Rhode Island Invests $27.2 Million in Affordable Housing

Categories: Rhode Island Business NewsRhode Island News

Community efforts in Rhode Island to enhance affordable housing.

News Summary

Rhode Island has dedicated $27.2 million in low-income housing tax credits for six affordable housing projects, alongside $3.5 million through the Community Development Block Grant program. This marks the state’s largest investment in affordable housing in a single year, aiming to address the urgent need for more affordable homes as homelessness rises. Newport County will notably receive $1.5 million to support housing developments. Governor Dan McKee emphasizes the importance of these investments for creating vibrant communities and improving living conditions amidst growing housing challenges.

Rhode Island has announced a significant financial commitment to enhance affordable housing across the state, designating $27.2 million in low-income housing tax credits for six projects aimed at fostering affordable housing initiatives through private developers. Alongside this, over $3.5 million will be allocated through the Community Development Block Grant program to bolster housing projects in various communities.

This funding marks the state’s largest single-year investment in affordable housing through the Community Development Block Grant program, reflecting a concerted effort to address the pressing need for affordable housing in Rhode Island. Among the beneficiaries, Newport County will receive a total of $1.5 million, with each of the three communities – Portsmouth, Middletown, and Jamestown – being awarded $500,000 to support the development of housing projects.

Investment in Specific Projects

The targeted investments aim to create or renovate nearly 1,000 affordable housing units throughout Rhode Island. For instance, Portsmouth’s Ade Bethune House will utilize these funds to support 54 housing units. Similarly, Middletown’s West House II project, which also consists of 54 units, is set to benefit from this financial infusion. Additionally, Jamestown’s Housing Authority plans to upgrade bathrooms in 35 housing units with the granted funds.

State Commitment to Affordable Housing

Governor Dan McKee has emphasized that these investments are pivotal in building stronger, more vibrant communities in Rhode Island by enhancing access to safe and affordable homes. During Affordable Housing Month, the governor reiterated the state government’s commitment to long-term investment in housing solutions, which aims to alleviate the pressures caused by the state’s rising unhoused population. Reports indicate that the number of unhoused individuals has surged to at least 2,442 as of January 2024, representing a 35% increase from the previous year. This surge underlines the urgent need for more affordable housing options in the state.

Community Reflection and Housing Needs

Deborah Goddard, the Secretary of Housing, has highlighted the dedication of communities in Rhode Island, as reflected in the quality of applications submitted for this funding. The flexibility of these funds has also been praised, enabling diverse community needs to be addressed effectively. Advocates are increasingly urging state leaders to not only maintain but also expand the housing stock and subsidize the rental market to keep pace with the growing demand for affordable housing.

Current Housing Landscape

The challenges surrounding affordable housing are significant. The National Low Income Housing Coalition report reveals that Rhode Island currently has only 47 affordable rental homes for every 100 extremely low-income households. This statistic underscores the critical gap in housing availability for the most vulnerable populations in the state.

In summary, Rhode Island’s recent allocation of funds aims to address urgent housing needs and reflects an ongoing commitment to improving the living conditions for many residents. As the state grapples with increasing demand and homelessness, these investments are a vital step towards creating a more equitable living environment where every resident can access safe and affordable housing.