NYC invests $60m to preserve 35,000 rental units

Mayor Eric Adams, Comptroller Brad Lander, and Public Advocate Jumaane Williams, along with trustees of the New York City Employees’ Retirement System (NYCERS), celebrated a landmark $60 million investment aimed at preserving 35,000 rent-stabilized housing units across New York City.

The investment, made in the wake of the collapse of Signature Bank last spring, marks the largest single investment by NYCERS in safeguarding the city’s affordable housing stock.

The initiative, spearheaded by Community Stabilization Partners—a joint venture led by Community Preservation Corporation (CPC), Related Fund Management, and Neighborhood Restore HDFC—has been hailed as a critical move to stabilize and protect vital housing for New Yorkers.

Mayor Eric Adams expressed pride in the initiative, stating, “Today, we are proud to announce a $60 million investment from our NYCERS pension fund that will go toward preserving 35,000 units of affordable housing. This housing is critical to making our city more affordable and livable for working-class New Yorkers.”

Comptroller Brad Lander emphasized the importance of the investment in expanding and protecting the city’s affordable housing supply. “Expanding and protecting our affordable housing supply through sound investment decisions is a major priority of my office,” said Lander. “This investment is a shining example of the creative and prudent investments we can make to preserve existing housing that we simply cannot afford to lose.”

Public Advocate Jumaane Williams echoed these sentiments, emphasizing the necessity of investing in preservation to address the housing and homelessness crisis. “Any serious affordable housing plan has to heavily invest in preservation,” Williams stated. “This historic investment will help provide both financial security and housing stability for New Yorkers.”

The $60 million investment by NYCERS represents a 25 percent partnership in Community Stabilization Partners, which acquired a 5 percent equity interest in Signature Bank’s rent-stabilized loan portfolio. The portfolio comprises approximately 1,140 buildings and 35,000 units, with over 80 percent under rent regulation, making it a crucial component of New York City’s housing infrastructure.

Since Signature Bank’s collapse in March 2023, the Federal Deposit Insurance Corporation (FDIC) has overseen the bank’s real estate loans, which included a significant portion of New York City’s rent-stabilized housing. Community Preservation Corporation, Related Fund Management, and Neighborhood Restore partnered to create Community Stabilization Partners in response to this crisis.

“This investment is part of our commitment to securing the future of these properties and ensuring that New Yorkers have access to safe and affordable housing,” said Adolfo Carrión Jr., New York City Housing Preservation Development Commissioner.

The investment is part of NYCERS’ Economically Targeted Investment program, managed by the New York City Comptroller Office’s Bureau of Asset Management, aimed at achieving strong returns while preserving and expanding the city’s rent-regulated housing.

Community Preservation Corporation CEO Rafael E. Cestero praised the partnership, stating, “We are proud to welcome this important investment by the Comptroller and NYCERS alongside our partner Related Fund Management, which will help preserve the long-term stability of this critical piece of New York City’s affordable housing stock.”

The initiative has received broad support from community organizations and advocates, including the Association for Neighborhood and Housing Development (ANHD). Barika Williams, Executive Director of ANHD, emphasized the importance of the investment in stabilizing rent-regulated housing units.

The investment marks a significant step forward in addressing New York City’s housing crisis and ensuring that affordable housing remains accessible for its residents.