HIT Executive Vice President and Chief Portfolio Manager Chang Suh was among the representatives from the AFL-CIO Housing Investment Trust who recently attended the annual IBEW-NECA Employee Benefits Conference, in order to meet with many HIT participants and discuss the advantages of investing with the HIT. The conference provides a forum for IBEW-NECA fund trustees to discuss current issues affecting employee benefit funds and their participants and learn about new programs and services. The IBEW currently has 90 IBEW-affiliated funds participating in the HIT, more than any other international union.

Suh made a presentation to the conference, where he discussed the HIT’s investment strategy and performance. He also reported on the union construction jobs generated by the HIT’s investments, which are providing work for many IBEW members.

Click here to read Chang Suh’s full Performance Commentary for 4^th Quarter 2011.

The number of people experiencing homelessness has dipped slightly in the United States, says a new study by the National Alliance to End Homelessness (NAEH). But there are several indicators that homelessness is likely to rise again in coming years.

NAEH President Nan Roman called it “remarkable” that homelessness did not increase despite the recession. “That appears to be due to the $1.5 billion federal Homelessness Prevention and Rapid Re-Housing Program,” Ms. Roman said, adding that although the program was successful, the funds are nearly gone.  “In order to prevent a rise in homelessness in the future, we need to prioritize a safety net for the most vulnerable, and to ramp up investment in proven, housing-centered solutions.”

Responding to these findings, Stephanie Wiggins, Executive Vice President and Chief Investment Officer of the AFL-CIO Housing Investment Trust (HIT), noted that the HIT shares the NAEH’s commitment to “housing-centered solutions” to help end homelessness.

“The HIT is proud to support the work of the NAEH through our investments in affordable housing projects all across the country,” she said.  “In over 45 years of investing, the HIT has committed $6.3 billion for projects representing over 100, 000 housing units, some 62,000 of which are affordable to low-income families, including housing for the homeless or those at risk of homelessness.”  She adds that these investments have also generated almost 70,000 family-supporting union jobs that “will help give working families the housing security they need and deserve.”

Click here to read more about the NAEH study and the HIT’s commitment to affordable housing.

For the first time since 2008, the number of union members rose in 2011, according to a recent report by the Center for Economic Policy and Research (CEPR). After falling by approximately 1.4 million workers between 2008 and 2010, total union membership was up by approximately 49,000 from the previous year.  Gains of 110,000 union workers in the private sector were partly offset by losses in the more heavily unionized public sector, reflecting the substantial job cuts in all levels of government.

During a year of market uncertainty and persistent volatility in which many fixed-income investments underperformed the benchmark, the AFL-CIO Housing Investment Trust (HIT) once again turned in a strong performance. The HIT outperformed the Barclays Capital Aggregate Bond Index on both a gross and net basis for the year ending December 31, 2011. This marks the 19th consecutive calendar year in which the HIT’s one-year gross returns have exceeded the benchmark, with the HIT’s net returns exceeding those of the benchmark for 12 of those years.

The HIT’s consistent competitive performance and its job-creating investments across the country have stimulated investor confidence and attracted $347 million in new capital from participants during 2011. This included $187 million in new investments and a dividend reinvestment rate of nearly 90%.

Click here to read more on the HIT’s strong performance in 2011.

 For the 1-, 3-, 5-, and 10-year periods ended December 31, 2011, the HIT’s net returns were 7.86%, 6.76%, 6.45%, and 5.89%, respectively. The performance data quoted represents past performance and is no guarantee of future results. Periods over one year are annualized. Investment results and principal value will fluctuate so that units in the HIT, when redeemed, may be worth more or less than the original cost. The HIT’s current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available from the HITs website at www.aflcio-hit.com. Gross performance figures do not reflect the deduction of HIT expenses. Net performance figures reflect the deduction of HIT expenses and are the performance figures investors experience in the HIT. Information about HIT expenses can be found on page 1 of the HIT’s current prospectus. 

Boston Mayor Thomas Menino and federal, state, and local housing officials gathered with residents to dedicate the newly renovated Washington Beech public housing complex in the city’s Roslindale community. Working with the Boston Housing Authority, MassHousing, and developer Trinity Financial, Inc., the HIT provided $13.5 million to help finance one phase of the project involving construction of 56 affordable townhouse-style and one-level rental units in seven buildings. With a total development cost of $25.5 million, that phase generated approximately 145 union construction jobs. In all, the redeveloped property offers 206 affordable rental units and created more than 400 jobs, according to the mayor’s office.

“This project has transformed the Washington Beech neighborhood into a beautiful new residential community of which the residents can be proud,” said Thomas J. O’Malley, Director of the HIT’s New England Regional Office. “The prominent location of the HIT-financed property at the intersection of Washington and Beech creates a focal point that speaks to the importance of the whole development.”

The Washington Beech project is part of the HIT’s Massachusetts Housing Initiative, through which the HIT is working with MassHousing to increase the availability of affordable housing in the state.

To read the full story, please click here.

Building America CDE, Inc. (Building America), a wholly owned subsidiary of the AFL-CIO Housing Investment Trust (HIT), has allocated $10 million in New Markets Tax Credits (NMTC) for the construction of the St. Peter’s College Campus and Community Center in Jersey City.  The project is expected to generate over 240 union construction jobs for the New Jersey Building Trades, whose members have been particularly hard hit in the current economic slowdown. In addition, St. Peter’s College is collaborating with the AFL-CIO to begin a construction trades neighborhood training program to provide apprenticeship, training, and employment opportunities for local residents.

“The Center will create jobs and offer a range of services to students and local residents,” said Eric W. Price, CEO of Building America and Executive Vice President of the HIT. “It will also serve as a catalyst for significant future development activity that will strengthen this distressed community.”

 To read more about the new center at St. Peter’s College, click here.

Affordable housing can help communities achieve economic growth, job creation, and recovery, according to speakers at the recent 38th Annual Awards Luncheon sponsored by the National Housing Conference (NHC) and the New York Housing Conference (NYHC) in New York City. Representatives from the AFL-CIO Housing Investment Trust (HIT) were among the more than 1,200 national and local housing professionals at the event, which recognized individuals and organizations whose efforts over the past year helped to ensure safe and affordable housing in New York.

“This year’s theme of job creation and recovery is important for the entire industry as it really embodies everything about affordable housing—where the industry is going and how important it is to the economic recovery,” said Judy Calogero, CEO of the NYHC. “Not only are we creating affordable housing for people in need, but we are also creating jobs and enabling people to afford to live near where they work within their salaries.”

“We congratulate this year’s honorees,” said Carol Nixon, director of the HIT’s New York City office. “The HIT shares their steadfast commitment to the development of affordable housing and to the economic growth and jobs this sort of investment brings to communities and families here in New York and around the country.”

To read more about this event, please click here.