Citi Community Capital and Rose Investments, a division of Jonathan Rose Companies, recently announced the launch of a $75 million fund which will preserve affordable housing for low- and moderate-income families across East Coast urban areas. The Rose Green Cities Fund LLC will acquire and renovate existing multifamily properties with cost-effective, high-impact green technologies, preserving their affordability for the long-term. The Fund will target projects in high-demand, mass-transit accessible locations, focusing on locations in Connecticut, New Jersey and the Washington, D.C. metro area.
This commitment by Citi Community Capital represents the latest in a series of transactions through which Citi has brought significant capital and an innovative approach to solving some of the most pressing community development issues in the country, such as the lack of quality, sustainable affordable housing. In the past two years, Citi has committed nearly $9.4 billion in community development activities including the creation and rehabilitation of 57,000 units of housing, all of which have an affordable component in the apartment complex. Other activities include healthcare centers and education facilities to promote jobs and quality living in the communities Citi serves.
The Rose Green Cities Fund leverages the expertise of Jonathan Rose Companies as a leading national developer, investor and fund manager with deep experience in green, urban affordable and mixed-income housing. "We are thrilled to partner with Citi, a global institution with a commitment to back innovative, community-based investment strategies," said Jonathan F.P. Rose, founder of Jonathan Rose Companies. "Our experience is that the green preservation of affordable housing is a fundamentally smart investment," Wendy Rowden, Managing Director of Rose Investments added. "Green retrofits can reduce costs for both tenants and owners, generate reasonable paybacks, hedge against rising energy prices and mitigate environmental impacts."
"Jonathan Rose Companies has a track record as a successful investor and developer of affordable housing and we are delighted to partner with them," said Andrew Ditton, Co-Head and Managing Director of Citi Community Capital. "Environmental sustainability and reinvestment in the communities where we work and live are both pivotal components to our Firm's commitment to responsible finance and we will continue to invest in high-quality, innovative projects that benefit our local communities and uphold our core principles."
According to Nathan D. Taft, Director of Acquisitions for Rose Investments, the Fund is pinpointing projects and portfolios from $25 to $50 million of total capitalization, with a special focus on Section 8, Low-Income Housing Tax Credits and expiring use assets in need of renovation.