Equity investment in the Billion Dollar Promise, in which financial institutions invest directly in the housing complexes through the Low-Income Housing Tax Credit program, came from “a host of” corporations, said Enterprise Executive Vice President Bill Frey. Those included companies such as JPMorgan Chase & Co., Citi and HSBC Bank, said Frey. In addition, there were major foundations that served as partners, and a number of corporations provided loans through Enterprise’s community loan fund or through other partners, he said.
Surprisingly, his organization was able to raise capital through the end of last year, Frey said. Asked why the credit crisis did not present an obstacle, Frey estimated that Enterprise’s “very long track record” in affordable housing financing was key. “We are able to invest the capital well,” he said.
Marc Jahr, president of the city’s Housing Development Corporation said in the administration press release that the initiative played “a pivotal role” in developing “permanent affordable housing…particularly during a time when a premium was placed on the development of luxury housing.”
From the launch of the New Housing Marketplace Plan through Jan. 2009, the city has financed 84,903 units, HPD spokeswoman Miriam Solis said.
The Billion Dollar Promise project resulted in the construction of more than 12,000 new units and the preservation of about 4,000 units in New York City. One partner was the Fordham Bedford Housing Corporation – a Bronx community developer that manages about 100 buildings with nearly 3,000 apartments – with which Enterprise built Serviam Gardens, a complex for low-income seniors. Another apartment building constructed under the “Promise” initiative was Jacob’s Place, an environmentally friendly building for low-income families that opened a little over a year ago. – RN
