The revolving line of credit provides construction loans for affordable housing, mixed-use and commercial properties in low- and moderate-income neighborhoods in New York City and New York State. Construction includes moderate and gut rehabilitation of buildings as well as new construction.

The Revolver is structured to provide for a five-year borrowing period, with draws down as needed by CPC. Typical construction loans have an operating cycle of 24 to 27 months. Loan principal may be borrowed, repaid and re-borrowed (hence "revolving"). Interest payments are made monthly to the Systems.

During its last fiscal year, the RLC funded $223 million in new loans. The Funds join 63 other financial institutions comprising the RLC, a major source of construction financing for affordable housing in New York. This investment complements the Funds’ existing program with CPC, where the Funds provide the long-term permanent, or “take-out”, financing for buildings rehabilitated or newly built with CPC construction financing. The combined investment by the Funds to the permanent financing program is $467 million.

“Financially, this is a sound investment for the Funds,” Thompson said. “Moreover, this investment will have a positive collateral impact on the City, which desperately needs the affordable housing that this revolving line of credit will finance. The City also will greatly benefit from the rehabilitation work, which restores apartments to livable standards and revitalizes neighborhoods.”

The Economically Targeted Investment Program handles market-rate investments directly in New York City, with a particular emphasis on affordable housing and neighborhood revitalization. ETI investments support the renovation, and/or the new construction of affordable housing and small retail spaces. These investments include financing for the creation of childcare facilities and senior citizen centers in low-and moderate-income areas and other special use facilities. Thousands of construction jobs are created in the process.

"The City of New York is committed to developing and rehabilitating affordable housing,” said Martha E. Stark, New York City Commissioner of Finance and Chair of the Board of Trustees of NYCERS and Teachers' Retirement System. “We are delighted to have this opportunity for the pension funds to make a sound financial investment that will benefit New York's working communities.”

New housing-related investments made or committed by the City’s five pension boards over the last two years total approximately $ 338 million for nearly 4,000 units of housing. As of September 30, 2003, the aggregate total of investments and commitments for all of the ETI programs was more than $1.1 billion.

The Comptroller’s Office has issued a Request for Proposals (RFP) for Debt-Based Economically Targeted Investments. The RFP seeks creative, debt-based investments that focus on the affordable housing, mixed-used properties, small-scale commercial and small business needs of New York City. Investments must address a capital gap and offer a risk-adjusted market rate of return. The RFP – which has no deadline - is posted at www.comptroller.nyc.gov.

Serving with Thompson and Stark on NYCERS are: Mayor Michael A. Bloomberg; Public Advocate Betsy Gotbaum; Borough Presidents C. Virginia Fields (Manhattan), Marty Markowitz ( Brooklyn), Adolfo Carrion (Bronx), Helen Marshall (Queens), and James Molinaro (Staten Island); Carl Haynes, President, Local 237, International Brotherhood of Teamsters; Lillian Roberts, Executive Director, District Council 37; and, Roger Toussaint, President, Transport Workers Union Local 100.

In addition to Thompson and Stark, the Teachers' Retirement System trustees are: Bloomberg; Kathleen Grimm, Deputy Chancellor, New York City Department of Education; Phillip Berry, Vice President, Colgate Palmolive Inc.; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.