NEW YORK — Eager to help New York City after the Sept. 11 terrorist attack, the A.F.L.-C.I.O. yesterday announced a program in which unions would invest $750 million of their pension funds for housing and commercial development, according to the New York Times.
John J. Sweeney, the federation’s president, joined Mayor Michael R. Bloomberg in Manhattan to announce the investment fund, which is expected to finance 5,000 housing units for low-income and middle-income families.
“After the devastation of Sept. 11, we want to do something tangible for the economic recovery by putting workers’ pension dollars to work for this great city,” Mr. Sweeney said.
Part of the money will be used for mortgages for moderate-income union members, and part will be used for equity investments in housing and commercial buildings. Union officials are working to develop a no- down-payment mortgage plan for firefighters, police officers and other moderate-income union members seeking to buy housing.
The investments will meet two of labor’s primary concerns, creating unionized construction jobs at a time the city’s economy has stumbled, and providing housing affordable to moderate-income families of union members.
Mr. Bloomberg praised the program, saying: “In the fiscal crisis of the 1970’s, labor’s pension fund investment helped New York through some of its darkest hours. Today, with the city facing financial hardship once again, our friends in the house of labor have come through.”
Mr. Bloomberg appeared alongside Mr. Sweeney at the new headquarters of the New York City Central Labor Council, the umbrella organization representing more than one million union members. They joined Brian M. McLaughlin, the labor council’s president, for a ribbon cutting at the new headquarters, at 31 West 15th Street.
Mr. Bloomberg, who has reached out repeatedly to labor in his two weeks as mayor, received a warm reception from the 100 union leaders who attended the news conference.
State Comptroller H. Carl McCall surprised the audience by announcing that the state would invest $100 million in union pension funds to help rebuild the city. Labor leaders said they hoped individual unions would pledge additional pension money to the rebuilding efforts, so that the fund could top $1 billion.
The $750 million will come from the labor federation’s Housing Investment Trust and its Building Investment Trust.
Stephen F. Coyle, chief executive of the A.F.L.-C.I.O.’s housing and building trusts, said the $750 million could produce more than $2 billion in construction when coupled with loans and investments from other investors.
Seeking to reassure retired workers, labor leaders said the money would earn a solid return for the pension funds.
Under the federation’s effort, $250 million will be used to build or rehabilitate rental housing in New York, with an emphasis on Manhattan north of 96th Street and the other four boroughs.
Another $250 million will be directed to commercial real estate opportunities, and another $250 million will go to mortgage loans for municipal employees and other union members.
“This initiative is a double win for New York City,” Mr. Bloomberg said. “Not only does it provide crucial post-Sept. 11 investment, but it will also build much-needed affordable housing.”
The labor fund recently agreed to finance a 259-unit housing project at 37th Street and Ninth Avenue.