Community Preservation Corporation Exceeds FY2016 Goals While Nearly Doubling Loan Volume and Increasing Total Investment by $96 Million Over Previous FY
CPC’s Loan Portfolio Sees Focus on Serving Small Properties and Commitment to Investing with Government Partners to Address Affordable Housing Crisis
The Community Preservation Corporation (CPC), a leading nonprofit affordable housing and community revitalization finance company, announced today that it closed 119 loans for a total of $468 million invested in affordable and workforce multifamily housing projects in Fiscal Year 2016 (FY16) which ended on June 30th. CPC outpaced its original FY16 goals of 85 loans and $420 million, and eclipsed the entirety of a successful FY15 which saw the company close a total of 60 loans worth a total of $372 million.
CPC’s success in FY16 demonstrates the company’s renewed focus on investing in the places and projects where it can be the most effective in revitalizing underserved neighborhoods. Since its inception, CPC has leveraged approximately $9.7 billion in private and public investment to finance more than 170,660 units of affordable and workforce housing.
“We are making good on the promise of returning to our mission of serving the needs of small buildings and underserved communities. The volume of loans we are closing is impressive and it shows that we’re helping meet a critical need by putting stable capital in the hands of more building owners,” said Rafael E. Cestero, President and CEO of CPC. “Over the last year we refined our operations, became more efficient, and have transacted at a consistent pace and an increased scale. Every loan makes a difference to an owner who needs access to capital, to the families who will have an affordable place to call home, and to communities that are being made whole.”
CPC FY16 Lending by Regional Office
Regional Office Projects Financed Total Investment
New York City 40 $136.1 million
Hudson Valley 37 $147.9 million
Capital Region 17 $60.3 million
Central & Western New York 25 $123.7 million
In FY16 CPC focused on its core mission of serving the lending needs of small buildings with the company significantly increasing its loan volume. Seventy-five of CPC’s FY16 loans were made to small buildings of fewer than 49 units, with 40 of those loans going to projects of 19 units or less – helping meet a critical need by putting stable capital in the hands of more small building owners who often lack the access to funding and resources that are available to larger developers and property owners for capital repairs and acquisition, and refinancing.
A key component in CPC’s focus on serving small building is Freddie Mac’s Small Balance Loan (SBL) program which provides permanent mortgages ranging from $1 - $5 million for the acquisition or refinancing of small multifamily properties with five or more units. As one of Freddie Mac’s select seller/servicers, CPC closed 27 SBL loans for a total of $63.7 million with an average loan size of $2.34 million in FY16.
As a leading nonprofit mortgage lender, the deep, strategic government partnerships CPC has developed over the years have been critical to its thoughtful approach to preserving and nurturing the creation of new affordable housing. CPC continues to collaborate with its partners in the state and local government to achieve the mission of addressing the affordability crisis by leveraging public dollars for affordable housing and community revitalization.
“CPC is one of the State’s most productive and innovative affordable housing financing companies. They have been a trusted partner over the years, helping to bring stable housing opportunities to hardworking New Yorkers in communities from Buffalo to Watertown to Bed-Stuy. We look forward to continuing this important work together, in support of Governor Cuomo’s $20 billion plan to address both our affordable housing needs and homelessness,” said James S. Rubin, Commissioner, NYS Homes and Community Renewal.
“The City of New York relies on the strength and commitment of its partners to assist New Yorkers,” said HPD Commissioner Vicki Been. “The admirable work done by the Community Preservation Corporation, helps us achieve our goals for a safer, more affordable New York City.”
In FY16 CPC partnered with New York State Homes and Community Renewal (HCR), providing $106.8 million in private investment to 19 affordable housing projects with a total of 1,227 units financed throughout the state. CPC also partnered with the New York City Department of Housing Preservation and Development (HPD), providing $66 million in private investment to 26 affordable housing projects with a total of 710 units financed in New York City.
About the Community Preservation Corporation (CPC)
Established in 1974, the Community Preservation Corporation (CPC) is a nonprofit affordable housing and community revitalization finance company that believes housing is central to transforming underserved neighborhoods into thriving and vibrant communities. We provide innovative capital solutions, fresh thinking and a collaborative approach to the often complex challenges that owners and developers of multifamily housing face. To date, CPC has leveraged approximately $9.7 billion in private and public investment to finance more than 170,660 units of affordable housing. Our work with our partners has helped revitalize countless neighborhoods throughout New York, and provided quality housing for families, senior citizens, and individuals with disabilities. Follow us at communityp.com, and on Facebook, Twitter and LinkedIn.