Goldman Sachs creates $23 million affordable housing fund
Wall Street bank Goldman Sachs is joining forces with investment practice Jonathan Rose Companies to create a $23 million private-equity fund to acquire housing in New Jersey that meets requirements of the community reinvestment act. The houses will then be retrofited to greener standards, according to the companies. Goldman said it is committed to keeping these homes, which are located near mass-transit facilities, affordable to occupants for a long time. The fund will seek to replicate the Rose Smart Growth Investment Fund in Harlem. The Rose New Jersey Green Affordable Housing Preservation Fund will improve assets through a “green” capital improvement and operations program “We are very excited about the opportunity to bring the economic, social and environmental benefits of green retrofits to affordable housing projects in New Jersey," said president Jonathan Rose. "Together with Goldman Sachs, we can have a meaningful impact on the lives of lower-income families.” Goldman Sachs is establishing the fund through its Urban Investment Group, which helps transform underserved U.S. communities into sustainable and vibrant neighborhoods of choice and opportunity. Since its inception in 2001, UIG has committed nearly $1.2 billion to revitalize underserved urban communities. UIG has serviced 9,000 housing units — 75% of which are affordable to low-, moderate- and middle-income families. Wendy Rowden, a managing director of Jonathan Rose investment firm said the planned green retrofits might help reduce costs for owners and tenants. Write to Jacob Gaffney.