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CalPERS explains $500 million affordable housing commitment to Nuveen; panel and stakeholders press for California focus
Summary
CalPERS investment staff described a $500 million commitment to an affordable housing strategy led by Nuveen and partners; staff and panelists outlined preservation and new construction approaches, public‑private partnerships and state/federal funding trends. Local stakeholders urged CalPERS to increase California‑focused investment.
CalPERS staff outlined the rationale and early implementation of a $500 million affordable housing commitment made with manager Nuveen and discussed preservation and development strategies with industry partners.
Managing Investment Director Sarah Kaur (Real Assets) told the board the residential review in fiscal year 2022–23 identified affordable housing as an attractive opportunity for diversification and resilient cash flow; staff and the board consultant supported a $500 million commitment to Nuveen after due diligence on several managers. Kaur said the expected risk‑adjusted returns were in line with multifamily return expectations.
Nuveen representatives described their housing platform and capability to work with institutional fiduciaries. Pamela West (Nuveen) summarized market dynamics: undersupply, rent burden for low‑income renters and an estimated 7 million unit shortfall in the U.S. housing stock; she highlighted preservation—extending affordability covenants—and production through Low Income Housing Tax Credit (LIHTC) and public‑private partnerships.
WNC/Preservation Equity and other partners emphasized that institutional capital can stabilize existing affordable stock and expand new supply. Will Cooper (WNC) noted bipartisan congressional support for expanded LIHTC resources and said recent appropriations in the House maintained key housing programs. Panelists described project examples and services offered to residents (health and wellness programs, credit reporting for on‑time rent) that are intended to reduce turnover and improve long‑term operations.
Public commenters, including county housing leaders and nonprofit developers, urged CalPERS to consider larger California commitments because state and local pension capital could accelerate preservation and new housing for teachers, health‑care workers and farm laborers. CalPERS said the mandate for the strategy is U.S.‑wide but confirmed Nuveen has California assets and said staff will continue outreach to California jurisdictions and nonprofits.
No board vote was taken; the session served as a staff and partner briefing and public comment forum.
