Loan Facility Launched for Affordable Housing Development

Cestero: “Affordable homeownership has often helped to lay the foundation for stability and subsequent revitalization in underserved communities.”

NEW YORK CITY—The Community Preservation Corp. and Goldman Sachs have announced the creation of a $70 million loan facility to finance projects that create opportunities for affordable home ownership for moderate-and middle-income households here.

The facility will finance construction loans for developers who receive subsidies from the NYC Dept. of Housing Preservation and Development for the construction and rehabilitation of up to 350 affordable home ownership units over the next 18 months throughout the city.

The majority of the homes are located in the Bronx and Brooklyn—which have the second and fourth lowest rates for homeownership of any county in the United States, respectively—and include a mix of one- to three-family homes and small apartment buildings. The facility is financed with 30% of its capital from CPC and the remaining 70% from Goldman Sachs.