYC and to create jobs.  Many of the ETI investments in housing create construction and small business employment.  As of December 31, 2007 the five-year overall return on the pension funds’ targeted investments was 5.64% and the ten-year overall return was 6.76% (as compared to its benchmark, the Lehman US Aggregate Bond Index, with a five-year return of 4.43% and a ten-year return of 5.97%).

Current ETI investments include:

The Public Private Apartment Rehabilitation Program (PPAR).
This investment program finances multifamily buildings in the five boroughs.  Working with 8 private and not-for-profit lenders, the funds issue forward commitments to provide permanent, long-term mortgages for the rehabilitation or new construction of multifamily buildings that will remain affordable for the long term.  Since 2002 and through December 31, 2007, $397 million has been invested and/or committed for 9,931 units of affordable rental housing. 

The Community Preservation Corporation (CPC) Revolving Credit Agreement for New York
Investors since 2003, the pension funds have increased their commitments to CPC’s Revolving Credit Agreement to $75 million and currently participate alongside 68 additional investors.  This credit facility funds short-term construction loans for affordable housing, mixed-use development and commercial properties in low-, moderate- and middle-income areas.  As of December 31, 2007, the facility was actively financing 328 construction projects in New York City for a total of $260 million, representing 8,029 units of housing and over 100 commercial units.

The AFL-CIO Housing Investment Trust (HIT)
The funds began investing in the HIT in 2002 and as of December 31, 2007 have a total of $283 million invested.   The funds invest in the HIT, a national fund, because HIT has made a deep commitment to invest in New York City.  Since 2002, HIT has invested over $1.2 billion in multifamily and single family housing in New York City.

An open-ended Request for Proposals (RFP) for Economically Targeted Investments is currently available on the RFP page of the Comptroller's web site.

ETI staff may consider investments in other asset classes.  For more information, contact the Director of ETIs,Kathy Martino Kathy.Martino@comptroller.nyc.gov.

See photographs of many of the successes that public/private partnerships  have had in revitalizing buildings and neighborhoods