Fiscal Year 2016
Annual Report



At CPC, our core values define who we are as an organization and guide the way we work with our partners to shape the communities we serve.

We have a deep commitment to our mission. We work hard to create the best outcomes for our customers and communities, and we have fun doing it.

We respect, trust, and empathize with others. We are supportive and responsive, and value different perspectives. While we are diverse in backgrounds and skills, we are united by our values and our passion for bringing capital to underserved communities.

We strive for excellence in everything we do, and aim to add measurable value to neighborhoods, customers, and the industry. We go the extra mile to find the right solution and deliver on our commitments.

We believe in accountability and operate with the highest standards of integrity and transparency. We communicate openly and honestly with our partners and each other.

We embrace collaboration. The connections we foster with our colleagues, customers, government partners, and other like-minded organizations are crucial to improving housing quality and sustainability and to creating communities of opportunity for all.


CPC’s 2016 story is one of remarkable growth and accomplishment. We set aggressive goals, worked to expand our lending capacity, and focused on our core mission of serving the unique needs of small buildings.

We exceeded our goals, closing 119 loans for a total of $582 million invested in multifamily housing projects in neighborhoods large and small, in every corner of the state. Since our inception in 1974, CPC has leveraged approximately $9.7 billion in private and public investment to finance more than 170,660 units of affordable and workforce housing.

With lead lender Citi, Wells Fargo, Morgan Stanley, the New York City Retirement Systems (NYCRS), New York City Housing Development Corporation (HDC), and 12 other funding partners, we extended our revolving construction lending facility and expanded it to $500 million. We also partnered with Goldman Sachs to create a $70 million facility to finance construction loans for developers participating in the New York City Department of Housing Preservation and Development’s (HPD) homeownership programs.

In our first full year as a Freddie Mac seller/servicer for the Small Balance Loan (SBL) product, CPC closed 27 SBL loans, with an average loan size of $2.34 million, for a total of $63.7 million—filling a critical gap in the demand for flexible permanent capital tailored to the needs of small-building owners.

This year we continued to increase our impact, strengthening our connection to neighborhoods we’ve long served and working to expand our reach to communities where our unique expertise can do the most good.

CPC continued to establish its presence in Western New York with the opening of our office in Buffalo, which will enable us to better serve the communities and borrowers in the region.

Mission-oriented investments that promote responsible ownership and long-term sustainability can help preserve affordability, reduce displacement, and stabilize communities. This year we launched our Equity Investing platform, Community Capital Advisors, to increase our social impact by identifying like-minded partners to support long-term housing preservation projects. We also continued to refine and put our sustainability underwriting procedure into practice as we originated loans on more than 1,360 high-performance units.

Our commitment to our customers and the value we provide them remained our focus as we rolled out Borrower Inquiry, our new tool that provides CPC borrowers with 24/7 online access to comprehensive information about their loans. Additionally, we completed an extensive rebranding of the company that refreshed our look and put an emphasis on our values, impact, and commitment to our mission.

We continue our work on New York City’s Build it Back (BiB) program to help rental building owners and co-op, condo, and individual unit owners recover from Superstorm Sandy. We are putting those lessons learned to use as we administer New York State’s Small Project Affordable Rental Construction (SPARC) program to finance projects to restore and create housing in communities impacted by Sandy, Hurricane Irene, and Tropical Storm Lee.

Our success has been driven by our commitment to our core values, our investment in projects where we can be the most effective in revitalizing neighborhoods, and our focus on strengthening our relationships.

As we embark on 2017 and beyond, CPC’s focus and direction are clear, and we have every reason to look to the future with confidence.


Rafael E. Cestero
President & CEO

Fiscal Year 2016 Highlights


At CPC, we believe that housing is central to transforming underserved neighborhoods into thriving and vibrant communities.
1351 Greene Avenue, Brooklyn, New York

New York’s small multifamily rental properties—buildings with between 5 and 49 units—play a critical role in providing housing for low- and moderate-income individuals and families throughout the state. In New York City alone, nearly 65% of rental apartments are contained in buildings with fewer than 50 units. Many of these are “naturally occurring affordable housing” (NOAH), market-rate properties that meet the affordability demands of the communities they serve without relying on government subsidies.1

NOAH properties have been, and will continue to be, a critical segment of the housing stock that serve many low- to moderate-income families. As these buildings continue to age, and maintenance and operational costs continue to rise, owners already operating on thin margins find they lack access to the stable capital and loan products necessary to ensure the long-term financial and physical sustainability of their properties.

