Fiscal Year 2020 Annual Report - Community Preservation Corporation

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Fiscal Year 2020 (FY 20) was a year of accomplishments, contrasts and challenges that saw CPC put its best foot forward when crises hit.

CPC was rated AA- with a stable outlook by S&P Global Ratings, elevating the company to a select category of rated Community Development Financial Institutions (CDFI). The achievement paved the way for CPC to execute the largest single bond raise by a CDFI, a $150 million public offering of sustainability bonds that bolstered liquidity and stability in support of the company’s mission. CPC also furthered its commitment to delivering capital to communities for affordable housing and revitalization of historic downtowns and collaborated with New York City Housing Authority (NYCHA) residents to work toward the comprehensive rehabilitation of a 16-property portfolio of distressed buildings.

The company continued to expand its mortgage lending platform and further diversified its product base. Also in FY 20, CPC announced a goal to become a carbon neutral company.

Then in March 2020, the COVID-19 pandemic struck the nation, causing the deaths of more than 100,000 people before the fiscal year’s end, along with a historic economic collapse that threatened the stability of millions. The Black community, which suffered disproportionately from the impacts of COVID-19, was hit again when George Floyd was murdered, sparking an ongoing social justice movement with protests across the country calling out the injustices Black people experience every day simply because of the color of their skin.

The hard work in the first half of the year gave CPC the financial strength and stability to bring its mission-focused efforts to communities in a time of unprecedented crisis. In May, during the height of the pandemic, Governor Cuomo announced that CPC would administer the State’s relief program for small building owners suffering economic loss due to COVID-19. As the year came to a close, CPC planned to launch Acquiring Capital & Capacity for Economic Stability & Sustainability (ACCESS), a $20 million initiative to invest in Black and other minority entrepreneurs who have disproportionately experienced barriers to entry within the development industry.

FY 20





Dollars Invested


Units created or preserved


Video Message

Video Message from President & CEO Rafael E. Cestero

The global pandemic in Fiscal Year 2020 underscored the enduring importance of our mission. Thank you to our borrowers, partners, the CPC team and the communities we serve across New York and across the country. We are thankful for your partnership and for our work together during this time of unprecedented need.

We see great opportunity as a construction lender, to grow CPC Mortgage Company and to bring equity to bear to preserve much needed public housing and much needed affordable housing across New York.

Commitment to


The COVID-19 pandemic disproportionately affected many of the communities that CPC serves, underscoring the enduring importance of our mission. With the need for our capital more urgent than ever before, CPC is committed to lifting up neighborhoods and communities dealing with the worst economic fallout of the COVID-19 crisis and decades of disadvantage due to systemic racism. We are finding new ways to focus our capital on the neighborhoods and individuals who need it most and we will continue to ask ourselves how CPC can contribute to a more just and equitable society.


CPC works collaboratively with our partners to add value to the market and support the adoption of increased environmental and economic sustainability in our communities. This year, CPC continued leading the multifamily lending industry toward decarbonization with its achievement of carbon neutral operations, the publication of a new Passive House study, and the development of a comprehensive guide to financing high-performance buildings.


Acquiring Capital & Capacity for Economic Stability & Sustainability

While we believe that providing access to safe, affordable housing has helped to create stronger communities, we recognize that this is not enough to solve the problems of systemic racism that have existed in our country for hundreds of years. ACCESS was born out of conversations within the company, in the wake of the COVID-19 outbreak and the Black Lives Matter and social justice movements, about what CPC can and should be doing beyond its traditional lending work to create more equity and opportunity in the communities it serves.

New York Forward Loan Fund

Small multifamily buildings make up a significant piece of the rental housing stock in New York State. When COVID-19 left hundreds of thousands of New Yorkers jobless, a decline in rental income tested small building owners’ ability to pay mortgages, taxes, utilities and maintenance – all critical to providing safe, quality homes for residents. Because of CPC’s history of serving small building owners and operators, Governor Cuomo chose CPC to administer needed relief through the small buildings program under the State’s New York Forward Loan Fund.

