New York Acquisition Fund provides an innovative mechanism to significantly increase the development and preservation of affordable housing in New York City, allowing affordable housing developers to overcome such barriers as high land and construction costs. Loans from the Fund will be made available to both for-profit and not-for-profit developers for site acquisition and predevelopment costs associated with the development of new housing, as well as the preservation of existing at-risk affordable housing projects. In addition to its $20 million commitment, CDFG contributed leadership to the structure of the Fund, in which foundations and city funds take higher risk positions, enabling the commitment of resources from the private sector. The Fund received a 2008 Innovations in American Government Award from the Harvard Kennedy School.
Deutsche Bank is the first institutional investor in the Rose Smart Growth Investment Fund (RSGF), the nation’s first real estate investment fund focused on the acquisition and greening of existing buildings. The fund was created by Jonathan Rose Companies, a multi-disciplinary planning, project management, development, acquisition, and asset management firm. The goal of the fund is to demonstrate that an environmentally conscious real estate investment strategy will yield better long-term value to both investors and low- and moderate-income communities and residents. As a model for the greening and preservation of existing affordable housing, RSGF will provide the field with a database to track the benefits of green investments.
Deutsche Bank is the agent bank for Community Preservation Corporation, a nonprofit financial intermediary born out of the economic crisis of the 1970s, when the leading New York City banks, under the leadership of David Rockefeller, committed resources to create a nonprofit to address the credit needs of multifamily buildings and reverse the trend of abandonment in low-income communities. Over its 35-year history, CPC has provided a mechanism for $7 billion to be invested in 130,000 housing units. CPC has historically served as a one-stop shop to bundle private capital, public subsidies, technical assistance and project management services to enable comprehensive moderate rehabilitation of multifamily buildings, with a particular focus on serving unsophisticated, “mom-and-pop” building owners. CDFG is working with CPC to develop a pilot Neighborhood Energy Loan Program, a partnership between financial institutions and philanthropic foundations, to aggregate $100 million in capital to enable residential property energy efficiency retrofits, thereby lowering carbon emissions and resident utility bills while improving the health and safety of multifamily buildings.