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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.