McKee Administration Receives 75 Applications for Latest Round of Housing Production and Preservation Funding Published on Friday, January 26, 2024 PROVIDENCE, RI – Governor McKee, the Department of Housing, and RIHousing announced the completion of the Request for Proposals (RFP) process for the third round of consolidated funding for housing programs. This phase of funding represents more than $90 million to support more housing production statewide. “This round of funding is another example of the work getting done with the historic investment we’ve made in housing,” said Governor Dan McKee. “Creating more housing means Rhode Islanders have more affordable places to live and helps make our state a more attractive place to work, live, and stay. We’re seeing important momentum around new development, and we’ll continue to see new projects get going thanks to this funding that will change lives.” This third round of funding, which will distribute more than $90 million in awards, includes $65 million in State Fiscal Recovery Funds (SFRF), part of the Governor and General Assembly’s historic $321 million investment in housing from the American Rescue Plan Act. More than $159 million of that historic package has been dedicated to housing development financing activities expected to be fully awarded by May 2024. 75 applications were submitted in response to the RFP, requesting more than $192 million over 14 programs that fund new housing construction, the preservation of existing units, and gap financing for projects in progress that would not be able to finish without it. With over $90 million available in awards, the number of applications received reflects the high demand for resources to build and preserve housing in Rhode Island. The requests for funding span across the state, representing projects in 21 of Rhode Island’s 39 municipalities. “When proposals from this round are selected and funded, we will utilize the last of the American Rescue Plan dollars designated for housing production,” said Secretary of Housing Stefan Pryor. “We are grateful to our partners at RIHousing for working to ensure that these resources are being spent expeditiously on projects that will bring quality affordable housing to Rhode Islanders. We also thank the numerous developers who have brought forward strong proposals through their vision, creativity, and commitment. The overwhelming interest in these funds underscores the need for further investment through a $100 million housing bond as proposed by Governor McKee.” The $90 million-plus available for these awards combines SFRF with other funding sources made available by RIHousing, including Low-Income Housing Tax Credit (LIHTC) equity. LIHTC is the principal federal program for the construction and rehabilitation of affordable apartments; RIHousing allocates these tax credits to the apartments’ developers. The tax credits are a dollar-for-dollar credit against federal tax liability, which attracts further private investment to support housing initiatives. "The number of applications submitted in this application round will result in hundreds of affordable homes being developed and preserved across our state,” said Carol Ventura, CEO of RIHousing. “RIHousing will continue to provide support and resources to our development partners so that we can increase the supply of affordable homes in our state.” The 75 applications are currently being reviewed by the Department of Housing and RIHousing. RIHousing expects preliminary funding approval for the chosen developments in May. Though not every submission will receive funding, the millions from this round will add to the funds previously awarded and increase the number of new and preserved housing units Rhode Island has already projected to produce, another step in addressing Rhode Island’s ongoing housing crisis. ###