BANK OF AMERICA JOINS MULTIFAMILY INVESTMENT PROGRAM

On behalf of the New York City Employees Retirement System (NYCERS) and the New York City Police Pension Fund, Subchapter Two, Comptroller William C. Thompson, Jr. has signed an agreement adding Bank of America to the Public/Private Apartment Rehabilitation Program (PPAR) and increasing the allocation to PPAR by $70 million.

PPAR provides financing for multifamily rehabilitation and new construction in low- and moderate- income neighborhoods. Under this program, the Community Preservation Corporation (CPC), JPMorgan Chase and now Bank of America, provide construction loans for affordable housing for which the Systems commit to provide the “take-out” financing (long-term permanent financing) at the start of construction.  Bank of America’s target allocation is $70 million ($50 million from NYCERS and $20 million from Police), bringing the total allocated to PPAR to $936 million. 

"PPAR has had a significant impact on affordable housing in the City and I am pleased to expand its scope by adding Bank of America as one of our lenders," Comptroller Thompson said. "Bank of America has an impressive track record of community development in New York City and can only enhance the impact of PPAR. We look forward to a successful working relationship."

“Participation in PPAR underscores our commitment to the continued development of affordable housing and economic development facilities for New Yorkers,” said Philip Grossman, Bank of America Executive Vice President, Community Development Banking. “We are excited that we can now offer this significant permanent financing capability specifically designed for the New York market and are proud to partner with the City of New York in making more affordable housing and commercial facilities available to our inner city residents.”

Since the inception of the program, PPAR has invested $365 million in New York City for 20,500 units of housing and has outstanding commitments for $241 million, representing 5,650 units.

The selection of Bank of America was based on a solicitation for proposals conducted by the Comptroller’s Office. Lenders to affordable multifamily housing developers and owners can apply at any time to qualify for the PPAR program.  The target lending area is the five boroughs of New York City and the PPAR is a standardized investment program.  Details on how to apply are posted on the Comptroller’s website, www.comptroller.nyc.gov.

Serving with Thompson on the New York City Employees’ Retirement System board are: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents C. Virginia Fields (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn) Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Carroll (Carl) Haynes, President, International Brotherhood of Teamsters, Local 237.

In addition to Thompson, trustees on the New York City Police Pension Fund are: Mayor Michael Bloomberg; Commissioner; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edwin Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

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