R.I. Housing wins $4.7M federal grant

PROVIDENCE – Rhode Island Housing was awarded a $4.7 million grant from the U.S. Treasury Department’s Capital Magnet Fund to preserve 550 apartments and homes for families across the state, Sen. Jack F. Reed, D-R.I., and Gov. Gina M. Raimondo announced Monday.

The U.S. Treasury awarded a total of $120 million through the program nationwide to 40 organizations and nonprofit housing developers. The CMF grant is part of the Treasury’s Community Development Financial Institutions Fund.

“Jobs and housing matter. Too often, there’s not enough federal help with either. That’s why I created the Capital Magnet Fund. It means Rhode Island will now have $4.7 million more to help people create jobs and find affordable housing. The governor and R.I. Housing worked hard to put together a successful application for this highly competitive grant. This is a smart investment that should put folks to work and put more working families in homes they can afford,” said Reed in a statement.

The Capital Magnet Fund requires recipients to leverage $10 of housing and economic development investments for every $1 of federal funds. Rhode Island Housing will use the resources to “help bridge a funding gap in projects” that are “ready to proceed” but needed more funding to begin.

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RIH expects the grant money will attract over $110 million in additional investment.

“Housing is an essential component of strong communities – it serves as the foundation of economic well-being for Rhode Island families,” said Raimondo in a statement. “The resources from the Capital Magnet Fund will help our continued efforts to ensure that Rhode Islanders are not burdened by unsustainable housing costs and will allow us to continue creating an environment that incentivizes residents and businesses to choose Rhode Island and help us further strengthen our economy.”

The developments will provide homes for families at a range of income levels and include families that earn from $19,500 to $51,950 a year.

Funds from the CMF can be used to finance affordable housing activities, as well as related economic development activities and community service facilities.

Chris Bergenheim is the PBN web editor.