NEW YORK—A second New York Affordable Housing Preservation Fund (NYAHII) has been launched by Citi and L+M Development Partners. NYAH II is a $150 million real estate private equity venture created to help stem the loss of affordable housing in low- and moderate-income New York City neighborhoods.

The fund will apply equity capital towards properties that are at risk of becoming unaffordable to low- and moderate-income households and may be in physical or financial distress. By investing with operating partners and working with NYC’s Department of Housing Preservation (HPD) and Housing Development Corp. (HDC), NYAH II will provide sustainable solutions to New York’s affordable housing needs.

The fund is positioned to acquire up to $600 million in multifamily investments over the next several years.

NYAH II follows the impact of NYAH I, a $100 million investment vehicle that Citi and L+M launched in 2010, which is now fully invested and committed across a range of affordable multifamily investments in the New York City region.