At CPC, we are keenly focused on our core mission of addressing the acute gap in the market for flexible lending products for small multifamily buildings. We are pursuing new opportunities to expand our toolbox with new products and investment opportunities, and we are collaborating across our base of government and private sector partners.

“Our partners look to us to provide a consistent source of capital to finance multifamily properties in the state’s underserved housing markets,” said Sadie McKeown, CPC’s Chief Operating Officer and Executive Vice President. “Over the course of our 40-year history, CPC has generated more than $9.7 billion in public and private investment, helping to grow and sustain 170,660 units of housing.”

According to Ralph DiBart, Executive Director of the New Rochelle Business Improvement District, CPC’s commitment to preserving NOAH stock across the state is unparalleled: “CPC is uniquely able to go into a neighborhood and collaborate with developers and community leaders to bring fresh thinking to the challenge of revitalizing underserved neighborhoods through rehabilitation and preservation. In the case of downtown New Rochelle, their financing has helped create mixed-income housing units that enable working families to live close to public transportation.”

1Sources: American Community Survey (2014),NYU Furman Center


Downtown Buffalo, New York

As a mission-driven company, CPC is committed to being in the communities we serve and to building lasting and meaningful relationships with our partners based on trust, loyalty, and excellence. These strong relationships and our understanding of the unique housing challenges facing these communities have helped to improve housing quality, drive private investment, and positively impact the individuals and families who call these buildings home.

In August 2016, CPC reaffirmed its commitment to bringing unique capital solutions to communities throughout the state with the opening of an office in Buffalo. Located at 534 Delaware Avenue—in the heart of Buffalo’s Allentown neighborhood—CPC’s return to Buffalo will enable us to more actively engage with developers, community leaders, and others to boost the number of mixed-income and affordable housing units that are being preserved, rehabilitated, and constructed across Western New York each year.

To date, CPC has provided $259 million in financing for 151 multifamily developments across Western New York—$167.5 million of which helped to finance 89 developments in Buffalo.

“Few lenders have the commitment or reach of CPC,” said Michael DeWitt, Senior Vice President and Regional Director of CPC. “CPC has been bringing stable capital and impactful investments to quality multifamily housing projects in Western New York since the early 1990s. We look forward to working even more closely with our partners.”


Expanding our Impact

CPC is dedicated to bringing stable permanent lending capital to multifamily projects in underserved and growing communities. In our 2016 Fiscal Year, we laid the groundwork for expanding our permanent lending platform into underserved communities outside of New York, targeting the broader Northeast region.

Key to this expansion is our longtime relationship with Freddie Mac. Whether providing Conventional Financing products or capital to address the needs of small buildings through the Small Balance Loan program, the decades-long partnership between CPC and Freddie Mac offers borrowers reliable loan products tailored to multifamily developments of all sizes.


Creating Environmentally and Economically Sustainable Neighborhoods
Solar Panels, 50 Charlotte Street, Rochester, New York

The need for healthy, stable, and viable housing has never been more critical to the economic and environmental sustainability of our communities, especially at a time when the gap between what people earn and the cost of rent and utilities continues to grow.

CPC believes in providing safe, healthy, and affordable housing throughout the neighborhoods we serve. “By supporting the development of more energy-efficient buildings, we are furthering stable ownership of multifamily rental buildings, preserving rental affordability, and creating more sustainable communities,” said CPC Sustainability Manager, Elizabeth Derry.

One of the biggest barriers to pursuing energy conservation measures can be restricted access to sufficient capital. To help reduce both utility and operational costs and carbon footprints, CPC has developed a simple financing methodology to catalyze integration of energy efficiency and water conservation methods into construction loans.

The platform is driven by four principles: underwriting, origination, education, and collaboration. By using the projected savings of energy and water retrofit measures in the first mortgage underwriting, CPC’s approach provides clients with low-cost capital. This allows for a quality retrofit that locks in energy and water savings, helping to ensure long-term economic stability of the property.


Supporting Housing Preservation
Charlotte Square, Rochester, New York

“Responsible, long-term ownership of multifamily buildings can ensure that they will remain financially strong and physically sound,” said CPC Senior Vice President, Elizabeth Propp. “In underserved or changing neighborhoods, this can help preserve affordability, reduce displacement, and serve as a force for stabilizing and revitalizing the community.”

