PROVIDENCE – Gov. Daniel J. McKee and Secretary of Housing Stefan Pryor on Friday announced a package of housing proposals, which include a low-income tax credit, aimed at spurring housing development, creating housing opportunities for vulnerable Rhode Islanders, and supporting cities and towns.
The proposals, which will expand housing investments by an additional $29 million of State Fiscal Recovery Fund investments, include funding for a transit-oriented development program, investment in priority housing developments and housing-related infrastructure. They will also help address the long-lagging housing production rates in Rhode Island, catalyze expanded housing supply and mitigate upward pressure on rents and home purchase prices.
“Housing is essential infrastructure for communities throughout Rhode Island,” McKee said in a statement. “The increases in rents, evictions, and homelessness in recent years demonstrate the need to provide better and more affordable options to Rhode Islanders.”
The centerpiece is McKee’s proposal for the creation of a statewide low-income housing tax credit program that will provide a tax incentive for developers to expand subsidized housing options for low-income households. The program would award tax benefits to developers through a competitive process and would be capped at $30 million annually.
“Though Rhode Island’s housing challenges are significant, this tough scenario has created meaningful momentum for change. Our state can begin to turn things around with these new investments in housing development – and, through these initiatives, we can start to create new housing opportunities for Rhode Islanders at every income level,” Pryor said ina a statement.
McKee on Friday also proposed reallocating $978,755 to create a pilot initiative to support municipal efforts to address homelessness with support services such as homeless outreach, day programs, ambulance response, and other activities and municipal services to help emergency shelters succeed in local communities while continuing to expand options for Rhode Islanders experiencing homelessness.
The R.I. Department of Housing is proposing a $29 million investment of State Fiscal Recovery Funds for purposes such as the following:
- Establishing a priority projects fund: $17 million for competitive grants to address priority housing developments.
- Fund transit-oriented development: $4.9 million in grants for housing developments near transit options and for municipalities to study and implement zoning changes to up-zone parts of communities in greatest proximity to transit.
- Expanding housing-related infrastructure: $4.3 million to provide resources on a competitive basis to projects through the Rhode Island Infrastructure Bank.
- Investing in housing planning and municipal capacity: $1.4 million to create a housing-related municipal fellows program that will provide staffing capacity to municipalities that are too often understaffed as they conduct zoning, permitting and planning activities to address barriers to housing opportunity.
- Preserving affordable housing: Reallocation of $500,000 to preserve affordable housing units. These funds will allow for the purchase of deed-restricted properties entering foreclosure so that the affordability covenants will remain intact and to mitigate the loss of subsidized housing supply.
The free marketplace should determine where, what type and when housing should built in RI, not dumb politicians buying votes by stupidly spending taxpayer dollars to create communist communes. If RI politicians focused on growing our economy and improving our schools and infrastructure, the free marketplace will build the necessary housing without the government messing things up.