CalPERS Pledges $100M to Nuveen’s US Affordable Housing Fund

The $501 billion California Public Employees’ Retirement System (CalPERS) has committed $100 million to the Nuveen Real Estate U.S. Affordable Housing Fund.

The allocation invests in both accessible housing and the creation of community-wide benefits, said Pamela West, portfolio manager for the fund and for Impact Investing at Nuveen Real Estate.

The affordability status of nearly 650,000 homes currently needs long-term preservation, according to Nuveen, one of the nation’s largest, vertically integrated institutional managers of affordable housing.

The U.S. Affordable Housing Fund aims to preserve housing for residents earning less than 80% of Area Median Income (AMI), with a large concentration of households earning less than 60% of AMI.

As the U.S. housing crisis worsens, rent inflation and the demand for rental homes among lower income earners are outpacing supply, West observed.

“To move the needle, we drive value through energy efficiency and community programs, including healthcare, education, financial inclusion, and employment services,” she added.

Launched in 2023, the fund currently comprises nearly 32,000 housing units across the U.S., valued at $6.3 billion.

CalPERS’ real estate program totals $50 billion, with 24% dedicated to apartments, which continue to gain in value amid a shortage and lack of affordability of single-family homes.