Mor­gan Stan­ley, Na­tional Eq­uity Fund help com­mu­ni­ties hit by Sandy

The Pak Banker - - Front Page -

NEW YORK

Mor­gan Stan­ley and Na­tional Eq­uity Fund Inc (NEF) are ex­pand­ing their joint Re­build­ing Lo­cal Economies Fund with $75 mil­lion to sup­port re­place­ment hous­ing in com­mu­ni­ties dev­as­tated by Hur­ri­cane Sandy. The fund, launched in 2011, fi­nances af­ford­able hous­ing for low-in­come res­i­dents in FEMA-de­clared dis­as­ter ar­eas. It is de­signed to help jump-start eco­nomic ac­tiv­ity with new jobs and de­vel­op­ment ac­tiv­ity, in ad­di­tion to en­sur­ing that fam­i­lies have safe, qual­ity, af­ford­able hous­ing.

The now $200 mil­lion fund has al­ready com­mit­ted $108 mil­lion to de­vel­op­ment projects across parts of the Mid­west and South that were bat­tered by tor­na­does and floods over the last 18 months. The new $75 mil­lion com­mit­ment will fo­cus ex­clu­sively on parts of New York, New Jersey, Con­necti­cut, Rhode Is­land and other ar­eas im­pacted by Sandy’s de­struc­tion. When all $200 mil­lion is in­vested, the fund will have sup­ported the de­vel­op­ment of ap­prox­i­mately 1,500 units of af­ford­able hous­ing and the cre­ation of thou­sands of con­struc­tion and per­ma­nent jobs.

Mor­gan Stan­ley is com­mit­ted to sup­port­ing lo­cal com­mu­ni­ties when dis­as­ter de­mands an im­me­di­ate re­sponse, said Au­drey Choi, Manag­ing Di­rec­tor and Head of Global Sus­tain­able Fi­nance at Mor­gan Stan­ley. The Re­build­ing Lo­cal Economies Fund aims to kick-start and ac­cel­er­ate af­ford­able hous­ing op­por­tu­ni­ties and job cre­ation in these com­mu­ni­ties. So many peo­ple have lost so much to this catas­tro­phe, noted Joe Ha­gan, NEF pres­i­dent and CEO.

The fund is man­aged by NEF and con­nects Mor­gan Stan­ley cap­i­tal to projects that have been al­lo­cated fed­eral Low In­come Hous­ing Tax Cred­its (LIHTC). NEF has also set up a $4 mil­lion pool of pre­de­vel­op­ment cap­i­tal to help de­vel­op­ers ex­pe­dite the early work needed to launch these projects. LIHTC developments must be af­ford­able to fam­i­lies, se­niors and spe­cial needs res­i­dents earn­ing 60 per­cent or less of their area’s me­dian in­come. De­vel­op­ers earn the hous­ing cred­its through a state-based com­pet­i­tive process and then sell them to in­sti­tu­tional in­vestors to fund their projects.

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