Reed Announces $6.4M Federal Capital Magnet Fund Grant to Finance Affordable Housing in RI
Senator Reed led effort to create the Capital Magnet Fund, which will help RIHousing preserve and expand affordable housing
WASHINGTON, DC – Today, U.S. Senator Jack Reed announced a new $6.4 million federal grant for RIHousing to finance the development 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, the Capital Magnet Fund, based on the first round of awards, has already leveraged private and public investment to create over 13,300 affordable housing units and the creation of nearly 16,000 jobs while generating nearly $1.8 billion in private and public leverage.
Today, Reed commended RIHousing for winning this competitive $6.4 million Capital Magnet Fund grant from Treasury’s Community Development Financial Institutions (CDFI) Fund, which builds on a prior $4.7 million Capital Magnet Fund grant RIHousing received last year.
RIHousing was one of 38 organizations nationwide to be selected by Treasury, which is awarding a total of $142.9 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 put folks to work and keep and put more working families in homes they can afford,” said Senator Reed, a senior member of the Banking Committee, which oversees federal housing policy, and the Ranking Member of the Appropriations Transportation, Housing and Urban Development, and Related Agencies (THUD) Subcommittee, which oversees federal spending for community development and housing programs. “I know this money will be put to work helping working families and making Rhode Island a better place to live, work, and do business. I will continue to oppose President Trump’s efforts to eliminate the Capital Magnet Fund.”
The Capital Magnet Fund requires recipients to leverage $10 of housing and economic development investments for every $1 of federal funds.
“This is a tremendous achievement for the corporation given the stiff competition from across country. Not only did we win an award, but it is a significant increase from our last award which we have already invested to support the development and preservation of nearly 300 homes in Pawtucket, Newport and Coventry,” said Barbara Fields, Executive Director of RIHousing.
Between its two Capital Magnet Fund grants, Rhode Island Housing estimates that a total of 1,800 affordable housing units will be supported, helping to create more than 850 jobs.