“The loss of construction jobs is one of the worst economic impacts the pandemic is having on this big city,” he said. Chang Suh, managing director of HIT. “COVID-19 has put even more people at risk and needs affordable housing.”
“While many other sources of capital are withdrawing from putting their funds into this market, we are committed to serving as of San Francisco the first financial responder by creating union construction jobs and funding affordable places that people are proud to call home, “said Suh.” We do this while always working hard to produce competitive returns for our investors. ” new development site is called 53 Colton The city and county of of San Francisco The Department of Homeless and Supportive Housing will identify those who qualify to reside in the rental units.
“As we begin to emerge from the COVID-19 pandemic, new investments like this in San Francisco they will be crucial for our economic recovery, “he said San Francisco Mayor London N. Race. “We all know we need to build more housing, because even though rents have recently fallen, they will start to rise again as our economy recovers unless we create enough new homes to keep up with demand. By investing in housing. , not only create the homes our city needs, but we also create new, well-paid jobs that will help get our economy back on track. ”
HIT’s investment will finance part of 53 Colton’s total construction costs, according to officials’ forecasts $ 52.5 million. The site is part of a larger two-acre redevelopment plan known as 1629 Market Street, led by the United Association Local 38 Plumbers and Pipefitters. The project will include a new union hall for Local 38, market-priced housing, commercial development and a publicly accessible park.
“It’s a great project for the community and the city. It provides jobs for our construction industry members who are out of work due to the pandemic,” he said. Larry Mazzola Jr., Local 38 Business Manager and President of the San Francisco Building and Construction Trades Council.
HIT is a mutual fund that invests union capital and public pension funds in multi-family housing nationwide. In September, HIT announced it would be ready to invest up to 500 million dollars over the next five years to develop the market rate, labor force and affordable housing in the bay area. Through its Bay Area Investment Initiative, HIT plans to join forces with the public, private and nonprofit sectors to leverage up to a further 500 million dollars of investments from other sources. HIT estimates that the effort could create approximately 4,000 union construction jobs, 12,000 total jobs and 4,000 housing units in the Bay Area by 2025.
“HIT’s funding of 53 Colton is a signal to our community that the AFL-CIO HIT’s $ 1 billion Bay Area Investment Initiative is real, “he said San Francisco Member of the supervisory board Asha Safai. “At a time of economic uncertainty for our city and region, the initiative means more affordable housing and higher paying construction work for union members.”
HIT is not new to the Bay Area, according to Ted Chandler, the chief executive officer of HIT’s regional operations. Before announcing its initiative in September, the company had already invested more than $ 396 million in 19 projects across the Bay Area since HIT’s inception in 1984, producing 4,500 construction jobs and more than 3,200 housing units to date, he said.
“We look forward to doing much more to serve the workers of this city and region by creating many much needed high-paying jobs and affordable housing,” Chandler said. 53 Colton will be developed by Strada Investment Group of San Francisco, And of San Francisco Community Housing Partnership (CHP). Merchants Capital / Merchants Bank of co-finance the operation Indiana, based in Carmel, Indiana, and Century Housing Corporation, a community development financial institution (CDFI), based in Culver City.
“The mission of our organization is to create a permanent home for people who have experienced homelessness, which is the most profound consequence of the economic inequalities that unions work to overcome,” said the CEO of CHP. Rick Aubry. “We are inspired, as a union shop, to be in solidarity with the AFL-CIO Housing Investment Trust through their investment.”
“This project demonstrates that great things can happen when the city, the private sector, the nonprofit sector and work come together,” he said. Michael Cohen, founding partner of Strada.
“53 Colton has gained speed, creativity and flexibility,” he said Lee Oller, Executive Vice President at Merchants. “We are enormously proud to be able to play a role in helping Strada and CHP build homes in the heart of San Francisco for people who have a great need “.
“Century is enormously pleased to assist in this development and to leverage its position as a nonprofit CDFI lender to provide additional affordable housing in San Francisco for those most in need, “said the vice president of Century Housing Nick friend.
The AFL-CIO Housing Investment Trust (HIT) is an investment grade fixed income mutual fund with $ 6.7 billion in equity. For over 35 years, HIT has been a leader in putting public and union retirement capital to work to produce competitive returns and meet mission-related side goals. Investors should carefully consider HIT’s investment objectives, risks and charges and expenses before investing. This and other information is contained in HIT’s current prospectus. To obtain an updated prospectus, visit the HIT website at www.aflciohit.com. Past performance is no guarantee of future results.
SOURCE AFL-CIO Housing Investment Trust (HIT)