New York Life’s Impact Investment Initiative commits $50m to affordable housing project

Written by Michael Griffiths

22/07/2021

New York Life has announced a $50m investment to support the preservation of affordable housing rental properties throughout the US, via an equity investment with IMPACT Community Capital.

This is the latest investment under the mutual life insurer’s $1bn impact investment initiative announced in April earlier this year.

The initiative is focused on addressing the racial wealth gap by investing in underserved and undercapitalised communities over the next three years, New York Life has stated, with a focus on supporting small businesses, affordable housing, and community development.

The investment with IMPACT Community Capital is expected to provide short-term bridge loans to borrowers and owners of affordable housing, seeking to preserve the properties’ affordability status. The underlying properties will be nearing the expiration of affordable rent restrictions, which place the properties at risk of becoming market-rate rentals.

“This investment affords us the opportunity to partner with an established market participant and make an immediate positive impact in the affordable housing sector,” New York Life managing director and head of impact investments, Martin King.

The latest move follows New York Life’s initial impact investment initiative commitment of $150m to Fairview Capital in support of diverse and emerging fund managers, as well as hundreds of small businesses.

King added: “New York Life’s impact investment initiative is focused on delivering meaningful societal impacts and generating market returns to help build and sustain positive economic outcomes in underserved and undercapitalised communities over the long term. As an asset class, affordable housing has a strong property performance history.”

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