New York City Comptroller William C. Thompson, Jr. on behalf of the New York City Employees’ Retirement System, today announced the purchase of a $960,000 permanent loan for a disabled youth residence in Williamsburg, Brooklyn. The investment is part of the city pension funds’ Economically Targeted Investments (ETI) program, which targets New York City’s low-, moderate- and middle-income neighborhoods and populations.

The Community Preservation Corporation (CPC) provided the construction loan, which converted the former rectory at 259 North 5 th Street into a wheelchair accessible, 10-room residence for young adults, called the Little John Residence.

Financing for the project is part of a joint CPC and Pension Fund, multi-family, affordable housing program whereby NYCERS makes a commitment at the start of construction to purchase a permanent loan, which is then originated by CPC and sold to the Fund after construction concludes. The Fund’s permanent financing commitment ensures that construction goes forward.

“This is an example of the rewards of Economically Targeted Investing,” Thompson said. “It's an excellent, sound investment that provides a market rate-of-return to the beneficiaries and makes a significant difference in the lives of New York City residents, in this case physically and developmentally disabled youth.”

The residence is an Intermediate Care Facility certified by the New York State Office of Mental Retardation/Developmental Disabilities and operated by the Mercy Home Organization of the Religious Sisters of Mercy. The facility offers enhanced clinical care, medical care and supervision that are otherwise not provided in Community homes.

"This is an example of how carefully executed and targeted investments can do well for New York City pensioners while doing good for the people of New York," said City Finance Commissioner Martha E. Stark, NYCERS’ Chair of the Board of Trustees.

"This is another great example of NYCERS commitment to invest in projects that improve quality of life for many different populations across New York City,” said NYCERS trustee and New York City Public Advocate Betsy Gotbaum. “Diversifying the pension portfolio by investing in resources that help out the city's vulnerable populations and neighborhoods is a smart strategy for elevating the future value of the city and strengthening the pension fund."

CPC President Michael D. Lappin added: “CPC is proud to partner once again with the New York City Employees' Retirement System to create such worthwhile housing. This investment is part of a $477 million investment program that CPC has with the several City pension funds. This residence will benefit both those who live in it, while it further strengthens the Williamsburg community as a whole."

“This is a wise and worthwhile investment that should make every City employee proud to be a NYCERS contributor,” said trustee and Teamsters Local 237 President Carl Haynes. “Projects such as this one allows Labor to participate in community development in profound and meaningful way.”

New housing-related investments made or committed by the pension funds’ ETI program totaled close to $220 million in fiscal year 2003. As of December 31, 2003, the aggregate total of investments and commitments for all of the programs was more than $1.3 billion.

These investments, in addition to supporting the renovation, new construction or financing of affordable housing and small retail spaces, helped create childcare facilities and senior citizen centers in low- and moderate-income areas as well as thousands of construction jobs.

“I am committed to expanding these types of investments in NYC's communities in the areas of housing and economic development,” Thompson said.

Serving with Thompson, Stark, Gotbaum and Haynes on the NYCERS board are: Borough Presidents C. Virginia Fields (Manhattan), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), Helen Marshall (Queens), and James Molinaro (Staten Island); Lillian Roberts, Executive Director of District Council 37, AFSCME; and, Roger Toussaint, President, TWU-Local 100.

###