Building Homes Rhode Island

In November 2016, voters approved Question 7, Housing Opportunity Bonds - $50 million. 

These funds will support the construction and preservation of affordable housing, support urban revitalization and blight remediation. The State will use $40,000,000 to develop and implement affordable housing opportunity programs through the redevelopment of existing structures and/or new construction. The remaining $10,000,000 will be used to provide funding to develop and implement programs for the improvement of properties that are blighted or in need of revitalization, including residential and commercial properties and public and community spaces.

Funding from past affordable housing bonds has been used to create over 1,900 affordable homes and apartments for families, seniors and veterans in 31 communities across Rhode Island.

In 2012, the State’s voters approved a resolution allowing for “Rhode Island to issue general obligations bonds, refunding bonds and temporary notes in an amount not to exceed twenty-five million dollars ($25,000,000) for affordable housing”. The HRC is now working on updated regulations for the Building Home Rhode Island program to begin accepting applications for the new $25,000,000 bond.

Summary Accomplishments

To date, this program has created affordable homes for 1261 households throughout the State. All units are guaranteed to remain affordable for a minimum of 30 years.

Funds were used in conjunction with various other State and federal resources to maximize its effectiveness. Matched funds were expected to generate approximately $450,000,000 in additional investment. The State met this target with each State dollar invested being matched/leveraged by approximately $9 of federal, private and other sources.

A recent analysis of residential building permits, conducted by HousingWorksRI, revealed that construction activities supported by BHRI accounted for more than half (53%) of the total estimated cost of residential construction permitted in Rhode Island from 2007-2010.

The specific number of jobs impacted by the BHRI program is uncertain. However, based upon data outlined above, a significant impact on the residential construction industry was realized. In addition, those persons employed by Community Development Corporation, housing developers/managers, real estate professionals and others involved in these projects were also positively impacted.

Distribution Process

The Housing Resources Commission prides itself on the fair and open competitive process it used to distribute the available funds. The State held 8 highly-competitive funding rounds over a four year period.

Once applications were received, Rhode Island Housing and Office of Housing and Community Development, Housing Resources Commission staff reviewed proposals for compliance with program requirements and in accordance with threshold criteria established by the regulations. Rhode Island Housing staff completed underwriting of projects and prepared recommendations, summary sheets and presentation materials for use by a Distribution Committee.

All proposals, accompanied by a review/scoring guidance materials, were provided to this funding Distribution Committee comprised of individuals and agencies with expertise in housing and community development. The Chair of this Distribution Committee was appointed by the HRC Chair. The broad membership of the funding committee reflected the inclusive policies of the BHRI program, as promoted by the HRC. The Committee contained representation from banking institutions, realtors, community development corporation representatives, Local Initiatives Support Corporation (LISC) and other community stakeholders.

The Committee reviewed each project in detail and developed award recommendations which were made to the full Housing Resources Commission (HRC). The HRC reviewed projects and determined if approval or revision of recommendations was necessary.

It should be noted the distribution process for BHRI funds was coordinated with State Neighborhood Opportunities Program (NOP) and other resources to maximize efficiency and impact.

The program assisted in the rehabilitation of existing, substandard units (rehabilitation and/or conversion) as well as development of additional housing structures (new construction). Funds were focused on the rehabilitation of foreclosed and/or abandoned properties. Projects were developed for general populations, as well as specialized populations such as veterans, elderly and those experiencing homelessness.