Morgan Stanley, National Equity Fund Expand Disaster Relief Fund to $200
Million to Help Communities Battered by Sandy
$75 Million Expansion Will Accelerate Recovery, Create Jobs In Hardest Hit
NEW YORK & CHICAGO -- November 13, 2012
Morgan Stanley (NYSE: MS) 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
“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 scale is overwhelming. We want to focus resources on
the places that need them most, and work with new and existing partners in
these communities to help developments move forward.”
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.
“This much-needed capital is a critical part of our work to help victims of
Sandy on their long road to recovery,” noted Michael Rubinger, president and
CEO of the Local Initiatives Support Corporation (LISC). LISC – a national
nonprofit and NEF's parent – recently announced an Emergency Relief Fund to
help low-income residents and communities hit by the unprecedented storm.
“With the support of partners like Morgan Stanley, LISC and NEF have been on
the ground in these neighborhoods for decades,” Rubinger said. “Now, we are
working hard to assemble our national resources to help meet the staggering
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. The Low Income
Housing Tax Credits direct some $9 billion in development capital to
low-income communities each year.
“Affordable housing development can help underpin economic recovery in
communities reeling from disaster,” said Mike Mantle, Senior Advisor in Morgan
Stanley Global Sustainable Finance. “Through collaborations like this, we can
foster long-term, sustainable economic growth in these communities and rally
resources at a time of great hardship.”
For more information about project investments through the Rebuilding Local
Economies Fund or to make an inquiry about a particular need, please contact
NEF’s Tony Lyons, 212-455-9323 or email@example.com.
About Morgan Stanley
Morgan Stanley is a leading global financial services firm providing a wide
range of investment banking, securities, investment management and wealth
management services. The Firm's employees serve clients worldwide including
corporations, governments, institutions and individuals from more than 1,200
offices in 43 countries. Since 2006, Morgan Stanley has executed more than $5
billion in investments to strengthen underserved communities. For further
information about Morgan Stanley, please visit www.morganstanley.com.
Celebrating its 25th anniversary in 2012, National Equity Fund, Inc. (NEF) is
a nonprofit Chicago-based affiliate of the Local Initiatives Support
Corporation (LISC) and the nation’s largest syndicator of Low Income Housing
Tax Credits (LIHTC). Since its inception, NEF has played an integral role in
creating affordable housing options, revitalizing communities and
strengthening local economies. It has invested $9.5 billion in more than 2,100
LIHTC developments, creating 127,000 affordable homes for low-income families
and individuals. For more information, visit www.nefinc.org.
Matt Burkhard, 212-761-2444
National Equity Fund, Inc.
Colleen Mulcahy, 312-342-8244
Press spacebar to pause and continue. Press esc to stop.