NORTH KINGSTOWN – More than $166 million in funding is available for affordable housing efforts across the state, Gov. Daniel J. McKee announced on Thursday.
The $166 million, which comes from a variety of federally- and state-funded programs, will go toward building and preserving affordable housing throughout the state. It includes $115 million from the $250 million McKee has set aside for housing efforts from the state’s American Rescue Plan Act funds.
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“Earlier this year, I proposed, and the General Assembly passed utilizing $250 million in ARPA funds to tackle head on the housing crisis in our state,” said McKee. “Just a few short months after we signed the budget, we are here opening up a competitive funding round to get these dollars out the door and start building on that promise. The McKee-Matos Administration has made housing one of our top priorities and we are thrilled to be able to make these strategic housing investments and help Rhode Islanders as quickly as possible.”
McKee made the announcement at the Langford Estates in North Kingstown, joined by U.S. Sen. Jack Reed, Housing Secretary Josh Saal and RI Housing. The Langford Estates Part is a senior housing development which offers 40 units of senior housing. Part of the larger “Reynolds Farm,” it received $400,000 through the Site Acquisition program, which provides grants to municipalities and developers looking to transform properties into affordable housing.
“Let me state clearly: the federal funds being put to work here are from a law that some have said should never have been passed,” Reed said. “I fought for these funds because Rhode Island cannot solve our affordable housing problem without money, without change, and, without will. Sadly, some people are content with the status quo and toeing the party line when it comes to affordable housing. That type of thinking is what led to this crisis and that is why dedicating this new federal funding to housing solutions like this are necessary and overdue.”
This funding follows an announcement McKee made in March announcing the availability of $60 million for affordable housing.
“The long-term solution to the state’s housing shortage is, very simply, to build more housing,” said Saal. “This significant investment will allow us to advance our mission of fixing, building and stabilizing the statewide housing stock in a way that strengthens communities and creates a more accessible and affordable housing future for all Rhode Islanders. We look forward to reviewing proposals, activating these funds quickly and efficiently, and breaking ground on much-needed developments across the state.”
Developers can apply for multiple funding sources with one application, thanks to the “consolidated” Request for Proposal approach adopted by RIHousing in collaboration with the state and the Rhode Island Housing Resources Commission. This system removes “significant barriers” to the development process and streamlines the application and review process, said Carol Ventura, executive director of RIHousing.
“Prior to launching our first-ever consolidated funding RFP, developers would need to apply for each funding source separately, and often at different times of the year,” said Ventura. “With this second consolidated funding round, we are building off the success of the initial effort and adding to the available funding with the state’s historic investments in housing. We’re grateful to Governor McKee and state leaders for their commitment in working together to address Rhode Island’s housing crisis.”
“This streamlined process and historic funding will deliver the widespread affordable housing that Rhode Islanders have been waiting to see for years,” said Lt. Gov. Sabina Matos. “Whether you’re a multi-generational household, like my parents and grandmother, or a young family like my children and me, there will be a home for you in Rhode Island. I am grateful to work alongside all of our partners across nonprofits, business, and government who are working tirelessly to meet the housing needs of our communities.”
Applicants must submit proposals by 4 P.M. on Thursday, Jan. 12, 2023.
Sources of funding include:
- Approximately $3 million in 2023 9% Low Income Housing Tax Credits, a federal program for the development, rehabilitation and preservation of multi-family affordable rental housing.
- Tax-exempt bond financing and 4% LIHTC.
- ARPA Production Funds, available for the production or rehabilitation of income eligible rental units for households with incomes at or below 80% of Area Median Income.
- Approximately $4.5 million in HOME Program Investment Funds, available for development and rehabilitation of homes for households earning up to 80% of the Area Median Income.
- $2.1 million in Housing Trust Fund, which finances projects serving extremely low-income and very low-income families.
- $20 million as part of the Community Revitalization Program, for the acquisition and redevelopment of blighted properties in qualified census tracts to increase the development of affordable housing.
- Approximately $9 million in Acquisition Revitalization Program for residential, commercial, and public facility projects to redevelop blighted properties.
- Approximately $12 million available in Capital Magnet Fund to provide owners of existing affordable housing developments with incentives to maintain these developments as quality affordable housing.
- $20 million in Middle Income Loan Program, which finances innovative proposals that seek to develop housing affordable to households with incomes between 80% – 120% AMI.
- Approximately $3 million in funds from the Preservation Loan Fund for the preservation of existing restricted affordable housing that has completed its initial LIHTC compliance period.
- Approximately $9 million in HOME-ARP Funds to support the development of housing for Qualifying Populations.
- Approximately $9 million in Housing Production Fund for Operating Support for households either exiting homelessness or earning less than 30% AMI.
Claudia Chiappa is a PBN staff writer. You may contact her at Chiappa@PBN.com.
