Key Takeaways
- • New York City Comptroller Mark Levine and trustees of four public pension funds committed $300 million to the AFL-CIO Housing Investment Trust (HIT), its largest-ever allocation from these investors.
- • The four funds will collectively become HIT's largest investor, extending a 25-year partnership.
- • The commitment is part of Levine's $4 billion plan to invest in housing construction and preservation across New York City over four years.
- • HIT's current five-borough pipeline is expected to create or preserve approximately 10,000 units, with a combined total development cost of $4.1 billion.
- • Since 2002, New York City's public pension funds have invested $583 million in the HIT, with 1-, 3-, and 5-year returns reported as keeping pace with or outperforming benchmarks.
Summary
Comptroller Mark Levine and the trustees of four of New York City's public pension funds announced a $300 million investment in the AFL-CIO Housing Investment Trust, according to the Comptroller's office. The allocation is the HIT's largest-ever from these funds and makes the four pension funds collectively its largest investor. The investment is the latest step in Levine's commitment to invest $4 billion over the next four years in housing construction and preservation across the city.
The HIT invests in the construction and preservation of homes, with a focus on workforce and affordable units, and uses 100% union construction. The Comptroller's office states that New York City's public pension funds have invested $583 million in the HIT since 2002, with 1-, 3-, and 5-year returns keeping pace with or outperforming their benchmarks. The HIT has created or preserved more than 40,000 housing units across the city, according to the release.
The HIT's current project pipeline in the five boroughs is expected to create or preserve approximately 10,000 units in the coming years, with a combined total development cost of $4.1 billion. Several projects are expected to begin later this year. The Comptroller's Housing Investment Initiative focuses on financing new mixed-income and affordable housing, preserving existing affordable housing before it is lost, and supporting office-to-residential conversions.
Levine said the HIT has a proven record of generating strong returns, jobs and homes. HIT CEO and CIO Chang Suh described the investment as common sense investing that has worked for decades for the trust. Manhattan Borough President Brad Hoylman-Sigal said the partnership would help create or preserve approximately 10,000 homes over five years.
The commitment involves trustees from the Teachers' Retirement System, NYCERS, the Police Pension Fund and the Fire Pension Fund, including representatives of the mayor's office, city officials, borough presidents, and several labor unions.
The HIT invests in the construction and preservation of homes, with a focus on workforce and affordable units, and uses 100% union construction. The Comptroller's office states that New York City's public pension funds have invested $583 million in the HIT since 2002, with 1-, 3-, and 5-year returns keeping pace with or outperforming their benchmarks. The HIT has created or preserved more than 40,000 housing units across the city, according to the release.
The HIT's current project pipeline in the five boroughs is expected to create or preserve approximately 10,000 units in the coming years, with a combined total development cost of $4.1 billion. Several projects are expected to begin later this year. The Comptroller's Housing Investment Initiative focuses on financing new mixed-income and affordable housing, preserving existing affordable housing before it is lost, and supporting office-to-residential conversions.
Levine said the HIT has a proven record of generating strong returns, jobs and homes. HIT CEO and CIO Chang Suh described the investment as common sense investing that has worked for decades for the trust. Manhattan Borough President Brad Hoylman-Sigal said the partnership would help create or preserve approximately 10,000 homes over five years.
The commitment involves trustees from the Teachers' Retirement System, NYCERS, the Police Pension Fund and the Fire Pension Fund, including representatives of the mayor's office, city officials, borough presidents, and several labor unions.
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