Greystone and Lappin Associates Form Joint Venture to Preserve and Stabilize Affordable Housing
June 29, 2020
Category: Affordable Housing
New Team Brings Leading Financial, Regulatory, Tax & Development Resources Together to Revive a Housing Sector in Crisis
Greystone, a leading commercial real estate lending, investment, and advisory company, and Lappin Associates, a leading affordable housing advisory and development services firm, today announced a joint venture that will aim to deploy billions in capital for the financing, preservation and stabilization of affordable multifamily housing. The joint venture will source long-term, low-rate Fannie Mae, Freddie Mac and HUD-insured loans that will enable owners of affordable multifamily projects to complete moderate renovations in order to prolong the life of their properties.
As the current pandemic worsens the environment for the creation and protection of affordable housing, owners need to seek creative solutions to address growing demand. Recognizing this need, Greystone and Lappin Associates are combining strengths to provide a life raft for affordable properties. Greystone is the #1 multifamily and healthcare provider of HUD-insured loans, a top provider of Fannie Mae and Freddie Mac affordable housing loans, and is the General Partner of America First Multifamily Investors, L.P. (Nasdaq: ATAX), which manages over $1 billionin assets consisting primarily of mortgage revenue bonds intended for multifamily affordable housing construction and permanent financing. Along with Greystone’s extensive experience and capabilities in structuring finance solutions for the affordable sector, Lappin Associates is a leading on-the-ground development advisor whose principal has over 35 years of expertise in navigating federal, state and local regulatory and tax requirements. Lappin Associates is led by Michael Lappin, the former CEO of the Community Preservation Corporation. During his tenure at CPC he oversaw the preservation and development of almost 95,000 affordable units in NYC.
“The nation’s affordable housing stock – and particularly New York City’s – is in crisis, but there is a proven method for preserving properties both financially and physically with the help of government-backed loans and a strategic plan for long-term upgrades and efficiency,” said Steve Rosenberg, CEO and founder of Greystone. “We believe this joint venture brings together the strongest providers in the affordable housing sector to give new life to critical residential housing, and we are thrilled to make an impact for both private and non-profit owners and their many residents.”
“Well over one and a half million low- and moderate-income New Yorkers live in private and non-profit owned rental housing. Much of this housing is old and needs critical upgrading. In the current crisis, almost all of this housing is stressed financially and needs a lifeline. Using techniques pioneered by CPC in the 70’s and 80’s that preserved tens of thousands of apartments, our work with Greystone will seek to provide a safety net for this housing. By leveraging today’s historically low interest rates, combined with help from the government and the private capital markets, this housing can remain physically and financially strong and provide affordable and healthy housing for this and the next generation. Our initiative with Greystone can set an example of how this can be done on a meaningful scale in New York and in other urban centers,” said Michael Lappin, founding partner of Lappin Associates.