Awards will leverage other funding sources to support developments with more than 160 affordable units
Providence, RI – August 21, 2015 – (RealEstateRama) — Rhode Island Housing’s Board of Commissioners today approved more than $2.3 million in new HOME Investment Partnerships Program funding for six proposed affordable housing developments and an additional $350,000 for a previously funded affordable housing development. The awards are expected to leverage nearly $40 million in other public and private funding sources to support the construction and rehabilitation of more than 160 units in communities across Rhode Island.
“The federal HOME program is one of our most effective tools for developing affordable homes and investing in Rhode Island,” Barbara Fields, Executive Director of Rhode Island Housing.
“Rhode Island Housing has invested $92 million directly into the state’s economy through the HOME program over more than two decades. Those investments have attracted millions more in other public and private capital, and have provided new homeownership and rental opportunities for thousands of Rhode Island families.”
The U.S. Department of Housing and Urban Development’s (HUD) HOME program provides gap financing for the acquisition, rehabilitation and new construction of affordable homes and rental apartments. HOME funds serve Rhode Islanders earning no more than 80 percent of HUD’s Area Median Income (AMI).
Rhode Island Housing administers HUD’s HOME Program for the state of Rhode Island. Since 1992, Rhode Island Housing has committed $92 million for the production of 4,634 affordable homes in 600 developments through the HOME Program.
Rhode Island Housing received 22 proposals in response to its December 2014 Request for Proposals for the first round of FY2015 HOME funds. The proposals were evaluated by Rhode Island Housing’s HOME Program Advisory Committee using HUD’s requirements for HOME funding and an objective scoring system.
The funding of up to $2,380,183 in HOME awards will allow six proposals representing a total investment of more than $42 million to move forward. This round of HOME funding will directly support 47 rental and two homeownership opportunities. The six proposed developments that received funding are expected to include the construction and rehabilitation of 112 affordable homes which are not directly funded by the HOME Program, for a total of 161 new and rehabilitated units. In addition, one previously funded HOME development individuals is being awarded an additional $350,000 to address project cost overruns. This round of funding recipients includes:
? East Bay Community Action Program (EBCAP) received $475,500 for transitional housing at locations in East Providence, Bristol and Warren. The proposal includes the rehabilitation of three 3-family properties that EBCAP owns and operates as transitional housing with supportive services for homeless families.
? House of Hope Community Development Corporation was awarded $345,000 for the acquisition and rehabilitation of a vacant two-family home. The property will be rented as two affordable three-bedroom units in Norwood area of Warwick.
? A conditional award of up to $500,000 was approved for Church Community Housing and Lucy’s Hearth for the acquisition and renovation of a transitional housing and supportive services facility in Middletown. Additional cost estimates will be reviewed by staff prior to finalizing the dollar amount of the award.
? NeighborWorks Blackstone River Valley received $500,000 to supplement its Greenridge rental development in Burrillville. The application is for eleven HOME units for very lowincome households, located within a larger tax credit development that has 96 units across multiple sites.
? ONE Neighborhood Builders was awarded $309,764 for the acquisition, rehabilitation and new construction of Amherst Gardens, which includes 36 rental units across 13 properties in Providence. Ten HOME units are proposed, including two units reserved for chronically homeless households.
? SWAP, Inc. was awarded $249,919 for the acquisition of two vacant lots and the new construction of one duplex and one single-family home, located respectively on Searle Street and Norwich Avenue in Providence.
? House of Hope Community Development Corporation was awarded an additional $350,000 in HOME funding for the acquisition and rehabilitation of a historic property in Warwick to provide 10 affordable apartments for homeless individuals.
An additional $1.8 million is available for a second funding round this fall.
“With this HOME award, we are now able to move forward with the rehabilitation of what will soon be Amherst Gardens,” said Frank Shea, Executive Director of ONE Neighborhood Builders.
“We appreciate Rhode Island Housing’s support of this development which will be key to our continuing efforts to rehab foreclosed and abandoned properties for families in Olneyville.”
About Rhode Island Housing
Together with its partners, Rhode Island Housing works to ensure that all people who live and work in Rhode Island can afford a healthy, attractive home that meets their needs. Rhode Island Housing uses all of its resources to provide low-interest loans, grants, education and assistance to help Rhode Islanders find, rent, buy, build and keep a good home. Created by the General Assembly in 1973, Rhode Island Housing is a privately funded public purpose corporation.
Contact: Mary Kate Harrington, 401-450-1356 or mharrington (at) rhodeislandhousing (dot) org
Meaghan McCabe, 401-831-1200 or mmccabe (at) nharbor (dot) com