CalPERS might put management of its $1 billion member home loan program up for bid. First Nationwide manages the program, which offers residential mortgages to qualified plan participants who use their retirement assets as collateral. Pending approval by the investment committee of the $144 billion California Public Employees’ Retirement System, staff expects to have a new manager on board by July 1. The move is being recommended by staff because "it has been some time” since the Sacramento-based system has solicited bids for the contract, according to a staff memo.
Separately, staff recommended three managers to run $150 million in the fund’s affordable multifamily housing program. Staff recommended allocating $50 million to a joint venture among Klein Financial Corp., Steadfast Properties and Development, and the Paramount Cos. that will target mixed-income, tax-exempt bond-financed projects. They also proposed allocating $70 million to Casden Properties to form a mixed-income housing-development fund. In addition, they recommended contingent approval to allocate $30 million to The Related Cos. of California, pending further research. PCA/E&Y Kenneth Leventhal assisted.