Reed Announces $5.5M to Finance Affordable, Sustainable Housing in RI
PROVIDENCE, RI – Today, U.S. Senator Jack Reed announced a new $5.5 million federal grant for RIHousing to finance the development, construction, and preservation of affordable housing. These federal funds will help attract additional private and public investment to create and support hundreds of jobs.
Senator Reed led the effort to create the Capital Magnet Fund in 2008 to support community development financial institutions and non-profit housing developers that increase investment in affordable housing and economic development activities or community service facilities, such as daycare centers or workforce development centers. According to the U.S. Treasury Department, since Reed’s law was enacted, the Capital Magnet Fund has awarded over $565,740 million to Community Development Financial Institutions (CDFIs) and qualified non-profit organizations, resulting in over $5.65 billion in public and private investment.
Today, Reed commended RIHousing for winning this competitive $5.5 million Capital Magnet Fund grant from Treasury’s Community Development Financial Institutions (CDFI) Fund, which builds on $11.1 million in Capital Magnet Fund grants RIHousing received in prior years.
RIHousing was one of 48 organizations nationwide to be selected by Treasury, which is awarding a total of $175.35 million this week through the program.
“I created the Capital Magnet Fund to expand access to affordable housing in a way that creates jobs and builds stronger communities. I am thrilled Rhode Island Housing is receiving another major award to keep and put more working families in homes they can afford while also providing more opportunities for work,” said Senator Reed, a senior member of the Banking, Housing, and Urban Affairs Committee, which oversees federal housing policy. “I know this money will be put to work by RIHousing and their community partners. And we must continue working together to expand affordable and sustainable housing opportunities.”
The Capital Magnet Fund requires recipients to leverage $10 of housing and economic development investments for every $1 of federal funds.
“We are very grateful for the award of these funds, especially given the competitive nature of this program,” said Carol Ventura, Executive Director of RIHousing. “Every dollar of financing received goes a long way to ensuring Rhode Islanders have a roof over their heads, individuals working in the construction and allied fields remain employed, neighborhoods are revitalized, and our state is made stronger.”
Between its three Capital Magnet Fund grants, RIHousing estimates that a total of 2,322 affordable housing units will be supported, helping to create more than 1,688 jobs.
The 48 awardees were selected by Treasury from 137 applications this year, with requests for federal funding totaling over $642.2 million. More information on this year’s awards is available here.