New York City Comptroller Brad Lander, New York City Mayor Eric Adams, Public Advocate Jumaane Williams, and the trustees of the New York City Employees’ Retirement System (NYCERS) announced an investment of up to $60 million to preserve rent-stabilized housing units impacted by the sudden collapse of Signature Bank last spring.
The investment was made by Community Stabilization Partners, a joint venture led by Community Preservation Corporation (CPC) and Related Fund Management (RFM), according to a news release.
The investment will preserve the largest amount of rent-stabilized housing of any investment in NYCERS history and will both advance the stabilization of much-needed affordable housing and deliver competitive returns for retirees.
“Today’s announcement is a shining example of creative and prudent investments we can make to preserve existing housing that we simply cannot afford to lose,” said Comptroller Lander. “Protecting and expanding our affordable housing supply through sound investment decisions is a major priority of my office, in partnership with NYCERS trustees... the 35,000 rental units in the Signature portfolio could have faced grave risks as a result of the bank’s collapse – preserving them is an enormous team effort, and we are proud to be part of it.”
When Signature Bank collapsed in March 2023, the Federal Deposit Insurance Corporation (FDIC) was appointed receiver for its portfolio of real estate loans, which included a substantial concentration of rent-stabilized housing in New York City.
In December 2023, Community Stabilization Partners, purchased a 5% equity interest in Signature Bank’s rent-stabilized loan portfolio, with the remaining 95% held by the FDIC as receiver. The portfolio totals approximately 1,140 buildings and 35,000 units with over 80% rent regulated units and representing approximately 3% of New York City’s entire rent regulated housing stock.
Through the $60 million investment — which NYCERS voted on in March 2024 — the retirement system has become a 25% partner in Community Stabilization Partners. Including today’s investment, NYCERS has invested nearly $700 million in rental apartments in the city, with 17 real estate fund managers.