Small Buildings

CPC believes that small multifamily buildings are the cornerstone of stable, vibrant communities. In FY 20, CPC closed the first two projects under the State’s Small Building Participation Loan Program (PLP), providing rehabilitation financing and ensuring that two upstate properties remained affordable to residents. CPC also financed the first acquisition through the City’s Neighborhood Pillars Down Payment Assistance Fund, allowing nonprofit Settlement Housing Fund to purchase, upgrade and preserve the affordability of a building in the Bronx.

CPC Staff Giving Back

An essential component of our work is our ongoing support for local communities and nonprofit partners. Pre-pandemic, the team came together for a service day at a Brooklyn school and volunteered to donate, wrap and hand out holiday gifts to East Harlem elementary students. When COVID-19 hit, CPC supported our local partners with relief grants to help meet the escalating needs of community members.

Uniquely CPC

The majority of CPC’s New York construction lending business continued to support energy efficient and affordable projects.


  • 71% affordable projects
  • 66% small multifamily building projects
  • 48% of construction units financed were energy efficient retrofits


CPC Mortgage Company, a subsidiary of CPC, offers a suite of Freddie Mac, Fannie Mae and Federal Housing Administration (FHA) products for acquisition, refinance, rehabilitation and construction of multifamily properties.


  • $341 million in Agency loans
  • 62 loans originated
  • Expanded portfolio to reach 10 States


The CPC equity business is steered by the belief that a commitment to responsible, long-term stewardship of multifamily housing can help preserve affordability, reduce displacement, and act as a stabilizing force for residents and their communities.


  • 1,197 Units Owned in FY 20


Fiscal Year


Housing Units

New York State FY 20

Our Impact Since 1974




Dollars Invested


Units created or preserved



Preserving Long-Term Affordability

In New York City (NYC), where the need for affordable apartments is urgent and space for building new apartments is limited, the preservation of existing affordable housing stock is critical.

Learn More


Transforming a Former Factory

This project is breathing new life into a former factory that sat vacant in downtown Newburgh for more than 20 years. The completed mixed-use development will bring nine residential units, including live-work studios for artists, and a co-working space to the Newburgh community.

Learn More


Achieving Homeownership

This gut renovation of a portfolio of three properties located in Brooklyn’s Fort Greene, Bedford-Stuyvesant and Crown Heights neighborhoods will facilitate the transition of 13 residential units in two city-owned buildings to tenant-led cooperatives.

Learn More


Revitalizing a Historic Block

The rehabilitation of Center City Place transformed six formerly vacant and underutilized buildings, which share a block with City Hall, into 41 naturally affordable residential units and eight commercial spaces totaling 14,000 sf.

Learn More


Investing in the South Bronx

In September 2019, CPC made an equity investment to acquire, upgrade and preserve a six-building portfolio in partnership with SMJ Development, a certified Minority-Owned Business Enterprise (MBE) developer.

Learn More


Affordable, Supportive and Sustainable

With $8.1 million in construction financing from CPC, this project will bring 60 new affordable and supportive one-bedroom apartments to the Ithaca community.

Learn More


Energy Efficient, Mixed-Use Development

This new construction project is transforming the vacant site of a former gas station into a vibrant, mixed-use development that will bring workforce housing and space for three businesses to one of downtown Buffalo’s transportation corridors.

Learn More

$150 Million

Raised in Inaugural Public Offering of Sustainability Bonds


by S&P Global

Largest Bond Sale Completed by a CDFI

The successful execution of capital strategies over several years and through FY 20 put CPC in a position of long-term financial strength and stability, allowing the company to step in to assist its borrowers, government partners and underserved neighborhoods as they began to grapple with recovering from the devastating effects of COVID-19.

Currently one of the largest community development financial institutions (CDFI) in the nation that is dedicated to investing in multifamily housing, CPC joined a select group of certified CDFIs that have earned a S&P rating. The AA- rating with a stable outlook from S&P Global Ratings propelled CPC toward a successful public debt offering in February 2020: In the largest single bond sale completed by a CDFI, the company raised $150 million.

CPC expects to deploy the capital raised in furtherance of its nonprofit mission of investing in affordable and sustainable multifamily housing in New York State and City and throughout the Northeast.

