At CPC we look to our mission and values to guide our work, and we measure success by the impact we help to create in communities through our investments in housing. In Fiscal Year 2017, the company closed 103 loans worth $395 million and invested an additional $5.8 million of our capital as partners in our first three equity projects—growing our impact across New York and beyond, the “CPC way.” Since our inception in 1974, CPC has leveraged approximately $9.87 billion in private and public investment to finance more than 185,000 units of housing.
Our accomplishments in Fiscal Year 2017 are a reflection of our focus on the ways in which we strive to achieve our mission to transform underserved neighborhoods into thriving and vibrant communities. At CPC we focus on areas where our unique expertise, combined with our lending and investment tools, can make an impact by serving the needs of our borrowers as well as the diverse housing development goals of communities large and small.
Small buildings make a big impact in our communities. From major metro areas like New York City to our historic downtowns, in the suburbs and rural communities, small multifamily buildings are the backbone of our housing stock. Often older and in need of capital for maintenance and upgrades, they also tend to be more affordable, most often serving the housing needs of low- and moderate-income residents.
Ensuring these buildings continue to be good, affordable homes for their tenants and long-term resources of housing for their communities starts with providing their owners with the right financial tools for the job. In Fiscal Year 2017, we worked to expand our toolbox of permanent lending products by forging new partnerships with the Federal Housing Administration and Ginnie Mae to bring our borrowers new sources of long-term, fixed-rate capital. Freddie Mac’s Small Balance Loan product continues to provide our borrowers with a flexible tool for acquisition and refinancing, and we are putting an emphasis on products like Targeted Affordable Housing to help preserve rental affordability in underserved neighborhoods.
Responsible long-term ownership can be an anchoring force that helps preserve housing affordability, reduces displacement, and stabilizes neighborhoods. Coupled with our diverse toolbox of lending products, our new equity investing platform leverages our history as an innovative finance partner and gives us a new tool to drive our mission of bringing a positive impact to communities.
Fiscal Year 2017 saw us close our first three equity projects, where, along with our investing partners, we are providing a commitment to the long-term ownership and affordability of a combined 703 units. Well-managed affordable and workforce rental housing helps to create stable and vibrant communities. Whether we are acting as a lender or an investor/owner, our goal is to provide capital solutions that promote good stewardship of buildings and contribute to the impact these buildings have on the people who call them home and the neighborhoods that depend on them.
Efficient and sustainable buildings cut down on energy consumption, have smaller carbon footprints, and provide a host of long-term benefits for owners, residents, and communities. Importantly, savings from energy-efficient property improvements can play a major role in the long-term economic stability of multifamily buildings, which is critical to the preservation of affordability in our communities. This year we developed and launched CPC’s Underwriting Efficiency handbook to give lenders a resource of information on the benefits of efficiency improvements and how to incorporate the savings into the underwriting process. With such prevalent influence over the economics and condition of our housing stock, lenders have an opportunity—and we believe a responsibility—to take the lead in driving the industry forward on this important issue.
As we look ahead to Fiscal Year 2018, the industry is experiencing a great deal of uncertainty related to federal budget proposals and tax reform plans that threaten to drastically reshape the market in ways that could be detrimental to the long-term future of affordable housing and community development. At the same time, we have housing plans in New York City and at the state level that are pushing forward at a historic pace in terms of both production and resources available.
Our success and growth as a company have always been tied to our focus on our mission. By following that simple but essential blueprint in Fiscal Year 2017, we were able to bring new products to our borrowers and find fresh and innovative ways to use our capital and our expertise to invest in the communities we serve. As we look to the future, I am confident that we are well positioned to tackle whatever challenges may arise, and I look forward to the opportunities for CPC to strengthen our relationships, grow our business, and increase our impact throughout the state and the region.
Sincerely,Rafael E. Cestero President & CEO