Enterprise Invests $4.5 Million through Opportunity Zones Fund; CPC Invests $9.85 million for Construction and Permanent Financing
SCHENECTADY, N.Y. – Today, Hudson Partners Development, Enterprise Community Partners (Enterprise) and The Community Preservation Corporation (CPC) announced the start of construction on Reserve at Towpath Trail, an 88-unit multifamily development in Schenectady, N.Y. that will provide workforce housing in a market with limited affordable options. Currently vacant land which Hudson Partners Development purchased from CPC in 2016, the development will consist of four freestanding buildings with 22 apartments each.
Enterprise is investing $4.5 million through its Opportunity Zones fund, and CPC is providing $9.85 million in construction and permanent financing. A partnership with Hudson Partners Development and the Schenectady County Metroplex Development Authority (Metroplex), this deal is also the first to incorporate Enterprise’s new Opportunity Zones Fund Evaluation Framework for assessing and measuring impact.
More than half of Towpath’s 88 units will be affordable for renters who earn below 80% of the area median income. The new homes will provide affordable options for renters in a capital-constrained market with aging homes and few quality, affordable rental options. Towpath will support the continued growth of Schenectady, which has started to experience an economic revitalization through a mix of growing economic diversity, new jobs and local stewardship and investments supported by Metroplex. Construction of Towpath is scheduled to be completed in 2022.
“Reserve at Towpath Trail will be a fantastic addition to the community, and Enterprise is proud to bring impact-oriented investors together with a local development team to make it happen,” said Julia Shin, vice president and fund manager for Enterprise’s Opportunity Zones Funds.
“Hudson Partners Development is proud to help bring quality, affordable homes to Schenectady,” said Seth Meltzer, principal of Hudson Partners Development. “Reserve at Towpath Trail also underscores the positive social impact that Opportunity Zones can deliver when harnessed by, and paired with, committed impact investors.”
“At a time when the long-term impact from the pandemic has increased housing insecurity for many New Yorkers, especially those most in need of affordable housing opportunities, CPC’s mission of investing in impactful housing projects is more important than ever,” said Patrick Miller, Neighborhood Mortgage Officer, The Community Preservation Corporation. “Reserve at Towpath Trail will bring much needed affordable rental housing to the Schenectady community, and will be an anchor for further growth and positive investments. My thanks to Hudson Partners Development, Enterprise, and the County Metroplex Development Authority for their partnership and dedication.”
Towpath’s social impact will be monitored through Enterprise’s Opportunity Fund Evaluation Framework, which will launch publicly later this year. Enterprise developed the Framework due to the lack of national reporting standards for Opportunity Zone investments. It provides a qualitative way to track and measure impact and will be available as a free online tool to help other socially conscious investors and fund managers make responsible Opportunity Zone investments.
“When community impact is a primary consideration, Opportunity Zone investments can be powerful vehicles for creating and preserving affordable homes that anchor neighborhoods for the long term,” said Lori Chatman, president of Enterprise Community Loan Fund, Enterprise’s Community Development Financial Institution. “The Opportunity Fund Evaluation Framework will ensure investor dollars are used in the right ways.”
About Enterprise Community Partners
Enterprise is a national nonprofit on a mission to make home and community places of pride, power and belonging for all. To make that possible, we operate the only organization designed to address America’s affordable housing crisis from every angle: we develop and deploy programs and support community organizations on the ground; we advocate for policy on a nonpartisan basis at every level of government; we invest capital to build and preserve rental homes people can afford; and we own, operate and provide resident services for affordable communities. All so that people not only make rent, they build futures. With this end-to-end approach, 40 years of experience and thousands of local partners, Enterprise has built and preserved 793,000 homes, invested $61 billion in communities and changed millions of lives. Join us at EnterpriseCommunity.org.
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. The company, which currently carries a AA- issuer rating from S&P Global, provides a full suite of capital products through its construction lending, Agency lending, and equity investing platforms. Since inception, CPC has provided more than $12 billion to finance nearly 220,000 units of housing, and is currently one of the largest Community Development Financial Institutions in the country dedicated to investing in multifamily housing. Visit CPC at communityp.com, and on Facebook, Twitter and LinkedIn