The investment will purchase and support non-predatory mortgages for everyday New York City residents, including a first-of-its-kind initiative that commits millions of dollars to support affordable housing for veterans
NYC Comptroller Scott M. Stringer and the New York City Pension Funds on Thursday announced a major new investment of $450 million to purchase and support non-predatory mortgages for everyday New Yorkers across the five boroughs, a move that is a part of the comptroller’s Economically Targeted Investment Program.
According to the comptroller’s office, the investment will effectively create tens of thousands of affordable homes and units across all five boroughs and will include a first-of-its-kind infusion of millions of dollars specifically to support veterans in New York City.
By purchasing and owning these tens of thousands of mortgages, the Pension Funds are making stable long-term investments while supplying the capital needed to encourage public and private lenders to issue more affordable housing mortgages and promote lower interest rates for potential homebuyers.
“This is going to have positive outcomes for many, many New Yorkers,” said Stringer in a statement. “Through this initiative, we’re helping everyday families, adding long-term affordable housing, and strengthening our pension funds.”
The Comptroller’s Office also expects investing in mortgages for veterans will encourage more banks to issue VA-backed mortgages, making it easier for the 210,000 or so veterans in New York City to potentially obtain stable housing at better rates.
“We have to work together to make New York City more affordable – and we’re taking action in innovative ways through the Pension Funds,” Stringer said. “We’re demonstrating that you can simultaneously protect the retirements of hardworking New Yorkers while mitigating one of our city’s long-term challenges. This is undoubtedly a great thing.”