McKee Proposes Unprecedented $250 Million for Housing
Wednesday, January 19, 2022
Rhode Island Governor Dan McKee in his State of the State address on Tuesday rolled out a $250 million housing proposal.
It would be the largest segment of the state's $1.1 billion in American Rescue Plan Act funds.
“It’s time to come together to make a once-in-a-generation investment in housing in Rhode Island,” said McKee. “For Rhode Island to be an attractive place to live, work, and raise a family, we must address the availability and quality of housing – that means everything from providing supports to those experiencing homelessness, to increasing affordable housing, to ensuring we build more workforce housing for our middle-class families. The moment of opportunity is there – let’s make it happen.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe median price of a single-family home in Rhode Island is now $375,000.
Housing Advocates React
Cortney Nicolato, President and CEO of the United Way of RI, said in response to the proposal, "Any investment focused on the development and revitalization of safe and affordable housing is important, but it is imperative that the investment meet the need."
Nicolato has been one of the leading advocates in the state calling on a massive movement to address the housing crisis.
"Our state’s housing crisis is significant and must be a priority in the budget. But just as important, the investment needs to combine with transformational change in the systems surrounding housing as a whole. I look forward to reviewing the budget in greater detail later this week,” added Nicolato.
Last fall, Nicolato was one of the nonprofit leaders saying the state needs to invest $500 million.
“Significant investment into affordable housing is critical for both our state’s economic growth and for our ongoing recovery from the public health crisis caused by COVID -19. The Governor‘s proposal recognizes that the problem impacts many Rhode Islanders, particularly our lower-income workers," said Brenda Clement, Director of HousingWorks RI.
"When considering the Governor‘s budget, we urge the General Assembly to add not only more funding to address this multi-faceted problem but also to address long-standing regulatory and zoning barriers that are restricting the development of affordable homes,” said Clement
McKee's Housing Proposal includes:
Investing in Development
McKee is calling for an investment of $90 million in project financing to create and preserve approximately 1,500 affordable housing units for households earning up to 80 percent of the area median income (approximately $63,000 for a three-person household in most parts of the state).
McKee also recommends establishing a $25 million grant program for the acquisition of properties to be redeveloped into affordable and supportive housing, as well as allocating $10 million to increase developers’ ability to get projects underway.
Recognizing that the State must "increase the housing supply at varying price points to address increasing demand," McKee in his proposal calls for using $20 million to support workforce housing for Rhode Island families.
In addition to developing new units and preserving existing ones, the state must boost the potential of vacant and blighted properties and invest in critical home repairs in communities that have been disproportionately impacted by the pandemic, said McKee.
McKee’s proposal calls for $25 million to be made available to redevelop these properties for the express purpose of creating housing and community/commercial spaces that satisfy community needs, as well as supporting critical home repairs.
Down Payment Assistance
Homeownership is one of the most important ways to build generational wealth, yet Rhode Island has one of the lowest homeownership rates in the country, in part because many households cannot afford the down payment, said McKee.
To bring homeownership within reach of more Rhode Islanders, McKee proposes an allocation of $50 million to provide $17,500 in down payment assistance to first-time homebuyers.
Homelessness Assistance
McKee's proposal calls for spending $21.5 million to assist individuals and families experiencing homelessness or housing instability. The funding supports both operating subsidies for extremely low-income housing units and services for people transitioning from homelessness to housing, including individuals transitioning out of the Adult Correctional Institutions.
The Governor’s plan also includes $5 million to increase shelter capacity for individuals and families experiencing homelessness.
Related Articles
- RI Median Housing Price in RI Increased 12.3% in 2020
- Shekarchi’s Law Firm Tied To Dozens of Eviction Hearings, Raises Concerns as RI Faces Housing Crisis
- United Way’s Nicolato on Supporting All 7 Bonds — And Affordable Housing Most Importantly
- Shekarchi’s Affordable Housing Bills Fail to Address Permanent Source of Funding
- Millennials Are Growing Factor in Housing Market’s Spike, Says Rutley of Mott & Chace
- Affordable Housing Rally Taking Place Online Tuesday Morning
- Capital Good Fund’s Posner Unveils New $500,000 in Loans to Help Transportation and Housing Relief
- Brown University Steps Up With Housing for Frontline Workers Fighting COVID-19
- Financial Incentives Available for Landlords to Rent to RIers Who Have Housing Vouchers
- The Perfect Storm: Rhode Island Is In a Massive Housing Crisis and It Could Get Worse
- This May Be RI’s Most Serious Problem — Housing Prices Freezing Out the Middle Class
- RI Real Estate Continues to Rocket While Growing Concerns About Global Housing Bubble Emerge
- Magaziner Doesn’t Know Cost of His Proposal to Build 5,000 New Housing Units
- New RI Regulations Bring Environmental Protection, Development and Affordable Housing Into Conflict
- McKee Announces $31 Million in Awards to Support 600 Units of Affordable Housing in RI
- Whitcomb: Baker Had Enough; Affordable-Housing Challenge: Cuomo Crash; Fusion Factories; Fauci Abuse
- Whitcomb: Winter Wonderland, for a While; Judeo-Christmas Songs; Masking Not Over; Mini-Warehousing
- First-in-the-Country Agreement Will Save 9 RI Housing Authorities 40% of Their Energy Costs
- Should Rhode Island Spend $500M on Affordable Housing?
- State House Insider and DMV Administrator Tied to Building Housing Alleged Cranston Massage Parlor
- Providence Councilor Announces Opposition to Housing for the Homeless Project
- RIHousing: RentReliefRI Provides Support for Rhode Islanders Facing Eviction
- Affordable Housing Can Be Good Design–Architecture Critic Morgan
- McKee Proposes Unprecedented $250 Million for Housing