CPC and NYS Common Retirement Fund Announce $710 Million Funding Agreement to Finance Housing Across New York State

Funding Will Significantly Increase CPC’s Permanent Lending Capacity for Low- and Moderate-Income Multifamily Housing Projects

Over Last 25 Years, CPC and the Fund Have Invested $741 Million in 471 Housing Projects with 18,515 Units

New York, NY, November 28, 2016 – The Community Preservation Corporation (CPC), a leading nonprofit affordable housing and community revitalization finance company, announces that the New York State Common Retirement Fund (the Fund) has agreed to provide $710 million as part of a revolving facility to finance multifamily housing developments for low- and moderate-income residents across New York State.

The agreement with the Fund, which is administered by New York State Comptroller Thomas P. DiNapoli, is nearly quadruple the 2014 funding agreement of $200 million and will help CPC and the Comptroller achieve their shared mission of investing in stable housing that strengthens and revitalizes underserved New York communities. Since 1991, CPC has invested $741 million from the Fund to provide permanent financing to 471 housing developments with a total of more than 18,515 units.

“Over the last 25 years, the Fund has placed their trust in our ability to lend at scale and put their investment to work in neighborhoods where it will do the most good,” said Rafael E. Cestero, President and CEO of CPC. “The longstanding partnership between CPC and the CRF has helped provide capital for housing projects that have transformed and stabilized communities, and given tens of thousands of New Yorkers access to new housing opportunities. This funding agreement significantly increases our lending capacity and ability to have a greater impact in communities large and small throughout the state. My thanks to Comptroller DiNapoli and his team at the CRF and I look forward to many more years of working together to invest in our state’s housing needs.”

“The Community Preservation Corporation has been a partner and trailblazer in the creation of affordable housing and community revitalization,” said State Comptroller Thomas P. DiNapoli. “As trustee of the state pension fund, ensuring sound investments that provide retirement security for our more than one million members, retirees and their beneficiaries is my priority. Partnering with CPC has once again delivered a win-win for the state pension fund and for New York families.”

The Fund is the third largest public pension plan in the country. For 25 years, the Fund and CPC have been partners in a shared mission to help revitalize underserved New York communities by investing in low- and moderate-income housing projects while providing a secure return for the fund.

With the agreement in place, CPC has more than two dozen projects totaling 1,480+ units within its active lending pipeline throughout Upstate New York that will be some of the first to benefit from investment from the Fund. These projects include:

270 Niagara Street, Buffalo, NY

  • $500,000 CRF permanent financing
  • 48 units, Low-Income Affordable Housing

242 Broadway, Schenectady, NY

  • $7.35 million CRF permanent financing
  • 39 units, Downtown Revitalization

390 South Avenue, Rochester, NY

  • $625,000 CRF permanent financing
  • 60 units, Low-Income Supportive Housing

Route 22, Pawling, NY

  • $3.2 million CRF permanent financing
  • 81 units, Low-Income Senior Citizen Housing

110 Marcellus Street, Syracuse

  • $700,000 CRF permanent financing
  • 12 units, Community Revitalization

In addition to increasing CPC’s permanent lending capacity, the new agreement also allows CPC the latitude to lend to projects with a diversity of financial needs; with permanent loans as low as $250,000 and past transactions as large as $25 million. The lower loan threshold will help CPC achieve one of its core missions of providing stable capital for small building owners who may often lack access to funding for acquisition of new properties and refinancing and renovation of existing properties. Small multifamily buildings are a critical piece of New York’s housing stock, and are a haven of affordability to low- and moderate-income households throughout the state.

For housing projects financed by CPC in the State of New York, the company’s permanent loans are insured by the State of New York Mortgage Agency (SONYMA). For the Fund and CPC’s other partners that provide funding for the company’s permanent loan products, the insurance provided by SONYMA helps to ensure that their investment in a community revitalization project is a stable and predominantly risk-free one. This insurance has been critical in bringing private investment and transformative projects to underserved communities in need of new housing opportunities.

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About The Community Preservation Corporation (CPC)

Established in 1974, 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.