CPC’s Equity Investing platform endeavors to increase our positive social impact through New York City and New York State by investing alongside like-minded partners to support long-term housing preservation projects that meet our mission-driven financial and community revitalization goals.

This initiative leverages CPC’s record as an innovative housing finance partner as well as our relationships within the affordable housing industry and with our government partners statewide. In turn, communities and owners will benefit from a source of patient equity financing that is aligned with the investment horizon and the goals of well-managed affordable and workforce rental housing.


  • Revitalizing
    New York
  • Serving
  • Supporting

Revitalizing New York State

$9.7 Billion invested*

170,660 units created or preserved since 1974
*Public and private funds
  • $1.1 billion invested.
  • 20,845 units created or preserved
  • $680 million invested
  • 13,825 units created or preserved
  • $389 million invested
  • 7,430 units created or preserved
States not pictured.
  • $1.4 billion invested
  • 20,870 units created or preserved
  • $5.9 billion invested
  • 105,475 units created or preserved
  • $216 million invested
  • 2,220 units created or preserved
  • Central & Western New York Region
  • Capital Region
  • Hudson Valley Region
  • New York City
  • Long Island
  • Connecticut, Pennsylvania,
    Massachusetts & New Jersey

Serving Families


Supporting Communities


Regional Stories

“Throughout the long process, CPC supported our mission to breathe new life into this once-vital part of the city.”

— Anthony Hammel, CEO and Co-Founder of ELD Properties
New York City
FY 2016
$234.5 MILLION
1,453 UNITS



New York City
FY 2016


314 Troutman Street,
Brooklyn, New York

At a time when New York City is experiencing unprecedented growth, new market pressures on the cost and demand for housing are driving change in neighborhoods across the city. In the face of these challenges, CPC’s commitment to investing in the preservation of affordable housing is stronger than ever. As the rehabilitation of 314 Troutman Street demonstrates, in today’s New York, economic development and the preservation of affordable multifamily housing go hand in hand.

Located in the heart of Bushwick, this three-story, six-unit building had endured years of neglect plus a fire that rendered the top two units uninhabitable, before Ridgewood Bushwick Senior Citizens Council (RBSCC) acquired it from the U.S. Department of Housing and Urban Development (HUD) in 2012. In the interim, CPC partnered with HPD to craft a financing package that would make economic sense while enabling RBSCC to make renovations to the building, including significant structural work, the replacement of all major systems, and the installation of all new windows and roofing.

“CPC shares our belief that restoring small multifamily housing and preserving their affordability in neighborhoods across New York is a win-win for the community,” said Scott Short, Assistant Director, Business Development and Real Estate at RBSCC. “Because they’ll champion projects like 314 Troutman Street, six units of affordable housing will be restored and six families will have safe, quality housing to once again call home.”

27 Granite Street,
Brooklyn, New York

CPC provided a $12 million construction loan through partnership with HPD to support the gut-rehabilitation of ten small buildings, including 27 Granite Street, as well as the new construction of one building. The project also benefited from Low Income Housing Tax Credit (LIHTC) funds. When the renovation and construction work is complete the portfolio will consist of 11 buildings totaling 46 residential units and two commercial spaces; all residential units will be affordable to tenants at or below 60% Area Median Income (AMI)

96 Diamond Street,
Brooklyn, New York

The borrower, a local real estate investor with more than 25 years of experience developing, owning and managing properties in New York City, used Freddie Mac’s SBL product to secure a $2.2 million permanent loan to refinance this eight-unit building. 96 Diamond Street is located in a diverse and growing neighborhood which is ideally situated near a number of local amenities, major thoroughfares and public transit options.

Hudson Valley
FY 2016
1,405 UNITS



Hudson Valley
FY 2016


48 Burling Lane,
New Rochelle, New York

New Rochelle has a comprehensive plan to reshape its aging downtown area. Part of this transformation is being driven by the Burling Lane Triangle, a three-street transit-oriented development (TOD) project that is being developed by ELD Properties, a longtime partner of CPC.

One anchor to the triangle is 48 Burling Lane, which is within walking distance of New Rochelle’s Downtown District, the Metro-North train station, and Montefiore New Rochelle Hospital. This recently completed 40-unit mid-rise apartment building serves the community’s need for market-rate workforce housing geared toward residents looking for a walkable urban community.

