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NEW YORK CITY-The AFL-CIO Housing Investment Trust and AFL-CIO Building Investment Trust have launched Phase II of an affordable housing/economic development initiative. They have also completed the $840-million first phase of the post-9/11 New York City Community Investment Initiative a year ahead of schedule.
The $500-million second phase will focus on financing the development and rehabilitation of housing and commercial real estate in the five boroughs. It is expected to result in an estimated $1 billion of total development over the next five years, according to AFL-CIO president John Sweeney.
Elements of the second phase include $250 million in financing for the production and rehabilitation of multifamily housing in addition to the preservation of existing affordable product. Another $250 million will go toward commercial real estate. This will focus on identifying equity investment opportunities in new market-rate housing or mixed-use developments.
HIT investments under the first phase of NYCCII have included Penn South Amalgamated Houses, Seward Park Cooperative and other historic Mitchell-Lama multifamily housing cooperatives. BIT's equity investments went toward the construction of Hudson Crossing, the Opal-Kew Gardens in Queens, the Urban Glass House in Soho, Queens Family Courthouse and One River Terrace.
As reported by GlobeSt.com in 2003, the BIT launched a National Apartment Initiative, which was a $400-million equity and participating debt initiative for apartment investments nationwide. Officials expected that investments would generate up to $1 billion in investment activity by financing as many as 25 to 30 apartment projects. Investors in the trusts, which are primarily Taft-Hartley and public employee pension funds, include the pension funds of New York City employees, teachers, police and firefighters.
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