NYC launches $50m initiative to boost minority business in housing

New York City Mayor Eric Adams, joined by New York City Housing Preservation Development (HPD) Commissioner Adolfo Carrión Jr. and New York City Housing Development Corporation (HDC) President Eric Enderlin, unveiled a groundbreaking initiative aimed at addressing historical financial barriers faced by Minority Business Enterprises (MBEs) in participating in affordable housing development.

Dubbed the “New York City Minority Business Enterprise Guaranty Facility,” the initiative, established in collaboration with the Urban Investment Group at Goldman Sachs and the Community Preservation Corporation (CPC), is set to allocate up to $50 million. This funding is projected to catalyze up to $500 million in private construction lending specifically tailored to MBEs.

Mayor Adams underscored the significance of this initiative in tackling the city’s housing crisis, emphasizing his commitment to creating a fairer and more equitable New York City. He echoed the sentiments expressed in his recent State of the City Address, calling for comprehensive housing measures from Albany to address the urgent need for affordable housing.

Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer highlighted the initiative’s role in not only addressing the housing crisis but also in rectifying historical inequities in capital access for MBEs, thereby fostering more inclusive economic growth.

HPD Commissioner Carrión stressed the importance of MBEs as essential contributors to affordable housing development, emphasizing the initiative’s role in leveling the playing field and empowering minority developers to meet the city’s housing needs.

HDC President Enderlin echoed these sentiments, emphasizing the significance of equitable access to capital in promoting MBE success and advancing affordable housing goals.

The initiative was lauded by various stakeholders, including New York City Executive Director for Housing Leila Bozorg, who praised it for proactively dismantling barriers hindering minority-owned firms’ participation in affordable housing development.

Goldman Sachs representatives expressed their commitment to fostering minority business growth through innovative funding models, while CPC CEO Rafael E. Cestero hailed the initiative as an investment in closing the racial wealth gap and building more equitable communities.

The initiative aligns with Mayor Adams’ broader efforts to promote economic equity, particularly for Minority- and Women-Owned Business Enterprises (M/WBEs). In the previous fiscal year, city agencies awarded over $6 billion to M/WBE firms, setting records in contract awards and utilization rates.

The Adams administration’s focus on expanding access to affordable housing has yielded significant results, with record-breaking numbers of affordable homes financed in 2023, underscoring the administration’s commitment to addressing the city’s housing shortage.

State lawmakers, including New York State Assemblymembers Jenifer Rajkumar and Rebecca Seawright, commended Mayor Adams for his leadership in promoting minority participation in affordable housing development and pledged support for the initiative.

The initiative received enthusiastic support from MBE developers, who hailed it as a game-changer for minority-owned businesses in the construction industry, expressing optimism about its potential to foster growth and scalability for small-scale developers.

In conclusion, the launch of the “New York City Minority Business Enterprise Guaranty Facility” represents a significant step towards promoting economic equity, fostering minority business growth, and addressing the city’s affordable housing challenges.