“48 Burling Lane now stands on a site that had been largely vacant for two decades until we bought the property in 2002. However, we couldn’t begin construction until recently, when the area was finally rezoned for multifamily housing,” said Anthony Hammel, CEO and co-founder of ELD Properties. “Throughout the long process, CPC supported our mission to breathe new life into this once-vital part of the city. With their continued assistance, the Burling Lane Triangle will add 460 units of high-quality rental housing to this New Rochelle neighborhood.”

Lofts on Main 922 Main Street,
Peekskill, New York

New construction of two mixed-use buildings in Peekskill’s arts district will create 74 units, 50 of which are reserved for artists earning at or below 60% AMI. The $15.5 million construction loan includes Community Development funds from the City of Peekskill (CHEIR funds), Middle Income Program (MIP) funds, a New York State Energy Research and Development Authority (NYSERDA) grant, and Brownfields Tax Credits, as well as an $8.5 million participation from Putnam County Savings Bank.

The Lombardi 11 Park Place
New Rochelle, New York

A tenant enjoys her new apartment in this 48-unit building. CPC provided a $10.5 million construction loan and a State of New York Mortgage Agency (SONYMA)—insured permanent loan through the New York State Common Retirement Fund (CRF).

FY 2016
1,602 UNITS



FY 2016


Buffalo River Landing, 1 South Street,
Buffalo, New York

Cranes are rising in Buffalo, and with them, once-abandoned industrial sites are being reshaped into buzzing neighborhoods. Here, for the first time in decades, a diverse population of young professionals, families, and others are choosing Buffalo to live and work-and the Buffalo River Landing project is helping to lead that renaissance.

This stunning five-story mixed-used building is being constructed on the site where the Erie Freight House once served as a transfer point between water and rail shipments. The original structure and adjoining property had been declared a brownfield and required demolition and environmental remediation.

“Few lenders had any interest in this project,” said lead developer Sam Savarino, CEO of Savarino Companies. “CPC saw beyond the obstacles and helped us to secure an $11.45 million construction loan. When the building opens in January 2017, Buffalo River Landing will bring to the Old First Ward 78 units of apartment living, with direct water access and commanding views of the Buffalo River and the city skyline. Equally important, it will infuse a once-struggling area with a new sense of possibility and purpose.”

Deitz Building, 225 Wilkinson Street,
Syracuse, New York

Adaptive reuse of historic factory creates 92 units and new commercial space. CPC and partners Pathfinder Bank and NBT Bank provided a $19.2 million construction loan. CPC also provided a SONYMA—insured $16.2 million permanent loan funded through the New York State CRF.

Capital Region
FY 2016



Capital Region
FY 2016


Tapestry on the Hudson, 599 River Street,
Troy, New York

Curled along the Hudson River, the city of Troy, New York, teems with rich history and timeworn Victorian-era buildings. Now many of the area’s abandoned warehouses and forgotten spaces are being repurposed and infused with new life. One example is the redevelopment of a vacant seven-story riverfront warehouse dating back to 1899 into a leading-edge, energy-efficient, mixed-income apartment building.

The project, Tapestry on the Hudson, which is being developed by The Community Builders, is unique in its mission: when completed in mid-2017, it will feature 52 units of upscale but affordable apartments to low- and middle-income families and 15 supportive housing units for formerly homeless families. The project is also innovative in its financing: by including projected savings from energy efficiency upgrades, CPC leveraged these utility savings to bring additional capital to the project.

“Energy conservation is an important part of our plans for the Tapestry project,” said Susan McCann, Regional Vice President, The Community Builders. “CPC has a commonsense underwriting process that integrates the cost savings of our energy and water conservation measures into our construction loan. This is helping us to preserve rental affordability and create more sustainable communities, and it’s why we consider CPC a go-to lending partner.”

Regency Park Apartments, 2120 Western Avenue,
Guilderland, New York

Located 20 minutes from downtown Albany, the Regency Park Apartments sit on 37 acres and encompass 26 apartment buildings with a total of 250 rental units, carports, a clubhouse and other amenities. The borrower, who was in the process of making a significant investment in capital improvements to the property, was able to refinance with a $24 million Freddie Mac Conventional Loan.

