PROVIDENCE – Gov. Daniel J. McKee and state leaders announced Wednesday that the state is making $12 million available for grant opportunities to fund creation of affordable and supportive housing.
The money was allocated from the $119 million in American Rescue Plan Act funding that the legislature approved on Jan. 6. The state received $1.1 billion in total ARPA funding, most of which has not yet been allocated.
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McKee and the General Assembly leadership have said that addressing affordable housing issues is a priority for the state. The governor included a commitment of $250 million for housing in his fiscal 2023 budget proposal.
On Wednesday, McKee and leadership kicked off that initiative by announcing that the $12 million would fund the state’s Site Acquisition Program, providing grants to municipalities, nonprofit and for-profit developers, and public housing agencies so they can secure land for projects that are aimed at increasing the supply of affordable housing and homeownership opportunities across the state.
“I’m excited to be able to provide yet another critical funding tool to help Rhode Island meet the housing needs of our residents,” McKee said. “These investments will help alleviate the housing shortfall and affordability crisis while reinvigorating our state’s economy.”
Last fall, McKee filed and received approval for a supplemental budget amendment with the General Assembly on his Rhode Island Rebounds plan to invest approximately 10% of the state’s $1.1 billion ARPA funds in Rhode Island’s families, workers, small businesses and housing. Under his housing proposal, McKee’s plan included $12 million for a property acquisition grant program.
“Solutions to address Rhode Island’s affordable housing crisis will require the participation and support of numerous stakeholders working collaboratively and creatively,” said Lt. Gov. Sabina Matos. “I’m proud that the Site Acquisition Program has the support of so many community leaders and housing professionals.”
The R.I. Housing and Mortgage Finance Corp. will administer the program on behalf of the state. Program funding will be available via a request for proposals to be released next week. Applications for funding will be accepted on a rolling basis as long as funding is available.
“Simply put, the demand for affordable homes greatly outpaces the available supply in our state, which puts too many hardworking Rhode Islanders in a position of housing insecurity,” said House Speaker K. Joseph Shekarchi, D-Warwick. “We are excited that these critically needed federal funds will be put to work right here in Rhode Island to help us meet the current and future housing needs of our residents.”
Sen. Meghan E. Kallman, D-Pawtucket, said the state has made “historic progress” in the past year to address the housing crisis.
“We know, however, that housing insecurity remains an all-too-common reality for many in our communities,” said Kallman, who serves as vice chairwoman of the Senate Committee on Housing & Municipal Government. “The $12 million in grant funding being made available through the Site Acquisition Program will help our state realize sorely needed affordable and supportive housing developments. It will help us ensure that everyone who calls Rhode Island home has a home.”
A maximum of $1 million will be awarded to selected projects and at least a 30-year deed restriction enforcing affordability and income requirements will be recorded on all properties assisted with SAP funds. Upon release of the program RFP, program guidelines, details on how to apply and additional information will be available online at www.rihousing.com/rfps-rfqs.
The governor has requested an additional $13 million in ARPA State Fiscal Recovery Funds as part of his fiscal 2023 budget proposal for the property acquisition grant program, which, if approved by the General Assembly, would bring the total funding available for the program to $25 million.
Cassius Shuman is a PBN staff writer. Contact him at Shuman@PBN.com. You may also follow him on Twitter @CassiusShuman.
