FT. LAUDERDALE, Fla., July 14 /PRNewswire/ -- Proceeds from a recent New York City Housing Development Corporation (HDC) bond deal are financing much-needed capital improvements to New York City affordable rental housing units. The innovative transaction is one of the nation's largest tax credit bond deals and incorporates a mixture of public and private financing sources. This includes federal funds allocated to the New York City Housing Authority (NYCHA), the current owner of the units, under the American Recovery and Reinvestment Act (ARRA). The effort also enables the Department of Housing and Urban Development (HUD) to include the buildings in a federal subsidy program.
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The CRA Qualified Investment Fund (Ticker: CRAIX), a market-rate, community development bond fund, purchased the sole taxable series of the deal. Signature Bank in New York City was allocated the investment as part of its commitment to help low-income communities and families under the Community Reinvestment Act.
"This agreement is meaningful because it positively impacts New York City by significantly advancing public housing efforts and by creating jobs," said Michael Schwartz, Vice President, and Director of Community Development for Signature Bank. "Through the CRA Qualified Investment Fund, we are making a direct improvement right in our own community."
The transaction is expected to generate more than $400 million for 21 public housing developments and will enable NYCHA to access subsidies from HUD. The outcome provides significant benefits to the public housing authorities' fiscal health and to protect New York City's affordable rental housing stock. It represents a great illustration of the public and private sector working together towards a common goal.
"We are so proud of this transaction and HDC's ability to access capital to strengthen our communities and to finance the creation and preservation of affordable housing within the five boroughs of New York City," said Richard Froehlich, Executive Vice President for Capital Markets & General Counsel, New York City Housing Development Corporation. "We greatly appreciate the efforts of all the participants, partners and investors who played a role in the execution of this epic endeavor."
"We are thrilled to have participated in this extraordinary deal," said Barbara VanScoy, Senior Portfolio Manager of the CRA Qualified Investment Fund. "These improvements will make a dramatic impact for the residing family's long term quality of life."
About Community Capital Management and the CRA Qualified Investment Fund
Community Capital Management is a Fort Lauderdale-based SEC-registered investment adviser. The firm was founded in 1998 by Barbara VanScoy and Todd Cohen to provide fixed income investment services to institutional investors. Its clients include public funds, foundations, financial institutions, faith-based investors, and mission-related investors. The CRA Qualified Investment Fund was launched in 1999 and has grown to include investments from more than 300 banks/thrifts and other types of investors interested in its community development strategy. Community Capital Management manages over $1 billion in assets and offers institutional investors its investment strategy via a separate account or a mutual fund. For additional information, please contact Jamie Horwitz at 877.272.1977 or visit www.ccmfixedincome.com.
Investing involves risk including the loss of principal. Carefully consider the risks, investment objectives, charges and expenses of the Fund before investing. The prospectus contains this and other important information. Call 866-202-3573 for a prospectus. Please read the prospectus carefully before investing. As of 6/30/10, the New York City Housing Development Corporation Multi-Family Housing Revenue Bonds represented 0.21% of the fund's assets.
The CRA Qualified Investment Fund is distributed by SEI Investments Distribution Co. (SIDCO) which is not affiliated with Community Capital Management or any other affiliate.
About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service commercial bank with 23 private client offices located in the New York metropolitan area, serving the needs of privately owned businesses, their owners and senior managers through dozens of private client groups. The Bank offers a wide variety of business and personal banking products and services as well as investment, brokerage, asset management and insurance products and services through its subsidiary, Signature Securities Group Corporation, a licensed broker-dealer, investment adviser and member FINRA/SIPC. Signature Bank's 23 offices are located throughout the metropolitan New York area. For more information, please visit www.signatureny.com.
About New York City Housing Development Corporation
The New York City Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family affordable housing throughout the five boroughs of New York City. Our programs are designed to meet the wide-range of affordable housing needs of the City's economically diverse population.
About New York City Housing Authority
The New York City Housing Authority (NYCHA) provides decent and affordable housing in a safe and secure living environment for low and moderate-income residents throughout the five boroughs. To fulfill this mission, NYCHA must preserve its aging housing stock through timely maintenance and modernization of its developments.
SOURCE Community Capital Management
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