Providence, R.I. Housing team up to eliminate abandoned homes

A NEW INITIATIVE by Providence Mayor Jorge O. Elorza aims to combat the growing number of abandoned homes in the city, some concentrated in greater numbers in certain city neighborhoods. / COURTESY CITY OF PROVIDENCE
A NEW INITIATIVE by Providence Mayor Jorge O. Elorza aims to combat the growing number of abandoned homes in the city, some concentrated in greater numbers in certain city neighborhoods. / COURTESY CITY OF PROVIDENCE

PROVIDENCE – City officials have launched a new initiative to rehabilitate abandoned properties, in part by teaming up with Rhode Island Housing to provide low-interest renovation loans.

The EveryHome Initiative, unveiled Tuesday by Mayor Jorge O. Elorza, will attempt to use a new suite of tools focused on encouraging local businesses to rehabilitate abandoned structures. The goal is to fill all vacant homes in the next six years, according to the mayor’s office.

As of June, the city estimated it had at least 475 vacant residential structures, an inventory that was thought to be under-reported, as it depended on a voluntary registering of abandoned homes.

The program will expand an existing receivership program, which withholds vacant properties from tax sales, to promote their rehabilitation using court-approved receivers. Under the program, the court will appoint receivers who oversee the abandoned structures.

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“If neither a homeowner nor the bank takes responsibility for a vacant home, a judge can appoint a receiver who is skilled in turning these homes around,” a news release stated.

To facilitate the program, the mayor and R.I. Housing will develop a revolving loan fund, seeded initially with $3 million, which will provide small loans to receivers at lower interest rates than market rates.

The $3 million loan fund, provided through R.I. Housing, would be expected to leverage additional private sources of capital, according to the news release.

In addition, the city plans to adjust the tax foreclosure process to address vacant properties. In previous years, vacant properties were included in the city’s tax sale process, which did not guarantee rehabilitation.

“Rather than suffer this fate, the city will now divert the tax sale of properties it knows to be vacant to a buyer who is capable and motivated to fill the home.”

The city also plans to allocate $1 million in federal Community Development Block Grant funds to vacant and abandoned properties this year.

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