If elected as the next city Comptroller, Manhattan Borough President Mark Levine wants to go beyond the basics of the fiscal watchdog post with his own plan to tackle the city’s sprawling affordable housing crisis.
Levine’s proposal, which his campaign shared exclusively with amNewYork Metro ahead of its Wednesday release, would use the municipal pension fund system, which is managed by the comptroller’s office, to help finance building and preserving as many as 75,000 affordable units over the next decade.
The plan is one of many put forward by Democratic primary candidates this year who are pledging to address a housing shortage that has sent rents soaring and left only about 1.4% of apartments across the city available.
“New York’s housing crisis is a moral and economic emergency,’ Levine said. “We cannot let our city’s working families, seniors, and municipal employees be pushed out of the very neighborhoods they help sustain. As Comptroller, I will put our pension fund to work for affordable housing, ensuring that thousands of New Yorkers can finally access the housing they need and deserve.”
The Manhattan beep’s four-part plan is built on establishing what he has dubbed the “NYC Affordability Fund,” which would be run through the city pension systems’ already existing Economically Targeted Investments fund.
The ETI makes up 2% of the city pension funds’ investments, but according to Levine’s campaign, only about half of the fund has actually been allocated. That leaves roughly $2.5 billion remaining unused.
Levine’s proposed new fund would essentially create a vehicle for allowing developers to tap those dollars to finance their affordable housing projects, which could speed up the rate of development, Levine’s campaign says. The fund is unique because it would allow developers to convert the debt they take out into equity in a building once it is completed.
“Across New York City, there are thousands of homes waiting to be built — the plans are approved, but developers lack the financing to get it done,” Levine said. “The NYC Affordability Fund unlocks those dollars for us to invest directly in creating and preserving up to 75,000 affordable homes.”
According to his campaign, the new fund would be complimented by the second part of Levine’s plan. That piece of the proposal calls for changing internal comptroller office policy to reclassify affordable housing as a “core” area of real estate investment, which would make it less expensive for developers to access the financing.
The plan’s third component involves pushing for the state to remove a limit on how much the city pension funds can invest in affordable housing production. Its fourth prong envisions working with the state and federal governments to lift a cap on the federal Low-Income Housing Tax Credit, which could also help projects get built more quickly.
Levine, who launched his comptroller bid last summer, is in a tight Democratic primary battle with Brooklyn City Council Member Justin Brannan. Both candidates launched campaigns for the position after current city Comptroller Brad Lander jumped into the race to unseat Mayor Eric Adams last year.
Brannan, according to his campaign website, has also proposed utilizing the city’s pension funds to build affordable housing specifically for city employees.
Although the race is competitive, Levine has emerged as the early frontrunner. He has a sizable list of endorsements from elected officials and political organizations.
Brannan has also received support, most recently from the left-leaning New York Working Families Party.
Levine has also far outraised Brannan by unlocking nearly $1.9 million in public matching funds. According to city Campaign Finance Board records, he currently has over $2.3 million at his disposal.
