2016 Year in Review: Thomas McGrath, The Community Preservation Corp.

Name & Title: Thomas McGrath, Senior Vice President, Director of Upstate Revitalization

Company Name: The Community Preservation Corporation

What was your most notable project, deal, transaction or professional achievement in 2016?

As a mission-driven, nonprofit lender we’re focused on providing financing for multifamily and affordable housing projects that help revitalize communities. In FY2016 we closed approximately $468 million in loans, but one of our most notable achievements may well be the funding agreement with the New York State Common Retirement Fund which helped to expand our permanent lending capacity.

In November, we finalized an agreement with the fund which is investing $710 million in a revolving facility that CPC will administer to provide permanent loans for low- and moderate-income multifamily projects in New York. This partnership significantly increases our capacity and ability to make an impact in communities.

What project, transaction, market trend or product had the greatest impact on your industry this year?

While CPC has a diverse lending portfolio that spans projects large and small, our core mission is serving the unique capital needs of small multifamily buildings which represent a huge piece of our state’s housing stock.

70% of multifamily rental units in the state are in smaller properties of 49 units or less. This stock is older, in need of investment and it’s where most low- to moderate-income families live.

Freddie Mac’s Small Balance Loan (SBL) product has a lot of potential to fill the gap in the market for this segment of the housing stock. As a select SBL seller/servicer we’ve seen the product gaining momentum in the marketplace. 

How will you be supercharging your productivity in 2017?

We did a lot in 2016 to lay the groundwork for a very strong 2017.

We continued to establish our presence in Western New York with the opening of our new office in Buffalo, allowing us to better serve the communities and borrowers in the region. We launched our equity investing platform, Community Capital Advisors, to increase our social impact by identifying like-minded partners to support long-term housing preservation projects. We’re also continuing our work with Freddie Mac and the Federal Housing Administration to expand our permanent lending platform throughout the state and region.

What emerging trends will drive investment and development in 2017? 

The Governor has been dedicated to bringing economic opportunity and investment back to our upstate cities, and earlier this year proposed an ambitious 10-year housing agenda that committed an unprecedented level of state resources to address housing challenges facing our state.

In New York, affordability and overall property conditions are persistent rental housing issues. The need for affordable housing is growing in our downtown hubs as well as in surrounding neighborhoods where the housing stock is older, more distressed and in need of investment and preservation.

At CPC we’re positioned to help leverage that investment and drive those resources to the places and projects they’re needed most through our unique partnerships in the public and private sectors.