Joseph Hernandez, Republican candidate for New York State Comptroller, recently commented on the mismanagement of the $300 billion New York State Common Retirement Fund under current comptroller Tom DiNapoli, highlighting how billions of dollars in pension assets are being deployed to build housing in other states, like Florida and Texas, while New Yorkers face a worsening affordability crisis.

According to public disclosures from the Office of the State Comptroller, approximately 12 percent to 14 percent of the state’s pension fund, over $40 billion, is allocated to real estate and real assets through mainly external institutional managers. The investments include large-scale commitments ranging from tens of millions to billions of dollars across multiple funds and vintages.

Investor materials and portfolio disclosures show that a significant portion of this capital is being deployed into housing developments and rental portfolios in Sunbelt states like Texas and Florida. These include multifamily housing projects, rental platforms and additional investments across these states.

“Florida and Texas are gaining residents and economic activity as New Yorkers are being priced out and are leaving by bad policies coming from Albany,” said Hernandez. “Instead of investing in our own communities, our current leadership is using New York workers’ retirement savings to finance growth in Texas and Florida.”

Hernandez pointed out that if elected comptroller, he’d have a plan to invest better so New Yorkers benefit here at home.

Just 10 percent of the pension fund’s real estate allocation would represent approximately $4 billion in potential in-state investment, while 5 percent of the total fund would equal roughly $15 billion. This is enough to finance tens of thousands of new housing units, expand workforce housing, and create new pathways to homeownership for middle-income families.

“At a time when two-thirds of New York City households are renters and homeownership is slipping out of reach, we are exporting capital instead of solving the problem,” Hernandez said. “We talk endlessly about affordability, but we fail to use the extraordinary amount of capital we already have. These strategies maintain the fiduciary duty of the comptroller’s office to maximize returns while helping every New Yorker.”

Hernandez sharply criticized DiNapoli for failing to align the state’s investment strategy with the needs of New Yorkers.

“For nearly two decades, Tom DiNapoli has overseen one of the largest pools of capital in the world, yet New Yorkers are left with rising rents, limited housing supply and shrinking opportunities for ownership,” Hernandez said.

As comptroller, Hernandez pledged to pursue a disciplined investment strategy that prioritizes in-state housing development while maintaining strong return and risk standards. His plan includes partnering with experienced developers, scaling housing supply, and targeting projects that create both affordability and long-term wealth-building opportunities for New Yorkers.

“New York does not lack capital, demand or opportunity,” Hernandez said. “What it lacks is leadership willing to step up for New Yorkers and start building here, investing here, and creating wealth here.”

Joseph Hernandez
New York City, NY