New York City comptroller Mark Levine thinks the city’s pension system could finance affordable housing projects that “otherwise wouldn’t get built”, according to a recent interview with affiliate title Responsible Investor (registration or subscription required).
Under the current strategic asset allocation, New York City’s pensions can deploy up to 2 percent of their portfolios in “economically targeted investments” in the city. The funds are currently at a 1 percent allocation, and Levine is keen to see the amount rise toward the cap.
“I’d like to make affordable housing the top priority in those additional investments,” Levine said in the interview. “I’ve already started talking to the trustees about this.
“It’s a very early stage, but I certainly intend to bring investment recommendations to them that achieve risk-adjusted returns consistent with our goals but also advance the cause of building more affordable housing in New York.”
Levine did not mention private markets specifically, but private capital strategies are a prominent way of investing in the sector, with managers like the Vistria Group, Nuveen and Jonathan Rose Companies among those active.
The city’s pensions will soon begin a strategic asset review – held roughly every three years – that will give the comptroller’s office an opportunity to examine affordable housing, green infrastructure and other climate issues, Levine said.
At the state level, the New York State Common Retirement Fund allocated $400 million to an affordable housing fund managed by Related Fund Management in July last year.
Levine took office on 1 January, succeeding Brad Lander.