In an effort to generate risk-adjusted market rates-of-returns and to promote economic development within New York City, the New York City Retirement Systems (NYCRS) allocate 2% of pension assets towards Economically Targeted Investments (ETI). The ETI program is designed to address market inefficiencies by providing capital or liquidity to underserved communities and populations citywide.
The ETI program’s investments have historically been targeted towards affordable or workforce housing for low, moderate and middle income neighborhoods and populations in the five boroughs. These ETIs have revitalized neighborhoods by returning distressed properties to the City’s tax rolls and by developing new housing that is affordable to working people. Since the ETI program began in the 1980s, over $2 billion has been invested in New York City’s five boroughs.
NYCRS current active ETI investments include:
The Access Capital Strategies (ACS) Separate Account
The New York City Retirement Systems collectively have $350 million invested in the ACS Separate Account, anaffordable housing/anti-predatory lending strategy established in 2007. The account, managed by RBC/Access Capital, primarily invests in single-family mortgage backed securities (MBS). One of the program’s goals is to provide a source of fairly priced mortgages for low-, moderate- and middle-income home purchasers, including minority and women purchasers who might otherwise be vulnerable to predatory lending practices. Every loan in a MBS is screened to determine that it provides a safe, non-predatory-termed loan to the home purchaser. The income of eligible borrowers must be less than 200% of area median income (AMI), which is currently $181,200 for a family of four. More than half of the portfolio comprises borrowers at 95% or below AMI.
An additional goal of the program is to strengthen the secondary market for loans targeted to these segments of the population and encourage additional, similar bank lending. The program may also invest in multifamily housing or investments that are designed to support underlying community development activities targeted to low- and moderate-income neighborhoods.
RBC/Access Capital Strategies (ACS) Collateral Benefits Report as of 3/31/2016 (Inception: 2/1/2007)
| Investment | Total Units | Total # of Loans | |
|---|---|---|---|
| Multifamily | $167,054,619 | 33,390 | 45 |
| Single Family | $360,306,111 | 1,765 | 1,336 |
| Other | $9,041,740 | N/A | 17 |
| Total | $536,402,470 | 35,155 | 1,381 |
The AFL-CIO Housing Investment Trust (HIT)
The New York City Retirement Systems (NYCRS) began investing in HIT in 2002 and as of March 31, 2016, NYCRS had more than $750 million invested in the Trust. Although the Trust is national in scope, it has demonstrated a deep commitment to financing affordable housing in New York City. Since 2002, HIT has invested nearly $922 million to create or preserve multifamily and workforce housing in New York City for well over 30,000 affordable apartments and created 9,800 jobs across all industries. Projects must use union labor and have included 11 Mitchell Lama buildings and the historic Penn South Cooperative in Manhattan.
AFL-CIO Housing Investment Trust (HIT) Collateral Benefits Report as of 3/31/2016 (Inception: 12/31/2002)
| Investment | Total Units | |
|---|---|---|
| Multifamily | $628,371,600 | 21,313 |
| Workforce | $293,597,000 | 9,135 |
| Total | $921,968,600 | 30,448 |
| Single-Family | $ Amount of Home Loans | # Total Loans | # Member Loans |
|---|---|---|---|
| Bronx | $225,442,927 | 1,093 | 313 |
| Brooklyn | $893,563,076 | 3,686 | 1,188 |
| Manhattan | $183,746,586 | 763 | 242 |
| Queens | $875,476,360 | 3,627 | 970 |
| Staten Island | $420,059,040 | 1,799 | 590 |
| Total | $2,598,287,989 | 10,968 | 3,303 |
The Public Private Apartment Rehabilitation Program (PPAR)
This investment program finances multifamily buildings in the five boroughs. Working with 11 private and not-for-profit lenders, NYCRS issues forward commitments at fixed interest rates to provide permanent, long-term mortgages following the rehabilitation or construction of multifamily buildings with apartments that will remain affordable for the long term.
The program invested $1.1 billion for the preservation or construction of 38,074 affordable apartments as of March 31, 2016. Many of these ETIs have also created jobs in the construction industry and helped grow small businesses.
The eleven private and not-for-profit lenders for the PPAR program are:
- Bank of America Merrill Lynch
- Carver Federal Savings Bank
- Citibank Community Development
- Bellwether Enterprise
- New York City Housing Development Corporation (HDC)
- JP Morgan Chase
- Low Income Investment Fund
- Local Initiatives Support Corporation (LISC)
- Neighborhood Housing Services of New York City
- The Community Preservation Corporation
- Wells Fargo
Applications from lenders wishing to participate in the PPAR program are accepted on a rolling basis. See RFPs & Solicitations (under Asset Management and Related RFPs).
Request for ETI Proposals
The Comptroller’s Office intends to expand its ETI programs to achieve new ways of generating solid investment returns to NYCRS and create new opportunities for economic growth and development in New York City. An open-ended Request for Proposals (RFP) for Economically Targeted Investments is currently available on RFP and Solicitations page. For more information, please email ETI@comptroller.nyc.gov.