Press Releases: Sustainability Bond Sale and AA- S&P Rating

Their strong S&P rating speaks volumes about the unique role CPC has played and the impact its investments in multifamily housing have made throughout their history. The ability to raise new sources of capital will give CPC the resources it needs to expand its impact and continue the good work that it does in communities.
Alan Wiener, Lead Independent Director, CPC Board of Directors, and Managing Director, Wells Fargo Multifamily Capital



CPC Consolidated Financial Highlights ($000s)
Unaudited results for the 12 months ended June 30, 2020


Unrestricted Cash $38,595
CPC Loan Portfolio
(net of Reserves)
Mortgage Servicing Rights $38,002
Other Assets $203,560

Liabilities + Net Assets

Outstanding Debt $429,079
Other Liabilities $92,220
Net Assets $227,686


Net Interest Income $6,129
Commitment Fees 5,859
Servicing Revenues 8,930
Mortgage Servicing Rights (1,270)
Grants and Other Revenues 15,887

Operating Expenses

Salaries and Benefits $29,660
Provision for Loan Losses 1,473
Other Operating Expenses 8,583
Provision for Loan Losses - Grants (6,503)
Deferred Rent Expense (1,712)
Depreciation, Amortization, and Income Taxes (2,498)
Other Operating Adjustments (236)
NET LOSS $(15,130)
Download Financials


Operating Committee

Rafael E. Cestero President & Chief Executive Officer
Chair, Operating Committee

Sadie McKeown Executive Vice President
Construction Lending & Initiatives
Vice Chair, Operating Committee
Carolyn Au Executive Vice President
Chief Operating Officer
John Cannon President
CPC Mortgage Company
Richard A. Kumro Executive Vice President
General Counsel & Secretary
David Rothberg Executive Vice President
Chief Financial Officer
Wanda Chin Senior Vice President
Chief Credit Officer
Jeff Ely Senior Vice President
Elizabeth Propp Senior Vice President
Investments & Acquisitions
William C. Russo Senior Vice President
Capital Strategies
Jaime Sharrock Vice President
External Affairs

Board of Directors

Bruce A. Beal, Jr. President
Related Companies
Rafael E. Cestero* President & Chief Executive Officer
Community Preservation Corporation
Eduardo Diaz-Perez Managing Director and Global Head of Real Estate and Asset Finance
Credit Suisse
Ingrid Gould Ellen Faculty Director
NYU Furman Center for Real Estate and Urban Policy
Todd A. Gomez Senior Vice President
Bank of America
Michael Hegarty Senior Advisor (Ret.)
CCMP Capital Advisors, LLC
Carol M. Joseph* Real Estate/Legal Consultant

Manuel Menendez, Jr.* Senior Vice President – Multifamily Chief Credit Officer (Ret.)
Fannie Mae
Richard Roberts Managing Director, Acquisitions
Red Stone Equity Partners, LLC
Gary Rodney* Chairman
Anders M. Tomson CEO and President
Chemung Canal Trust Company
President, Capital Bank
Steven J. Weiss Partner
Cannon Heyman & Weiss, LLP

Alan Wiener Managing Director
Wells Fargo Multi-family Capital

*CPC Mortgage Company Board of Managers



Elizabeth Propp

220 East 42nd Street, 16th Floor

New York, New York 10017

[email protected]



John Cannon

220 East 42nd Street, 16th Floor

New York, New York 10017

[email protected]


Upstate Revitalization

Thomas McGrath

480 Bedford Road, Suite 4201

Chappaqua, NY 10514

[email protected]


New York City

Robert Riggs

220 East 42nd St, 16th Floor

New York, New York 10017

[email protected]


Capital Region, New York

Michael Skrebutenas

54 State Street, Suite 201

Albany, NY 12207

[email protected]


Central New York

Nicholas V. Petragnani, Jr.

315 North Clinton St

Syracuse, NY 13202

[email protected]


Hudson Valley, New York

Doug Olcott

480 Bedford Road, Suite 4201

Chappaqua, NY 10514

[email protected]


Western New York

Andrew D’Agostino

500 Seneca Street, Suite 140

Buffalo, NY 14204

[email protected]



Atalia Howe

220 East 42nd Street, 16th Floor

New York, New York 10017

[email protected]


Corporate Headquarters

220 East 42nd Street, 16th Floor

New York, New York 10017

[email protected]