New York City Pension Boosts Affordable Housing With $150 Million Investment

The five New York City pension systems on Thursday announced they would be collectively investing $150 million in the AFL-CIO Housing Investment Trust (HIT).

The investment will “create and maintain” about 20,000 affordable housing units in the city, and will generate safe returns, according to city Comptroller Scott Stringer.

More from a release:

New York’s investment is part of their Economically Targeted Investments (ETI) program that generates risk-adjusted market rates-of-returns while promoting economic development within the five Boroughs. ETIs are designed to address market inefficiencies by providing capital or liquidity to under-served communities and populations across the City.

“When it comes to promoting affordable housing and generating new jobs in our City, Economically Targeted Investments are a crucially-important tool,” said New York City Comptroller Scott M. Stringer, who is a trustee and investment advisor to the five pension systems, adding that working with the HIT is “a fiscally smart marriage of resources and housing policy. I’m pleased that the New York City Pension Funds will play a pivotal role in this effort.”

Moreover, Comptroller Stringer said the HIT’s investment strategies have demonstrated that affordable housing can be created, while generating safe returns on pension investments. “That’s why I’m happy to continue the New York City Pension Funds’ long and proud history with the HIT by contributing an additional $150 million to the AFL-CIO’s Housing Investment Trust – as part of their commitment to invest $1 billion in New York’s affordable, union-built housing over the next seven years,” he said.

This is far from the first time the city’s pension funds have invested with HIT. Since 2002, the five funds have together invested nearly $800 million in various HIT initiatives.

Photo by Tim (Timothy) Pearce via Flickr CC License