Morgan Stanley and National Equity Fund, Inc. (NEF), have expanded their Rebuilding Local Economies Fund to help support the rebuilding of housing in communities devastated by Hurricane Sandy.
Launched in 2011, the fund finances affordable housing in federally declared disaster areas. It aims to jump-start economic activity with new jobs and development activity in addition to ensuring that families have quality affordable housing.
The $200 million fund has committed $108 million to development projects across parts of the Midwest and the 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 hit by Sandy.
When all $200 million is invested, the fund will have supported the development of approximately 1,500 affordable housing units and the creation of thousands of construction and permanent jobs.
The fund is managed by NEF and connects Morgan Stanley capital to developments receiving low-income housing tax credits. NEF has also set up a $4 million of predevelopment capital to help developers launch these projects.
“So many people have lost so much to this catastrophe,” said Joe Hagan, NEF president and CEO, in a statement. “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.”
Audrey Choi, managing director and head of global sustainable finance at Morgan Stanley, said the fund aims to kick-start and accelerate affordable housing opportunities and job creation in these communities.