NEW YORK: New York City Mayor Eric Adams, New York City Housing Preservation Development (HPD) Commissioner Adolfo Carrión Jr., and New York City Housing Development Corporation (HDC) President Eric Enderlin today announced a new initiative to provide up to $50 million to help Minority Business Enterprises (MBE) developers overcome historical financial barriers and fully participate in the development of critically needed affordable housing for New Yorkers. Established in partnership with the Urban Investment Group at Goldman Sachs and the Community Preservation Corporation (CPC) the new “New York City Minority Business Enterprise Guaranty Facility” is expected to enable as much as $500 million in private construction lending to MBEs.
Today’s announcement builds on Mayor Adams’ commitment to fight the housing crisis as he continues calls made in his State of the City Address for Albany to deliver a housing package this session that will help create the affordable homes New Yorkers need and deserve.
Mayor adams said that “For too long, Minority Business Enterprises have faced systemic barriers and restrictive financial requirements in our construction sector that have prevented them from being a part of the solution to the affordable housing crisis.
“Today’s $50 million initiative is a major step forward towards our goal of building a fairer, more equitable New York City while creating housing, jobs, and opportunity for all. As we said in this year’s State of the City address: this city and this nation are facing a massive housing crisis. To face this moment, we must be a ‘City of Yes’ — ‘yes’ in my backyard, ‘yes’ on my block, ‘yes’ in my city, and ‘yes’ to our MBEs ,” he added
“Minority Business Enterprises are critical drivers of affordable housing development across the five boroughs,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “This new initiative is a powerful way to combat our housing crisis while addressing the historical inequities and gaps in capital for MBE businesses. I am excited to see this unprecedented investment bolster diverse businesses and help us forge a clear path for equitable growth in our city.”
“In order for New York City to stay competitive on a global stage, we must ensure we’re building the affordable housing we need, and minority-housing development partners are a key part of that path forward,” said HPD Commissioner Carrión. “This new initiative, in partnership with Goldman Sachs, CPC, and HDC, is a major step in the right direction, removing barriers that will allow minority developers to grow, stay competitive, and build more housing — just as our city needs it the most.”
“With the launch of the MBE Guaranty Facility, the city is making strides to address barriers that have historically limited minority-owned business enterprises from participating in the development of affordable housing,” said HDC President Enderlin. “HDC is proud to partner with HPD, CPC, and Goldman Sachs to provide more equitable access to low-cost capital through the facility and promote greater opportunity for our MBE development partners to succeed.”
“In establishing the MBE Guaranty Facility, New York City is taking action against entrenched barriers to entry to this industry that have their roots in a history of structural racism,” said New York City Executive Director for Housing Leila Bozorg. “I’m proud to see HPD and HDC partner with Goldman Sachs and the Community Preservation Corporation on this $50 million initiative, which not only proactively removes obstacles that have prevented minority-owned firms from taking part in the creation of affordable housing, but that will stimulate even greater opportunities and access to capital going forward.”
