Mayor Adams announces the creation of a $15 million revolving fund for community service providers serving the homeless

March 8, 2023

The Shelter public-private fund includes $5 million in city funding and $10 million in philanthropic investment capital from SeaChange Capital Partners

The fund will support the development of new housing and the rehabilitation of existing housing to expand quality housing in New York City

NEW YORK – New York City Mayor Eric Adams, New York City Department of Social Services (DSS) Acting Commissioner Molly Park, New York City Housing Development Corporation (HDC) President Eric Enderlin and Managing Partner of SeaChange Capital Partners, John MacIntosh, announced today the launch of a $15 million shelter development and acquisition fund for nonprofit homeless service providers to build, own and operate shelters. The revolving fund will ease the upfront financial burden that often prohibits experienced, mission-driven nonprofit homeless service providers from developing and owning their own shelters.

The protection fund will combine $5 million in city resources with $10 million in philanthropic, program-related investment capital arranged by SeaChange Capital Partners. The total of US$15 million will fund up to 10 new shelters over the first four-year phase and will fund additional projects as the loans are repaid. The shelter fund advances the Adams administration’s goal, outlined in Housing Our Neighbors: A Blueprint for Housing and Homelessness, to replace aging and substandard housing with quality housing that provides better conditions for residents.

“One of our key goals, outlined in our Housing and Homelessness Blueprint, was to replace outdated and substandard shelters with better, quality facilities. This $15 million funding will help the Department of Social Services and its nonprofit partners create a more resilient protective environment for adults who want to improve their lives and for children in that system as they continue their education,” said Mayor Adams. “I would also like to thank the philanthropic community for providing much-needed seed capital to allow this revolving acquisition fund to continue to grow through this administration and beyond.”

“This kind of innovative program shows the power of public-private partnerships,” he said Deputy Mayor for Health and Welfare Anne Williams-Isom. “It also demonstrates the city’s commitment to investing in accommodation infrastructure now and for years to come. Thank you to our external partners and to our intergovernmental team for coming together to make this possible.”

“As the city continues to face an unprecedented homelessness crisis, it’s important to ensure all New Yorkers have a safe place to rest at night, which is why we’re proud to announce the new shelter-earning fund,” he said Chief Housing Officer Jessica Katz. “Working closely with our nonprofit and community leaders who are on the front lines of homelessness assistance ensures that everyone has the support and services they need to get back on their feet. We are grateful to SeaChange Capital Partners for working with us to improve the conditions of our shelter system.”

“This DHS Revolving Shelter Fund is an essential bridging funding vehicle for our nonprofit provider partners who are increasingly developing their own shelter locations but have fewer resources to invest in the significant acquisition and pre-development costs that will be covered long before the City must contract is in force,” said Deputy DSS Commissioner Park. “We are incredibly grateful and grateful to Mayor Adams, HDC and SeaChange for their instrumental involvement in structuring and developing this fund and to the private philanthropic sector for turning up with much-needed capital to keep New Yorkers affected by homelessness safe to make state-of-the-art shelters on their journey from shelter to suitable housing.”

“The Shelter Fund will play an important role in strengthening the ability of nonprofit organizations to develop much-needed shelter locations,” he said HDC President Enderlin. “HDC is proud to join our partners across the city, including DSS and SeaChange Capital Partners, as we work on innovative solutions to address the dire crisis that is afflicting scores of New Yorkers with homelessness.”

“The fund enables strong non-profit organizations to develop and operate quality shelters,” he said John MacIntosh, Managing Partner, SeaChange Capital Partners. “I’m grateful to the philanthropic funders and city leaders who worked diligently to make it happen, and to Proskauer for serving as honorary legal counsel.”

The Shelter Fund will facilitate the creation of non-profit owned shelters by bridging the acquisition and pre-development costs that must be paid prior to contract registration. Projects selected through New York City Department of Homeless Services (DHS) open housing tenders are eligible to apply for the fund. Select non-profit organizations may receive pre-development loans of up to 130 percent of project-related costs to cover site acquisition and other pre-development costs. Funds will later be returned to the shelter fund, allowing the $15 million investment to support multiple projects over time.

“Homelessness has long been a chronic problem for New York,” he said Jonathan Soros, Chairman of the Jennifer and Jonathan Allan Soros Foundation. “This initiative to support purpose-built, non-profit owned shelters is essential to ensure that every person in need has a safe and hygienic place to find shelter. I am proud to be able to support the city and the non-profit animal shelter operators in this project.”

“The city’s nonprofit shelter providers have long had a mission to help the most vulnerable, but they have not had the support needed to develop safe, sustainable spaces under their control,” he said Shawn Morehead, vice president for grants, New York Community Trust. “We’re excited to be a part of this effort to help nonprofit organizations build and own shelters that better serve the needs of homeless New Yorkers.”

“Since 2005, I have worked closely with New York City’s nonprofit organizations and witnessed the remarkable efforts and ingenuity they bring to serving our most vulnerable New Yorkers. I’m proud to be able to support this project,” he said Mark Reed, Founder, Contact Fund and Reed Community Capital. “I know that by creating safe, modern and well-run shelters, many lives are improved.”

“This new $10 million private investment in New York City’s emergency shelters, coupled with $5 million in city funding, will eliminate the financial barriers that nonprofit shelter providers face in developing and maintaining facilities are facing,” he said New York State Senator Roxanne J. Persaud. “I thank SeaChange, Housing Development Corporation and the Department of Social Services for supporting this effort.”

“The launch of the $15 million shelter development and acquisition fund is a step forward in the fight against homelessness in New York City,” he said New York State Senator Luis Sepúlveda. “By reducing the upfront financial burden on nonprofit homeless services to develop and own their own shelters, the fund will help create quality shelters that provide better conditions for residents. I congratulate DSS, HDC President Enderlin and SeaChange Capital Partners Managing Partner John MacIntosh for their efforts in structuring and developing this fund and for the private philanthropic sector who have stepped up their efforts to provide much needed capital . This initiative is a clear example of how public-private partnerships can come together to solve complex societal problems and help those in need.”

“This public-private shelter fund is an innovative solution that will further alleviate the housing challenges of our communities by providing much-needed funds that strengthen the ability of nonprofit homeless service providers to own, operate and build shelters,” he said Rodneyse Bichotte Hermelyn, member of the New York State Assembly. “Housing is a basic human right, not a privilege, and New York City is committed to housing for all. I applaud and thank Mayor Eric Adams, HDC and SeaChange for creating a sustainable program to help our neighbors with housing.”

“Mayor Adams personally serves the homeless in our city, provides comprehensive services to homeless youth, and is dedicated to addressing the homeless crisis,” he said Jenifer Rajkumar, member of the New York State Assembly. “Today, his administration is taking the next step by establishing a $15 million fund to build and refurbish shelters. This investment will expand our capacity to reach even more New Yorkers and give them the help they need to become self-sufficient. Each new shelter bed brings more dignity, care and hope to our fellow New Yorkers and brings us closer to ending homelessness in our city.”

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