The Real Deal New York

Nonprofit proposes $1B state fund for affordable housing

Developer would receive credit enhancement or loans
November 26, 2014 02:07PM

The nonprofit New York Housing Conference has proposed that New York Governor Andrew Cuomo create a $1 billion fund for affordable-housing capital.

The fund, under the aegis of the state Homes and Community Renewal Agency, would offer credit enhancement or loans to developers. The fund would serve as a one-time expense, but all low-interest loans could go back into the fund for upcoming affordable-housing investments.

“We feel really strongly that there is an affordable-housing crisis, and we have to think more broadly about how it impacts our economy,” Rachel Fee of the New York Housing Conference told Crain’s. “The capital fund could be used to build on existing [state and local] affordable-housing programs, which leverage private investment.”

Blackstone Group exec William Murrow serves as chair of the Homes and Community Renewal Agency.

Cuomo has vowed to spend a $5.1 billion windfall from settlements with financial institutions and banks as a one-time expenditure. [Crain’s]Mark Maurer