NYC, CITI ANNOUNCE $40M STORM RECOVERY LOAN FUND

(The following is a reformatted version of a press release      
issued by the Office of the Mayor of New York and received via  
electronic mail. The release was confirmed by the sender.       
Michael Bloomberg is the founder and majority owner of          
Bloomberg, LP, the parent company of Bloomberg News)             
FOR IMMEDIATE RELEASE
December 20, 2012
No. 482
www.nyc.gov  
MAYOR BLOOMBERG, COMMUNITY PRESERVATION CORPORATION and Citi Launch $40 Million 
Storm Recovery Loan Fund for multi-family residential buildings 
Fund Provides Low-Cost Loans to Restore Multi-family Buildings to Habitability 
Mayor Michael R. Bloomberg, Director of Housing Recovery Operations Brad Gair, 
New York City Department of Housing Preservation and Development Commissioner 
Mathew M. Wambua, New York City Housing Development Corporation President Marc 
Jahr, The Community Preservation Corporation President and CEO Rafael E. 
Cestero, and Citi Community Capital Co-Head Andrew Ditton have launched the 
Storm Recovery Loan Fund, a pilot program to provide up to $40 million in 
low-cost loans to fund the repair of multi-family buildings damaged by 
Hurricane Sandy. Building owners can put the funds toward resiliency measures, 
like installing state-of-the-art heating and electric plants that are 
repositioned to withstand the next storm by being located on higher floors 
and/or in waterproof compartments. This focus on mitigation will decrease the 
cost of recovery and reduce the destructive impact of future storms. The 
program will also promote green improvements that will conserve energy and save 
money over the long term. The new fund blends a subsidy from Housing 
Preservation and Development with Community Preservation Corporation financing 
to provide loans that are below market rate, allowing owners to make needed 
repairs in the aftermath of Sandy. 
“These loans will enable multi-family property owners to restore buildings to 
working order and allow hundreds of residents displaced by Sandy back in their 
homes,” said Mayor Bloomberg. “The goal of the funding is not only to have 
these owners remediate hazardous conditions, but also to encourage them to make 
improvements that increase resiliency to climate-related events.” 
“Returning these buildings to safe conditions and protecting them from future 
damage benefits our residents immediately by returning them to their homes, and 
saves the City and taxpayers money in the long term,” said Deputy Mayor for 
Economic Development Robert K. Steel. “The preservation and long-term health of 
our multifamily housing stock is vital to keeping New York City livable and 
sustainable.”
“This fund will go a long way toward helping us fulfill our mission to return 
every resident displaced by Sandy to permanent housing, and it will have the 
added benefit of helping building owners rebuild stronger and smarter,” said 
Housing Recovery Operations Director Gair. 
“It is critical that owners of multifamily buildings have the resources 
available to get back up and running as quickly as possible,” said Commissioner 
Wambua. “The Storm Recovery Loan Fund uses City resources to leverage private 
dollars at below market rates.  We are grateful for the commitment our partners 
have shown in helping fellow New Yorkers rebuild after Sandy. CPC, Citi and HDC 
have partnered with us to lead this effort to develop financing programs that 
will help restore our housing stock. I am pleased to announce the launch of the 
Storm Recovery Loan Fund that will set building owners on the road to recovery.” 
“HDC’s credit support has played an important role in bringing Citi’s financial 
power to bear on behalf of CPC and the City’s irreplaceable affordable housing 
stock. Creating this pilot program from this pool of funds to serve those who 
have been harmed by Hurricane Sandy is the best thing we can do right now,” HDC 
President Jahr said. “Together we are expanding the boundaries of what is 
possible and together is how we will make these transactions work for the 
owners, the tenants, as well as the long-term resiliency of  these multi-family 
buildings.” 
HDC will provide a 10 percent first loss credit enhancement on construction 
loans financed through the program. In this pilot phase, the majority of 
applications for the Storm Recovery Loan Fund will be primarily for buildings 
between five and 45 units, although larger buildings will be considered. 
Applications are accepted on a rolling basis and funding is available both to 
repair storm damage and to mitigate the potential impact of future storms. 
“Although Superstorm Sandy occurred almost two months ago, thousands of 
multifamily residents are unable to go home, or are living in apartments with 
significant storm damage. Building owners want to quickly repair and protect 
their buildings from future storms. CPC’s core mission is to create sound 
rental housing for lower income families and to rebuild communities, so we are 
proud to be part of the City’s rebuilding efforts,” said Rafael E. Cestero, 
President and CEO, The Community Preservation Corporation. “The Storm Recovery 
Loan Fund makes it easier for multifamily building owners to access the capital 
needed to restore buildings to adequate living conditions and make them more 
sustainable for years to come. We are proud to work with our partners HPD, HDC, 
and Citi to help communities rebuild.” 
“Citi is proud to be part of this initiative to help rebuild the communities 
that were affected by this catastrophic event and we will continue to be an 
active participant in the ongoing recovery efforts,” said Andrew Ditton, 
Co-Head of Citi Community Capital. “We are confident that the Storm Recovery 
Loan Fund will help provide a quick and efficient funding source throughout the 
rebuilding process.” 
Both for-profit and not-for-profit owners of multifamily buildings in NYC are 
eligible to apply for the Storm Recovery Loan Fund. Loan proceeds may be used 
for repair work ranging from systems replacement and storm mitigation retrofits 
to gut rehab, where necessary.  Storm Recovery Loans may have up to a 30-year 
term. CPC’s portion of the loan will have a rate of approximately 4.5%, and 
HPD’s funds have an interest rate of 1%, for a blended rate below other 
conventional financing. 
All projects must comply with HPD standard specifications and substantial rehab 
projects must achieve Enterprise Green Communities Certification. In keeping 
with NYC’s Greener Greater Buildings Plan, all of the properties financed under 
this program will be benchmarked for energy usage and retrofit for energy 
savings will be included in their scopes of work.  All buildings burning number 
6 oil will be converted to comply with the City’s Clean Heat initiative. In 
addition, gut rehabilitation projects must meet HPD’s construction 
specifications and design guidelines. 
Building owners who are interested in applying for the program should go to 
NYC.gov or call 311. 
Contact:         Marc La Vorgna/Julie Wood                                       
(212) 788-2958 
Catie Marshall (HPD/HDC)                                        
(212) 863-8076 
Stephanie Ramirez (CPC)                                         
(212) 784-5704 
Scott Helfman (Citi)                                            
(212) 816-9241 
(kgt)NY