AFL-CIO investment firm to commit $1B to affordable housing
Investment to finance up to 20K affordable units with projects using union labor
A housing investment firm tied to the AFL-CIO will announce this week a $1 billion commitment to financing 20,000 affordable housing units in the city over the next seven years, with all of the projects using union labor.
The AFL-CIO Housing Investment Trust expects the commitment to finance the creation of 5,000 to 7,500 affordable units, as well as the preservation of between 12,500 to 15,000 existing affordable apartments, over the next five to seven years.
In addition, City Comptroller Scott Stringer is expected to announce a $150 million investment by the New York City Retirement Systems into the AFL-CIO Housing Investment Trust, according to Crain’s.
The $5.1 billion investment firm, operated separately from the AFL-CIO itself, finances affordable housing development and preservation across the country.
The use of union labor in affordable housing projects has become an increasingly contentious topic in New York in recent months. The fate of 421a reforms passed by the state legislature this summer will likely be tied to whether construction unions and real estate interests can reach a deal on wages at projects receiving the tax exemption. [Crain’s] – Rey Mashayekhi