R.I. Housing outlines housing investments in Providence, Warwick

RHODE ISLAND HOUSING Executive Director Barbara Fields said,  “We will continue our efforts to increase and maintain the local supply of housing in order to help Rhode Island’s economy grow.” / COURTESY RHODE ISLAND HOUSING
RHODE ISLAND HOUSING Executive Director Barbara Fields said, “We will continue our efforts to increase and maintain the local supply of housing in order to help Rhode Island’s economy grow.” / COURTESY RHODE ISLAND HOUSING

PROVIDENCE – Investments in developments in Providence and Warwick are expected to create or preserve more than 230 units of housing and support nearly 150 jobs, Rhode Island Housing said recently.
The investments were approved unanimously at the agency’s Board of Commissioners meeting on Dec. 8.
For example, the board approved the taxable refinancing of $8.5 million for Hagan Manor in Providence to support the rehabilitation of 80 one- and two-bedroom apartments, helping to ensure their affordability for 40 years. The rehabilitation work is anticipated to support 97 jobs, and the investment will be made under the U.S. Department of the Treasury Federal Financing Bank – HUD HFA Multifamily Risk Sharing Loan Financing Initiative.
The board also approved a taxable loan of $4.68 million for Greenwood Terrace in Warwick, a 53-unit elderly housing development that receives Section 8 rental assistance through a Housing Assistance Payment contract. The loan also will be funded through the FFB – HUD Risk Share Initiative.
In addition, the board approved financing for Cathedral Square Apartments I in Providence, which features 100 one-bedroom units for elderly and disabled residents under a Section 8 HAP contract. The developer, Cathedral Development Group, is forming a new partnership to acquire and rehabilitate the development; 49 jobs are anticipated to be supported as a result.
The transaction includes short term tax-exempt bond financing of $11.79 million and an $11.79 million HUD fully-insured Multifamily Accelerated Process loan.
Rhode Island Housing is underwriting and will service the HUD loan, and this marks the first time Rhode Island Housing approved financing though HUD’s fully-insured Multifamily Accelerated Process, which enables the agency access to low-cost taxable financing through a Ginnie Mae security.
“Housing is not only essential to a strong economy, but vital for families and communities,” Barbara Fields, executive director of Rhode Island Housing, said in a statement. “We will continue our efforts to increase and maintain the local supply of housing in order to help Rhode Island’s economy grow.”

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