“CPC has a commonsense underwriting process that integrates the cost savings of our energy and water conservation measures into our construction loan.”

— Susan McCann, Regional Vice President, The Community Builders
See More Stories
Note: In FY16, $14 million was invested in projects outside New York state.


CPC & CPCR Consolidated Financial Highlights ($000s)
Unaudited results for the 12 months ended June 30, 2016

Unrestricted Cash $25,992
CPC Loan Portfolio $213,288
Investment in Real Estate $133,846
Other Assets $63,027
Liabilities & Fund Balance
Bank Debt $217,775
Other Liabilities $23,678
Fund Balance $194,700
Operating Revenues
Net Interest Income $4,715
Commitment Fees $6,234
Servicing Revenue $7,510
Mortgage Servicing Rights, Net $4,484
Real Estate Distributions $7,121
Grants and Other Revenue $2,767
Total Revenue $32,831
Operating Expenses
Salaries and Benefits $19,220
Provision for Loan Losses $451
Other Operating Expenses $7,509
Total Operating Expenses $27,181
Operating Income $5,651
Non-Operating Revenues and Expenses
Fair Value Changes and Other Income $9,385
Small Distressed Building Program Grant $1,940
Income Taxes $280
Depreciation, Amortization and One-Time Costs ($1,819)
Net Income $15,437



CPC Leadership


Rafael E. Cestero
President & CEO
Sadie McKeown
Executive Vice President
Chief Operating Officer
Richard A. Kumro
Executive Vice President
General Counsel & Secretary
David Rothberg
Executive Vice President
Chief Financial Officer
Carolyn Au
Senior Vice President
Director of Portfolio Services
Wanda Chin
Senior Vice President
Chief Credit Officer
Richard Conley
Senior Vice President
Originations Director
Michael DeWitt
Senior Vice President
Regional Director,
Western New York
Jeff Ely
Senior Vice President
Sharon Fierstein
Vice President
Andrea Gladstone
Senior Vice President
Deputy General Counsel
Thomas McGrath
Senior Vice President
Director of Upstate Revitalization
Doug Olcott
Senior Vice President
Regional Director,
Hudson Valley
Nicholas V. Petragnani, Jr.
Senior Vice President
Regional Director,
Central New York
Arthur Phidd
Vice President
Chief Information Officer
Elizabeth Propp
Senior Vice President
Investments & Acquisitions
Robert Riggs
Senior Vice President
Regional Director,
New York City & Long Island
Jaime Sharrock
Vice President
Strategic Initiatives &
External Affairs
Michael Skrebutenas
Senior Vice President
Regional Director,
The Capital Region

Board of Directors

Bruce A. Beal, Jr. *
Related Companies
Rafael E. Cestero
President & CEO
The Community Preservation Corporation
Robert J. Duffy
President & Chief Executive Officer
The Rochester Business Alliance
Ingrid Gould Ellen
Faculty Director
NYU Furman Center for
Real Estate and Urban Policy
Todd A. Gomez
Senior Vice President
Bank of America
Carol M. Joseph
Real Estate/Legal Consultant
D. Kenneth Patton *
Dean of Real Estate (ret.)
New York University
Real Estate Institute
Gregory R. Reimers
REB, Market Manager
JPMorgan Chase Bank
Richard Roberts
Managing Director,
Red Stone Equity Partners, LLC
Anders M. Tomson
Capital Bank
Alan Wiener *
Managing Director
Wells Fargo Multifamily Capital

* CPC Resources Board Members


Michael Hegarty
Arthur H. Seter
John Somers
Michael J. Wechsler


New York City
Robert Riggs

28 East 28th Street
9th Floor
New York, NY 10016

Hudson Valley
Doug Olcott

2 Church Street
Suite 207
Ossining, NY 10562

Capital Region
Michael Skrebutenas

54 State Street
Suite 201
Albany, NY 12207

Central New York
Nicholas V. Petragnani, Jr.

315 North Clinton Street
Syracuse, NY 13202

Western New York
Michael DeWitt

500 Seneca Street
Suite 140
Buffalo, NY 14202

Miriam Zinter

510 Clinton Square
Rochester, NY 14604

Equity Investing
Elizabeth Propp

28 East 28th Street
9th Floor
New York, NY 10016

Permanent Mortgage Lending
Richard Conley

28 East 28th Street
9th Floor
New York, NY 10016