click image to close
Newsletter Sign-up
Sign up for our E-mail Newsletter
Bookmark Us
Bookmark and Share
Hundreds of affordable apartments will be preserved or newly constructed in Brooklyn     more...
Home > News > Summer 2014 Update
Contact Fund’s work to spur high-impact community development in New York City continues to progress. In the first quarter of 2014, our loan portfolio was stable at 15 borrowers, with an average loan of $282,000; outstanding loans increased 2%. The increase was driven by a significant expansion of our existing loan to Fifth Avenue Committee (FAC), and was offset by other principal repayments. FAC’s loan proceeds will fund leasehold improvements to the organization’s recently completed commercial space in its Atlantic Terrace mixed-income development. This space will begin paying for itself, generating an earned income stream for FAC. Five borrowers repaid principal, the most significant of which was Green City Force, which fulfilled its fiscal plan and repaid us in full – congratulations! Also noteworthy were principal repayments from Lower East Side People’s Federal Credit Union, New York City Montessori Charter School, and BTQ Financial. Most of our other borrowers have interest-only loans that repay when their projects complete or advance to a significant milestone.

In the second quarter of 2014, Contact Fund welcomed its newest borrower, Hale House Center, Inc. Hale House closed on a $500,000 working capital line of credit that pairs Contact Fund capital with strategic repositioning guidance from SeaChange Capital Partners. We look forward to a successful partnership over the next two years.

As the regional economy continues to improve, both on Wall Street and in more localized pockets, New York City’s real estate market has continued to appreciate. In response, city and state policymakers have announced and deployed more capital for housing programs. With Contact Fund’s help, effective neighborhood-level nonprofits are making major investments in their own administrative infrastructure to win more city contracts and serve more low-income New Yorkers. Contact Fund borrower Project Renewal has seen annual revenue increase by 4% during the two years of our loan. Greater Jamaica Development Corporation, a borrower in Queens, recently announced a major development deal that will see it realize large proceeds from the sale of properties it has assembled and repositioned out of the depths of recession in the 1970s.

Finally, we are pleased to officially announce the launch of a new fund, the New York Program-Related Investment Fund (NYPRI). This fund stands at $3.6 million and will be deployed alongside Contact Fund. The source of capital is “program-related investment” from three large New York foundations and SeaChange. Our pipeline remains robust, so we are eager to put these funds to work in collaboration with SeaChange starting in the fall of 2014.