$79 Million in Recovery Funds Released Today for Rhode Island Housing Assistance
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$79 Million in Recovery Funds Released Today for Rhode Island Housing Assistance

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WASHINGTON, DC – February 25, 2009 – (RealEstateRama) — U.S. Senator Jack Reed (D-RI) today announced that the U.S. Department of Housing and Urban Development (HUD) is making over $79 million available to Rhode Island through the American Recovery and Reinvestment Act of 2009.  This legislation, which Senator Reed supported, includes $13.61 billion for HUD projects and programs nationwide.  Approximately $10 billion, or 75 percent, was allocated to recipients today, one week after President Obama signed the economic recovery package into law.

“The Obama Administration is following through on its pledge to get this money out swiftly and effectively.  I am pleased Rhode Island’s cities and housing authorities will receive this critical federal funding to put people back to work building and renovating affordable housing,” said Reed, a member of the Banking Committee, which oversees federal housing policy.  “This funding will help keep people in their homes and stabilize neighborhoods that have been hit hard by the economic downturn.  It will also help make public housing more energy efficient, which will help save families on their energy bills and reduce our dependence on foreign oil.  Releasing this round of funding is a positive step toward strengthening our communities, improving our housing outlook, and bolstering the local economy.”

The funding announced today by Reed, who has been nationally recognized for championing affordable housing through his efforts to successfully preserve the Low-Income Housing Tax Credit (LIHTC), is primarily formula-based.  The remaining 25 percent of the funds, which will be competitively awarded later, will be used to build on President Obama’s announced priorities of mitigating the destabilizing effects of foreclosures on our communities and creating green jobs.

Rhode Island will receive a total of $79,089,379 from this allocation of HUD funding, including:

Project-Based Rental Assistance: $36,561,674
This funding invests in Section 8 project-based housing contracts and will enable owners to undertake much-needed project improvements to maintain the quality of this critical affordable housing.

Public Housing Capital Fund Program: $18,856,530
This funding will enable local public housing agencies to improve the state’s affordable housing infrastructure.

HOME Program/Tax Credit Assistance Program (TCAP): $11,933,403
Funded under HUD’s HOME Program, TCAP grants will help State Housing Finance Agencies kick-start the production of stalled affordable rental housing projects that rely on Low-Income Housing Tax Credits.  These agencies will distribute the funds competitively and give priority to housing projects that can begin construction immediately.

Homelessness Prevention: $6,977,808
Most of this funding will go quickly and directly into the economy of local communities, as the funds will be used to pay housing and other associated costs in the private market. The breakdown of the funding in Rhode Island will go to:

• State: $3,282,670
• Providence: $2,303,402
• Pawtucket: $845,934
• Woonsocket: $545,802

Community Development Block Grant Program (CDBG): $4,559,776
The Community Development Block Grant (CDBG) program enables local governments to target their own community development priorities. Most local governments use this investment to rehabilitate affordable housing and improve key public facilities – helping to stabilize communities and create jobs locally.  The breakdown of the funding in Rhode Island will go to:

• Providence: $1,505,678
• State: $1,399,061
• Pawtucket: $552,930
• Woonsocket: $356,744
• Cranston: $286,946
• Warwick: $243,030
• East Providence: $215,387

Native American Housing Block Grant (IHBG): $200,188
Tribal entities will use this funding for energy efficient modernization of and renovation of housing maintained by Native American housing programs.

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