R.I. awarded more than $8M in housing grants

U.S. SENS. Sheldon Whitehouse, left, and Jack Reed, right, announced more than $8 million in housing grants for Rhode Island in a press release along with U.S. Reps. James R. Langevin and David N. Cicilline.
U.S. SENS. Sheldon Whitehouse, left, and Jack Reed, right, announced more than $8 million in housing grants for Rhode Island in a press release along with U.S. Reps. James R. Langevin and David N. Cicilline.

PROVIDENCE – Providence and East Providence received more than $8 million in housing grants, according to a news release from U.S. Sens. Jack Reed and Sheldon Whitehouse and U.S. Reps. James R. Langevin and David N. Cicilline.

The funding, awarded by the U.S. Department of Housing and Urban Development, will help cities improve housing and expand economic opportunity in their communities; help homeless residents find shelter and access services; fund local programs and partnerships with nonprofit organizations that supply affordable housing; and support state, local and nonprofit organizations that provide housing services to members of the community diagnosed with HIV/AIDS.
“This is a flexible source of federal funding that will help create jobs and boost economic development in Providence and East Providence. It may be used for a range of initiatives to upgrade our infrastructure, increase affordable housing, improve public facilities and partner with nonprofits to address some of the greatest community needs,” Reed said in a statement.
Said Whitehouse, “Rhode Islanders are still dealing with a housing downturn that left many homeowners owing more than their house is worth, and renters all over the state are seeing their rents climb much faster than their paychecks. That’s why federal investment in affordable housing and supportive services is so important. These funds will provide much-needed help to Rhode Island communities, and I congratulate all of today’s grant recipients.”

Cicilline said the funding will help end homelessness. He and Langevin said the funding will provide low-income families with affordable housing options.
Providence and East Providence have been awarded $5,028,707 and $673,082, respectively, from HUD’s Community Development Block Grant program, which aims to grow affordable housing and retain and expand local businesses in urban communities. The CDBG program gives local governments flexibility to use the funds for community development purposes.

Providence also will receive $1,151,171 from the Home Investment Partnerships program, which funds housing initiatives, often in partnership with nonprofit housing organizations. Grantees may use the funds for direct rental assistance to low-income residents; to build new affordable housing stock; or to rehabilitate existing housing for affordable rents or homeownership.

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And Providence will receive $419,904 from the Emergency Solutions Grants program and $867,427 from the Housing Opportunities for Persons With AIDS program.
The federal government considers a household that devotes more than 30 percent of its income to mortgage or rent payments to be “cost burdened,” meaning it risks sacrificing spending on other essentials like food, clothing, medical care or transportation. According to an analysis of U.S. Census data by the nonprofit housing coalition HousingWorks RI, more than one-third of Rhode Island households are cost burdened, and 15 percent are considered “severely” cost burdened, spending more than half their income on a mortgage, rent and utilities.

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