Recoverable Grant Fund has helped CDCs jumpstart development for thousands of affordable homes
Providence, RI – July 27, 2015 – (RealEstateRama) — Rhode Island Housing today announced that the agency has approved a $500,000 grant to the Rhode Island Local Initiatives Support Corporation (LISC) for its Recoverable Grant Fund. The Recoverable Grant Fund is a revolving loan fund available to community development corporations (CDCs) for financing early predevelopment expenses. LISC has financed early-stage expenses for thousands of affordable homes since the program’s inception.
“Our partners like LISC and neighborhood CDCs play an essential role in expanding access to affordable homes for low- and moderate-income families,” said Barbara Fields, Executive Director of Rhode Island Housing. “The Recoverable Grant Fund is a great investment because it allows developments to get off the ground in the critical early stages when not all funding sources may be identified or committed yet.”
Rhode Island LISC’s Recoverable Grant Fund was founded in 1991 with a $700,000 grant from Rhode Island Housing. Since then, the Fund has provided more than $6.4 million in predevelopment assistance to more than 30 Rhode Island CDCs. These developments have leveraged over $170 million in total investment.
The Recoverable Grant Fund may be used to cover expenses such as architectural and appraisal fees.
When a development secures all financing, the assistance is repaid and made available to other eligible developers.
“We are grateful to Rhode Island Housing for their partnership in helping to build strong, healthy communities,” said Jeanne Cola, Executive Director of Rhode Island LISC. “Rhode Island Housing’s continued investment in the Recoverable Grant Fund will allow us to provide early funding to developments that are waiting to get off the ground.”
Rhode Island LISC currently has outstanding requests for predevelopment assistance for proposed developments that are expected to generate nearly $10 million in development activity.
Over the years, the fund has relied on contributions from the public sector, private companies, and philanthropic organizations to support the development of several thousand homes and a number of child care facilities across the state. Affected by the nationwide economic downturn in recent years, the Recoverable Grant Fund has been more than doubled by Rhode Island Housing’s recent $500,000 grant.
Rhode Island Housing’s Board of Commissioners approved the grant at its meeting on June 18. “The Recoverable Grant Fund has helped jumpstart several of our signature affordable housing initiatives,” said Joe Garlick, Executive Director of NeighborWorks Blackstone River Valley. “This fund allows community developers to take the first step in making major investments in our neighborhoods.”
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.
About Rhode Island Local Initiatives Support Corporation
Rhode Island Local Initiatives Support Corporation is the local affiliate of the Local Initiatives Support Corporation (LISC), a national financial intermediary dedicated to helping transform distressed neighborhoods into communities that are good places to live, work, and raise children. Rhode Island LISC provides grants, low-interest loans, and equity investments to support community development projects across the state.
Contact: Mary Kate Harrington, 401-450-1356 or mharrington (at) rhodeislandhousing (dot) org
Meaghan McCabe, 401-831-1200 or mmccabe (at) nharbor (dot) com