On Wednesday, March 8th, Mayor Eric Adams announced a new shelter financing project that will be funded by the city and the private entity, SeaChange Capital Partners. The shelter fund amounts to $15 million, with a $5 million contribution coming from the city, and a $10 million investment from SeaChange Capital.
The financial contribution will go towards the building, operation, and owning of high quality shelters by non-profit homeless service providers. In the first four years of the project, the funding will contribute towards the building and development of 10 new shelters.
“One of our top goals outlined in our housing and homelessness blueprint was to replace aging and substandard shelters with better high-quality facilities. This $15 million in funding will help the Department of Social Services and their non-profit partners provide a more stabilized shelter environment for adults looking to better their lives and for children in this system as they continue their education,” said Mayor Adams.
Mayor Adams continued, “I also want to thank the philanthropic community for pitching in with much-needed seed capital so that this revolving acquisition fund can continue to grow through this administration and beyond.”
The shelter fund will be a rotating fund. Projects selected through the city’s Department of Homeless Services’ Requests for Proposals can apply to the fund. Non-profit shelter service providers can receive predevelopment loans for up to 130% of the costs of the project. The funds will be paid back to allow other projects to be supported.
“The fund allows strong nonprofits to develop and operate high-quality shelters,” said John MacIntosh, a managing partner at SeaChange Capital Partners. “I am grateful to the philanthropic funders and the city leaders that have worked diligently to make it a reality and to Proskauer for serving as pro bono legal counsel.”
New York City has a well-documented affordable housing problem, which in turn leads to widespread homelessness. Initiatives such as this partnership between the city and a private company help by providing those who are homeless with shelter.
“This type of innovative program shows the power of public-private partnerships,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “It also demonstrates the city’s commitment to investing in shelter infrastructure now and for years to come. Thank you to our external partners and to our team across government for coming together to make this possible.”
