Victims of Hurricane Sandy are about to see relief from an unexpected source: the city’s four largest pension funds. City Comptroller John Liu announced this week that the funds have voted to invest some $500 million into areas ravaged by the storm through newly formed partnerships with the Related Companies and Hudson Cos., GlobeSt. reported.
Related and Hudson will receive $300 million and $200 million, respectively, from the New York City Pension Funds, which will cover the projects’ equity. The project will also utilize approximately $1 billion of additional loans toward the total $1.5 billion in Sandy-related building projects.
The plan is expected to create or restore 3,000 units of housing and 150,000 to 200,000 square feet of commercial space over the next three years. In the coming months, money will begin to be invested in repairs and construction of mostly affordable housing.
“The $1.5 billion rebuilding program will become the bricks and mortar neighborhoods need to rebuild from Sandy’s wrath,” Liu said in a statement. “This investment demonstrates the steadfast commitment of city employees and retirees to pursue opportunities that are not only expected to deliver strong returns, but also to generate collateral benefits for the communities they call home.” [GlobeSt.] –Christophe