Mark Levine has announced a sweeping $4 billion investment strategy aimed at expanding and preserving affordable housing across New York City, as officials look to address mounting affordability challenges and accelerate housing production.
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The newly unveiled NYC Housing Investment Initiative will commit approximately $1 billion annually over the next four years, leveraging public pension funds to finance a range of housing developments and preservation efforts throughout the five boroughs.
“Too many New Yorkers are struggling just to keep a roof over their heads,” Levine said. “Solving this crisis takes action on all fronts. We’ve advanced critical zoning changes, but without financing, housing doesn’t get built. The NYC Housing Investment Initiative is about closing that gap, delivering the homes New Yorkers need, and making sound investments for the New York City retirement systems.”
The initiative is designed to tackle the city’s housing shortage by targeting both new construction and the preservation of existing units. Key priorities include financing mixed-income and workforce housing, protecting affordable units from being lost, and supporting office-to-residential conversions to increase supply.
As part of the first round of investments, the comptroller’s office will direct $750 million through its Bureau of Asset Management for projects focused on new development, preservation and adaptive reuse.
An additional $500 million will expand the Public Private Apartment Rehabilitation (PPAR) program, a longstanding initiative supporting housing construction and rehabilitation across the city and surrounding counties. The expansion introduces a 36-month rate lock and 40-year amortization structure to support long-term affordability and financial stability.
The program will be administered by The Community Preservation Corporation, which will oversee financing and servicing activities.
The initiative will also include recommendations for further investment through the AFL-CIO Housing Investment Trust to support large-scale multifamily housing developments using union labor.
“For our members who have residency requirements, affordable housing is the single most important issue impacting their quality of life and ability to survive in this city,” said Henry A. Garrido, executive director of District Council 37 AFSCME and trustee of the NYCERS Board. “We need to put our money where our values are, and that means investing our pension dollars into workforce housing that directly benefits the very people who make this city run.”
The $4 billion commitment is expected to more than double the housing investment exposure of the city’s five public pension funds. As of the end of 2025, those funds held approximately $2.8 billion in residential investments spanning multifamily housing, senior housing, student housing and other programs.
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“Comptroller Levine’s $4 billion commitment represents a historic step in mobilizing the pension funds to address New York City’s housing crisis,” said Rafael E. Cestero, CEO of The Community Preservation Corporation. “This initiative sets a powerful model for how public capital can drive real impact by significantly expanding investment in the creation and preservation of our city’s housing stock.”
Cestero added that enhancements to the PPAR program, originally launched in 1984, will ensure it remains a critical financing tool for preserving and expanding affordable housing in the city.
The comptroller’s office noted that since the early 1990s, pension fund investments have helped create or preserve approximately 199,000 housing units. Officials emphasized that the new initiative is designed not only to address housing affordability but also to deliver strong, risk-adjusted returns for pension beneficiaries.
With housing demand continuing to outpace supply, city leaders say the initiative represents a significant step toward closing financing gaps and accelerating development across New York City.
Originally reported by New York City Comptroller Mark Levine.
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