CPC, Citi, NYC Comptroller Stringer, HDC and partners launch $490 million for construction of affordable housing in New York City and upstate New York

New York Real Estate Journal
September 20, 2016

New York, NY The Community Preservation Corp. (CPC) along with lead funder Citi, New York City comptroller Scott Stringer, New York City Housing Development Corp. (HDC) president Gary Rodney, Wells Fargo, Morgan Stanley, and other contributing partners launched the extension of CPC’s existing revolving construction lending facility. This agreement adds $140 million to the facility, bringing it to a total of $490 million and giving CPC increased lending capacity to carry out its mission of providing flexible lending solutions that serve the unique affordable housing and revitalization needs of underserved communities.

CPC uses its construction lending facility to provide construction loans to developers of multifamily housing for the acquisition, construction, rehabilitation, and preservation of affordable housing for low and moderate-income families across New York State.

The capital in the facility is provided through the support of private and public institutions, which include Citi, Wells Fargo, Morgan Stanley, the New York City Retirement Systems (NYCRS), Deutsche Bank, Bank of America, HDC, Valley National Bank, M&T Bank, Citizens Bank, Orange Bank & Trust Company, Sterling National Bank, Flushing Bank, First Niagara Bank, and Capital Bank (a division of Chemung Canal Trust Co.).

“At CPC we believe that housing is central to transforming underserved neighborhoods into thriving communities. Our construction lending facility provides a critical source of stable capital and the flexibility that our borrowers need to make investing in the revitalization of those communities possible,” said Rafael Cestero, president and CEO of CPC. “The continued participation of these public and private institutions speaks volumes about the confidence they have in CPC’s ability to make a meaningful impact in neighborhoods from Melrose in the Bronx to the Hydraulics District in Buffalo. My thanks to all of our partners for their loyalty and commitment, and for their role in addressing the housing challenges facing our state.”

“The growth and revitalization of New York is critically important to Citi and affordable housing is a key element in this goal,” said Richard Gerwitz, co-head of Citi Community Capital. “CPC has proven to deliver financing solutions that are working across the state and we are proud to provide capital to continue this vital work.”

“Wells Fargo has a strong commitment to affordable housing,” said Duane Mutti in Wells Fargo’s Community Lending & Investment group. “We care about the communities we support, and CPC has a proven and successful model of investing in affordable and workforce housing throughout New York State. We are happy to support them in this project and provide a $75 million commitment to help New York families and communities.”

“Morgan Stanley is proud to work with a strong partner like CPC to deliver capital where it is critically needed,” said Joan Tally, Executive Director in Morgan Stanley Global Sustainable Finance. “Our increased commitment to this credit facility is a testament to CPC’s efforts and achievements in strengthening communities throughout New York State.” 

“Economically Targeted Investments are a critically important tool which allows the New York City Pension Funds to uplift communities in our City while delivering strong returns for our retirees,” New York City Comptroller Scott M. Stringer said. “Expanding the Community Preservation Corporation’s lending capacity will allow this organization to finance even more affordable housing in New York, and I am proud to continue supporting their mission.”

“We’re thrilled to provide capital to CPC for their important work of financing affordable housing and revitalizing neighborhoods,” said Amy Brusiloff, Senior CDFI Client Manager, Bank of America.  “Together, we’re supporting thriving economies by creating affordable housing options for those who need it most.”

“The renewed commitment of HDC and our many partners to CPC’s construction lending facility demonstrates the importance of public-private partnerships in addressing the City’s housing crisis,” HDC President Gary Rodney said. “HDC recognizes the vital role CPC plays in financing projects in communities that are in most need of affordable housing, yet often not served by traditional lenders. We are pleased to partner with NYCRS and all the private partners in this facility to extend CPC’s lending capabilities, which will ultimately lead to the creation and preservation of multifamily affordable housing in some of New York City’s most underserved neighborhoods.”

“Our more than decade long partnership with the CPC has benefited the construction and development of property throughout New York,” said Tom Iadanza, Executive Vice President and Chief Lending Officer at Valley National Bank.  “Our relationship advances the shared efforts to bring affordable housing and revitalization to the communities we serve.”

“We believe it was important for M&T Bank to build on our long-standing relationship with Community Preservation Corporation by renewing and expanding the organization’s credit line, allowing CPC to continue its vital work as a leading not-for-profit affordable housing and neighborhood revitalization finance company,” said David Clarke, Vice President and Senior Relationship Manager, Healthcare and Not for Profit Banking at M&T Bank. “M&T Bank succeeds when the communities we serve succeed and CPC has helped to develop more than 164,000 affordable housing units across our many communities.”

“Citizens Bank is excited to participate in the Community Preservation Corporation’s construction lending facility and to partner in CPC’s work to promote affordable housing in New York,” said Paul Taffe, President of Citizens Bank, New York. “Citizens is committed to strengthening our communities and supporting affordable housing so this is a great partnership for us.”

“CPC’s mission is consistent with our own; to be a meaningful contributor to the welfare of our host communities,” said Michael Gilfeather, President & CEO of Orange Bank & Trust Company.

“As a regional bank in the greater New York area with deep roots in commercial real estate, we are pleased to have the opportunity to help CPC raise additional funding for affordable housing construction,” said Vincent DeLucia, President of Sterling National Bank’s New York/New Jersey Regional Market.  “Affordable multi-family housing plays a vital role in the creation of stable, thriving, sustainable communities.” 

John Buran, President and Chief Executive Officer of Flushing Bank stated, “We are proud to participate in this Community Preservation Corporation facility. As a community bank, we recognize the important role that affordable housing plays in the growth and economic development of our local New York communities.”

“Capital Bank, a division of Chemung Canal Trust Company, is proud to support the upstate New York revitalization efforts of CPC.  Being part of an Upstate NY community bank that was founded in 1833, we have deep, strong roots in these markets and we are happy to partner with CPC in their efforts,” saidDaniel Fariello, Senior Vice President and Sr. Commercial Real Estate Lender & Team Leader at Capital Bank, a division of Chemung Canal Trust Co. 

Since its launch in 2014, CPC’s construction lending facility has been a critical source of capital to owners and developers of affordable multifamily housing projects in cities large and small across New York. Funding from CPC’s lending facility has played an integral role in the financing of 63 housing projects, representing a total of 2,840 new low- and moderate-income units throughout New York State.