The trustees of the New York City Employees’ Retirement System (NYCERS), along with New York City Comptroller Brad Lander, Mayor Eric Adams, Public Advocate Jumaane Williams, and others, have announced a $60 million investment to preserve rent-stabilized housing units that were affected by the unexpected collapse of Signature Bank last spring.
According to a news release, the investment was made by Community Stabilization Partners, a joint venture run by Related Fund Management (RFM) and Community Preservation Corporation (CPC).
Both the stabilization of much-needed affordable housing and competitive returns for retirees will be advanced by the investment, which will protect the greatest number of rent-stabilized housing of any investment in NYCERS history.
We simply cannot afford to lose the existing housing that we have, and today’s announcement exemplifies the kind of inventive and wise investments that can help us do just that, according to Comptroller Lander.
Along with the trustees of NYCERS, my administration is committed to making prudent investment decisions in order to preserve and increase the availability of affordable housing.
Preserving the 35,000 rental apartments in the Signature portfolio, which were at danger after the bank’s collapse, required a tremendous collaborative effort, of which we are honored to have been a part.
A large number of New York City rent-stabilized properties were among the real estate debts held by the defunct Signature Bank, which was placed under the receivership of the Federal Deposit Insurance Corporation (FDIC) upon its failure in March 2023.
The FDIC served as receiver for 95% of Signature Bank’s rent-stabilized loan portfolio until December 2023, when Community Stabilization Partners bought 5% of the ownership.
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Roughly three percent of New York City’s total rent-regulated housing stock is located in this portfolio, which comprises about 1,140 buildings and thirty-five thousand units, of which more than eighty percent are rent-regulated.
The NYCERS retirement system is now a 25% stakeholder in Community Stabilization Partners thanks to the $60 million investment, which was approved by the board in March 2024. In the city’s rental apartment market, 17 real estate fund managers have amassed about $700 million in investments, including today’s investment.
