Greystone, Lappin Partner on Affordable Housing

Greystone and Lappin Associates announced a joint venture to source billions in capital for financing of affordable housing.

The venture will source long-term, low-rate loans from Fannie Mae, Freddie Mac and HUD to owners of affordable multifamily properties, aiming to allow owners to complete renovations to preserve and maintain properties.

Greystone is a commercial real estate lending, investment and advisory company that provides HUD-insured loans. Greystone also provides Fannie Mae and Freddie Mac loans and is a general partner of America First Multifamily Investors, which manages more than $1 billion in assets consisting of mostly mortgage revenue bonds for multifamily affordable housing construction and permanent financing. Lappin Associates is an affordable housing advisory and development services firm, and is an affiliate of MLappin Associates, which was formed in 2014, and assists and advises on affordable housing policies and opportunities.

Stephen Rosenberg, CEO and founder of Greystone, stressed that the country’s affordable housing is “in crisis” but that the way forward is with government-backed loans and a plan for long-term upgrades. The joint venture would provide the loans to owners of affordable residential housing to preserve their properties, hopefully acting as a lift raft during the pandemic.

Michael Lappin, founding partner of Lappin Associates, said that the current coronavirus pandemic was putting additional stressors on private and non-profit rental housing for low- and moderate-income New Yorkers. Lappin was also the former CEO of the Community Preservation Corporation, where he oversaw the preservation and development of almost 95,000 affordable apartments in New York City.

“Well over one and a half million low- and moderate-income New Yorkers live in private and non-profit owned rental housing,” Lappin said. “Much of this housing is old and needs critical upgrading.”

Lappin said he believes the joint initiative with Greystone would “set an example” for New York City and other urban areas in the country. The initiative borrowed from techniques used by the Community Preservation Corporation in the 1970s and 1980s that worked to preserve tens of thousands of apartments.

“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,” Lappin said.