NYC Acquisition Fund Turns 10
The fund started as a financing tool for real estate developers facing the rising cost of land on top of a growing need for affordable housing in New York City.
By Veronica Grecu
New York—This week marked the 10-year anniversary of The New York City Acquisition Fund, a unique partnership between the City of New York, major foundations and commercial lending institutions that was conceived as a way to provide capital for affordable housing developers for land and building purchases.
The fund was originated by Enterprise Community Partners, the Starr Foundation, the New York City Department of Housing Preservation and Development (HPD), New York City Housing Development Corporation (HDC), Local Initiatives Support Corporation (LISC), the Ford Foundation, Rockefeller Foundation, MacArthur Foundation, Robin Hood Foundation, Forsyth Street Advisors.
During the last 10 years, the Fund has been instrumental in the development of more than 10,200 homes in New York City by providing $336 million in loans.
“The Fund plays a unique and valuable role in nurturing partnerships among public, private, non-profit and philanthropic organizations to provide long-term investment in our communities,” Eric Enderlin, president, HDC.
The 10-year anniversary also marked the closing of a new funding round of $135 million that will provide critical capital to create and preserve affordable housing throughout New York City.
“The New York City Acquisition Fund’s incredible success over the last 10 years has made it an irreplaceable part of the affordable housing landscape in the City, helping to make more affordable homes available to low-income families throughout the five boroughs,” said Judi Kende, vice president and New York market leader, Enterprise. “This new round of funding allows us to continue this critical work, and we look forward to seeing the Fund improve the lives of New Yorkers for the next 10 years and beyond,” she added.
Conceived to help affordable housing developers to compete with speculative real estate buyers, this financial tool will keep on offering flexible bridge loans for the acquisition of vacant sites or occupied buildings, pre-development and rehabilitation of affordable housing throughout the five boroughs.
The Fund provides loan advance rates of up to 130 percent LTV for non-profit sponsors and up to 95 percent for for-profit sponsors with a variable rate loan of approximately 5 percent, and flexible loan terms of up to two years plus extensions of up to 12 months.