File Photo
Stringer noted that the new investment includes a first-of-its-kind infusion of millions of dollars specifically to support veterans in the five boroughs.
By Forum Staff
City Comptroller Scott Stringer and the NYC Pension Funds on Thursday announced a major new investment of $450 million to purchase and support non-predatory mortgages and support affordable housing across the five boroughs.
In addition to stocks and bonds, Stringer and the Pension Funds noted that they also invest in funds that finance affordable single-family homes as well as larger, multi-unit buildings in New York City. The investment of $450 million in pension funds will support and create tens of thousands of affordable homes and units citywide, according to Stringer.
Additionally, the new investment includes a first-of-its-kind infusion of millions of dollars specifically to support veterans in the city.
According to Stringer and the Pension Funds, the $450 million will be invested through a separately managed account with RBC Global Asset Management’s Access Capital Community Investment Strategy, which invests in non-predatory, agency-backed mortgages from both private and government affordable housing programs, such as those run by a wide variety of federal, state, and city housing and economic development agencies, Stringer noted. It includes a renewal of $300 million that had previously been invested and the addition of $150 million in new funds. The initial agreement is for three years, with the option of two three-year extensions.
“We have to work together to make New York City more affordable – and we’re taking action in innovative ways through the Pension Funds. We’re demonstrating that you can simultaneously protect the retirements of hardworking New Yorkers while mitigating one of our city’s long-term challenges. This is undoubtedly a great thing,” Stringer said. “We’re proud to have helped create and preserve over 100,000 affordable units citywide, and even more thrilled to launch a new effort to support our veterans. Through this initiative, we’re helping everyday families, adding long-term affordable housing, and strengthening our pension funds. This is going to have positive outcomes for many, many New Yorkers.”
Stringer’s Office said it expects investing in mortgages for veterans will encourage more banks to issue U.S. Department of Veterans Affairs-backed mortgages, making it easier for veterans to obtain stable housing at better rates. Approximately 210,000 veterans live in the five boroughs.
“As stewards of our pension funds, we have both fiscal and moral responsibility, which means choosing investments that serve our communities and our pensioners,” said Public Advocate Letitia James. “Our service members put their lives on the line to protect us, and we must do all we can to support them. Too often, veterans face a myriad of obstacles upon returning to civilian life, including difficulty accessing affordable housing and home ownership. By expanding this program, we not only make loans more accessible to veterans and active service members, we are making good on our commitment to serve them, just as they have served us.”
The investment is part of the Comptroller’s Office’s Economically Targeted Investments program, which seeks investments that deliver strong returns while also creating secondary benefits, such as affordable housing and good paying jobs, Stringer said. The ETI program was launched in 1984, and currently the City Pension Funds have invested nearly $2.5 billion with an additional $500 million in future commitments. These investments have financed 105,000 units of affordable housing.
