US mutual life insurer New York Life's three-year impact investment initiative will focus on supporting small businesses, affordable housing, and community development to support underserved and undercapitalised communities and address the racial wealth gap in the US.

Since it was announced in April 2021, it has committed over $200 million of a total $1 billion, according to the investor.

In July 2022, it announced a $50 million investment to support the preservation of affordable housing rental properties via an equity investment with IMPACT Community Capital.

The investment will provide short-term bridge loans to borrowers and owners of affordable housing seeking to preserve the properties' affordability status.

The underlying properties will be nearing the expiration of affordable rent restrictions, which place the properties at risk of becoming market-rate rentals.

"This investment affords us the opportunity to partner with an established market participant and make an immediate positive impact in the affordable housing sector," said Martin King, managing director and head of impact investments at New York Life, in a press release.

"New York Life's impact investment initiative is focused on delivering meaningful societal impacts and generating market returns to help build and sustain positive economic outcomes in underserved and undercapitalised communities over the long term. As an asset class, affordable housing has a strong property performance history."

Owned by a group of life insurers, IMPACT Community Capital invests in affordable housing and has stated a commitment to social and racial equity.

The investment follows New York Life's initial impact investment initiative commitment of $150 million to Fairview Capital in support of diverse and emerging fund managers and hundreds of small businesses.