The competitive funding round is for multiple sources of affordable housing financing, including over $65 million in State Fiscal Recovery Funds
PROVIDENCE, RI – Governor Dan McKee, the Department of Housing, and RIHousing today announced the availability of over $90 million in funding for programs that support the development, preservation and operation of affordable housing in Rhode Island. Of the 13 programs included in this round of funding, five are funded with more than $65 million in State Fiscal Recovery Funds, part of the Governor’s and General Assembly’s historic investment of over $321 million in housing across the state.
“We’re doubling down on our efforts to invest in affordable housing across Rhode Island,” said Governor Dan McKee. “These dollars will not only help us build new units of housing and create good paying construction jobs, but they will also help our state continue to be an attractive place to live, work, and raise a family.”
The programs fund a range of affordable housing development and preservation activities. Most of the programs focus on housing for households with income at or below 80% of the Area Median Income, including supportive housing for persons experiencing homelessness or at risk of homelessness.
“This set of investments will further catalyze housing production in Rhode Island, helping spur the creation of affordable homes across our state,” said Housing Secretary Stefan Pryor, who serves as Chair of RI Housing’s Board of Commissioners. “This funding round will allocate the last of the American Rescue Plan dollars that are earmarked for housing production in Rhode Island, putting these remaining federal resources into action,” Pryor continued. “With the inclusion of our newest programs — the Priority Projects Fund and Transit-Oriented Development Fund — we are introducing new ways of serving Rhode Island’s most vulnerable communities and of fostering residential growth near key transit hubs. We thank Governor McKee, Speaker Shekarchi, Senate President Ruggerio, and our Congressional delegation for making these investments possible.”
RIHousing, in partnership with the State Department of Housing, adopted a consolidated funding application that interested development partners can use to apply for multiple funding sources. Applications will be due before 4 p.m. EST on January 16, 2024.
“We look forward to awarding an additional $90 million in funding for affordable housing efforts in Rhode Island,” said Carol Ventura, CEO of RIHousing. “The Consolidated Funding RFP has streamlined the application process for our partners. This has allowed us to get critical dollars more quickly to development partners, expediting the construction and preservation of affordable homes in our state.”
The 13 programs included in this Consolidated Funding round are as follows:
2024 9% Low-Income Housing Tax Credit (LIHTC): $3.3. million in funding has been allocated to LIHTC, though no single development may be awarded more than 40% of Rhode Island’s annual small-state minimum allocation. Funding is available for rental housing only. Applicants are encouraged to review the 2024 Qualified Allocation Plan [rihousing.com] which outlines the federal and state requirements of the LIHTC program.
Tax Exempt Bonds and 4% LIHTC: RIHousing has traditionally accepted applications for bond financing on a rolling basis and will continue to do so. Completion of the consolidated application will be considered an application for tax exempt bonds. For proposals seeking tax exempt bonds and 4% LIHTC, applicants are encouraged to review the 2024 Qualified Allocation Plan to ensure familiarity with program requirements and priorities. Funding is available for rental housing only. RIHousing reserves the right to limit Tax Exempt allocations to approximately 55% of eligible bond basis and fund the balance of the construction loan with taxable debt.
Development of Affordable Housing 2 (DAH2): The source for Development of Affordable Housing Funds is State and Local Fiscal Recovery Funds (“SLFRF”) funded through the American Rescue Plan Act of 2021. Approximately $18 million of DAH2 funds is available for new production or rehabilitation of income eligible rental and homeownership units for households with incomes at or below 80% of AMI.
HOME Program Investment Funds (“HOME” Funds): RIHousing has approximately $3 million of HOME Funds. Awards will be limited to $1 million per project. HOME funds will be prioritized for 9% LIHTC applications.
Housing Trust Funds (HTF): RIHousing has approximately $3 million of HTF Funds. Awards will be limited to $1 million per project. HTF funds will be prioritized for 9% LIHTC applications.
Community Revitalization Program (CRP): The source for CRP funds is SLFRFs through the American Rescue Plan Act of 2021. Approximately $3.6 million in CRP funds is available to finance the acquisition and redevelopment of blighted properties in qualified census tracts to increase the development of affordable housing. Projects may include commercial or community spaces that are ancillary to the housing and serve residents of affordable housing. Any residential development under this program must serve households at or below 80% of AMI. Commercial and community spaces are an allowable expense only if they are ancillary to eligible residential housing.
Acquisition Revitalization Program (ARP): ARP, a statewide program, is available for residential, commercial, and public facility projects to redevelop blighted properties; 75% of the funding will be set aside for urban communities, as defined at RIGL Sec.42-64-13.1(b)(5). Household incomes for residential or mixed-use properties funded through ARP are limited to 120% of AMI. Approximately $3.6 million in funds is available.
Capital Magnet Fund (CMF): The CMF is intended to provide owners of existing affordable housing developments with incentives to preserve these developments as quality affordable housing. CMF is also available as a source for newly created affordable housing opportunities, however preservation is a priority. Priority is also given to projects in Areas of Economic Distress and developments serving households below 50% of AMI. Approximately $8.6 million in funds is available. Funding is available for rental housing only.
Middle Income Loan Program: The purpose of the Middle Income (MI) Loan Program is to finance innovative proposals that seek to develop housing affordable to households with incomes between 80% – 120% of AMI. The program addresses the affordable housing needs of households who are increasingly caught in the gap between rising housing costs and ineligibility for other traditional state and federally financed affordable housing. The source for MI Funds is SLFRF funded through the American Rescue Plan Act of 2021. Approximately $12.5 million in funds is available.
Priority Projects Fund (PPF): A total of $27 million has been allocated to the PPF. The purpose of the PPF is to provide funding for the development of new supportive housing and multifamily units for extremely low-income and vulnerable Rhode Islanders. PPF must be used to create new permanent supportive housing or affordable housing for extremely low-income households, individuals transitioning out of state care or vulnerable persons as outlined in the Program Guidelines.
Transportation Oriented Development (TOD) Fund: A total of $4 million has been allocated to the TOD fund for the development of housing in an existing TOD district at a density of no less than 10 units per acre, and where at least 10% of the units are deed restricted as affordable for households earning at or below 80% of AMI. For purposes of this program, a TOD District is a zoning district designated by the municipal zoning code as a “Transit Oriented Development District” due to its relationship to public transit. [MH(1] [HK2]
HOME-ARP Supportive Service: Approximately $3 million of HOME-ARP is available to provide supportive services to developments providing housing for Qualifying Populations (QPs). QPs are defined as (i) individuals or households who are homeless or at risk of homelessness as defined under McKinney Vento, (ii) are fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking or human trafficking, as defined by HUD, (iii) Other Populations where providing supportive services or assistance under section 212(a) of NAHA (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability. A separate HOME-ARP Supportive Services RFP will also be available for proposals that are not simultaneously seeking capital funds for development.
Housing Production Fund: Extremely Low Income for Operating Support (HPF-ELI): Approximately $3.8 million of HPF-ELI is available for operating support for households either exiting homelessness or earning less than 30% of AMI. The subsidy will cover the difference between actual rent and the amount necessary to operate the unit.
To view the full Request for Proposals, visit www.rihousing.com/rfps-rfqs [rihousing.com].
This project was supported, in whole or in part, by federal award number SLFRP0136 awarded to the State of Rhode Island by the U.S. Department of Treasury.