$20 million to be invested in Low- and Moderate-Income

Small-Home Neighborhoods

New York City Comptroller William C. Thompson, Jr., on behalf of three of the City’s Pension Funds, has signed an agreement adding Neighborhood Housing Services of New York City, Inc. (NHS) to the Funds’ Public/Private Apartment Rehabilitation Program and increasing the total allocation to the program by $20 million.

The Public/Private Apartment Rehabilitation Program (PPAR) provides financing for multifamily rehabilitation and new construction in low- and moderate-income neighborhoods. Under this program, 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 target allocation of $20 million consists of $10 million from the New York City Employees’ Retirement System (NYCERS) and $5 million each from the New York City Police Pension Fund, Subchapter Two, and the Teachers’ Retirement System of the City of New York (TRS). The $20 million 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. These buildings are usually located in the small-home neighborhoods targeted by NHS, helping to revitalize these neighborhoods by creating and rehabilitating retail spaces and housing units. NHS’ target allocation brings the total allocation to PPAR to $956 million.

“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 neighborhoods where it may be difficult or impossible to obtain financing from traditional lending institutions. By supporting the revitalization of low- and moderate-income small-home neighborhoods, such as Bedford-Stuyvesant and Mott Haven, the pension funds are investing in New York City to help create a better and stronger city.”

“Affordable housing is one of New York City's greatest needs,” said NYCERS Trustee and New York City Public Advocate Betsy Gotbaum. “I am proud that NYCERS has taken this opportunity to enhance the affordable housing stock and make New York more livable for working families."

NHS is a citywide not-for-profit committed to helping New Yorkers buy, improve and keep their homes.  Since its inception in 1982, NHS has helped 3,327 families to purchase their first home, and 3,340 low- and moderate-income residents to improve their homes and buildings.  NHS has offices in Bedford-Stuyvesant, downtown Brooklyn, East Flatbush, Staten Island, North and South Bronx, Jamaica, Northern Queens and Manhattan.

“We are very pleased to be able to continue to help small investors to maintain and improve the multifamily and mixed-use buildings which are the backbone of many New York City neighborhoods,” said Bernell Grier, Chief Operating Officer of NHS. “This financing is a result of public and private partnership, the combination this city needs to fulfill the mission to preserve affordable housing throughout New York City."

Since the inception of the program, PPAR has invested $371 million in New York City for close to 21,000 units of housing and has outstanding commitments for $254 million, representing over 6,000 units.

NHS was selected based on a solicitation for proposals conducted by the Comptroller’s office. Lenders to affordable multifamily housing developers and owners can apply at any time to qualify for the PPAR program. PPAR is a standardized investment program with the target lending area being the five boroughs of New York City.

The trustees of the city’s pension systems are:

NYCERS: Comptroller Thompson; Commissioner Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents C. Virginia Fields (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Carroll (Carl) Haynes, President, International Brotherhood of Teamsters, Local 237.

New York City Police Pension Fund: Comptroller Thompson; Mayor Bloomberg; Commissioner Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edwin Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

TRS: Comptroller Thompson; Commissioner Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.

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