Homeownership in New York City

HIT HOMEOver $1 billion in home mortgage loans have been provided to New York City union members and city employees since 2002 as part of the HIT's New York City Community Investment Initiative. The HIT currently carries out its HIT HOME mortgage program in cooperation with the Union Privilege Mortgage Program and Chase.

Record HIT Projects Financed

The HIT commits $184 million for 25 new investments, setting a record for the number of projects financed in a single year. The projects represent over 3,300 housing units and approximately 3,200 union construction jobs.

Workforce Housing Roundtable

The HIT hosts a roundtable discussion of workforce housing, engaging industry experts in a dialogue on financing strategies and innovative solutions to address New York City's urgent need for housing affordable to middle-income households.

U.S. Financial Crisis Worsens

Financial CrisisThe economic recession that began in December 2007 worsens throughout 2008, with layoffs surging, consumer spending declining, home foreclosures rising, and the financial system immobilized by the credit crisis. Banking institutions that are considered "too big to fail" get help from the Federal Reserve and U.S. Treasury Department, as calls are heard for greater regulation of financial institutions.

Government Stimulus Programs

The federal government institutes a variety of fiscal and monetary stimulus programs during 2008 in an effort to end the Great Recession:

  • The Federal Reserve tries to ease the credit crisis and spur investment with successive cuts in interest rates, but banks are reluctant to lend, either for housing or for other sectors of the economy.
  • Congress enacts an economic stimulus package in February that provides tax rebates to Americans and incentives for business investment.
  • In July, the Housing and Economic Recovery Act becomes law, offering assistance and greater regulatory control for Fannie Mae and Freddie Mac, modernization of the FHA, and help to struggling homeowners.
  • Federal conservatorship of Fannie Mae and Freddie Mac in September provides some financial relief for their losses and allows them to continue to support housing in the U.S.
  • In October, President George W. Bush signs into law the $700 billion Troubled Asset Relief Program to buy toxic assets from financial institutions.

By year-end, the government has allocated about $1.4 trillion to stabilize the financial system, but the economy has yet to show signs of recovery.

HIT Investors Benefit

Despite the market challenges, the HIT delivers positive returns to its investors in 2008, outperforming its benchmark and many other fund managers. With its value-focused strategy and its portfolio of high credit quality securities, the HIT has never been part of the excessive risk-taking that underlies the dramatic market failures of the Great Recession.

Generating Union Jobs

WorkerWhile achieving its competitive returns, the HIT also continues to generate union jobs and affordable housing through its investments. During 2008, 27 HIT-financed projects are under construction or preparing for start-up. Those projects are generating over 4,800 family-supporting jobs for union members across the country.