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PROVIDENCE, RI – The McKee Administration, Department of Housing and RIHousing on Oct 17th, announced the opening of another competitive round of funding for the development and rehabilitation of affordable housing across the state. Of the over $60 million available, $1.7 million comes from State Fiscal Recovery Funds (SFRF), part of Governor McKee and the General Assembly’s historic investment of over $322 million in SFRF into housing and homeless programs since funds were made available by the American Rescue Plan Act of 2021.
This funding round also contains tax-exempt bonds, federal 4% and 9% Low Income Housing Tax Credits (LIHTC), and up to $30 million in State LIHTC. The State LIHTC will provide tax credit funding in equal increments over the five-year period after the project is placed in service. This is the first time that State LIHTC has been offered in Rhode Island.
"Increasing our stock and creating more affordable options are key to building a stronger economy and a healthier Rhode Island," said Governor Dan McKee. "We’ve made historic investments to address the housing crisis, and this latest round of funding will spur more production and help more Rhode Island families get on a track to success."
“This announcement is a historic moment for affordable housing development in Rhode Island as we introduce State Low-Income Housing Credits (LIHTC) for the first time,” said Interim Secretary of Housing Dan Connors. “The $30 million State LIHTC allocation will provide essential state investments to incentivize developers to create homes for our most vulnerable populations. This program will expand housing opportunities in Rhode Island by closing financing gaps for projects awarded through federal LIHTC so they can move to completion more quickly. The housing produced with these resources will increase our capacity to prevent and address homelessness, taking significant steps toward a more equitable housing landscape in Rhode Island."?
Most of the programs are focused on affordable housing development for households earning at or below 80% of the Area Median Income, and also include programs for individuals who are homeless or at risk of homelessness and those fleeing domestic violence and/or other difficult circumstances.
RIHousing and the Rhode Island Department of Housing together adopted this consolidated RFP process, wherein interested developers can apply to the multiple funding sources via one application at osa.rihousing.com. For guidelines for any of the programs below, please visit https://www.rihousing.com/rfps-rfqs/. Applications are due by 4pm on December 16, 2024.
"The consolidated funding rounds have been instrumental in the expansion of affordable housing across Rhode Island in recent years,” said Carol Ventura, Executive Director of RIHousing. “By streamlining the application process, we’re getting dollars to our developer partners faster and easier so that they can focus on the vital work of increasing housing in our communities.”
The programs included in this Consolidated Funding round are:
9% LIHTC: Rhode Island’s annual allocation is approximately $3.6 million. Applicants are encouraged to review the 2025 Qualified Allocation Plan to ensure familiarity with program requirements, but proposals must:
- Meet the required minimum set aside requirement of the Section 42 program
- Create a minimum of 20 new units
- For applications proposing preservation, 30% of the overall units in an application or 20 units, whichever is greater, must be newly created affordable homes
- As the LIHTC is a highly competitive and scarce resource, no single development may be awarded more than 40% of Rhode Island’s annual small-state minimum allocation
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 2025 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 53% of eligible bond basis and fund the balance of the construction loan with taxable debt.
Housing Production Fund (HPF): HPF is funded through state real estate transfer tax receipts. Approximately $10 million in funding for production will be available under this RFP. While preservation of existing housing is an eligible use, new production is a priority. Developments must benefit low- and moderate-income individuals and families with gross annual incomes at or below 80% of Area Median Income (“AMI”), and there is a priority for households either exiting homelessness or earning no more than 30% of AMI. Mixed income developments are allowed under the HPF program. Funding is available for rental and homeownership opportunities.
HOME Program Investment Funds (HOME Funds): RIHousing has approximately $3 million of HOME Funds. Awards will be capped at $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 capped at $1 million per project. HTF funds will be prioritized for 9% LIHTC applications.
HOME-ARP Funds: Approximately $7 million of HOME-ARP is available as capital for housing production 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, and/or (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.
Development of Affordable Housing 2 (DAH-2) Funds: The source for Development of Affordable Housing Funds is State Fiscal Recovery Funds (SFRF) funded through the American Rescue Plan Act of 2021. DAH-2 is available for new production or rehabilitation of income-eligible rental and homeownership units for households with incomes at or below 80% of AMI. Approximately $300,000 of DAH2 funds remain.
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. A minimum of 20% of the units must be affordable to households with incomes below 50% AMI. Priority is also given to projects in Areas of Economic Distress. Approximately $2 million in funds is available. Funding is available for rental housing only.
Middle Income Loan Program (MI): The purpose of the Middle Income Loan Program is to finance innovative proposals that seek to develop housing affordable to households with incomes between 80% - 120% of the 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 SFRF funding through the American Rescue Plan Act of 2021. Approximately $1.4 million in funds is available.
State Low Income Housing Tax Credit (State LIHTC): The Rhode Island Department of Housing has the authority to obligate up to $30 million of State LIHTC in FY25. The State LIHTC is a direct dollar-for-dollar offset against a taxpayer’s RI state income tax liability to be taken over a five-year period. A project must have received an allocation of federal LIHTC to be eligible for a State LIHTC allocation. The State LIHTC can be monetized in two ways, either through (i) sale to investor(s) or (ii) redemption directly with the state at $0.90 per dollar of tax credit. Funds will be awarded on a competitive basis in accordance with the program regulations at https://rules.sos.ri.gov/regulations/Part/310-10-10-1.?