Key Funding Source for Affordable Housing Development in Rhode Island Is Cut
LISC has received notification that certain grants from HUD were being cancelled. The stop work order relates specifically to work supported by the HUD Section 4 capacity building grants as well as funding for technical assistance programs that provide vital support to community groups and housing providers nationwide. This specific funding is awarded annually to national non-profit community development financial intermediaries.
Locally, this funding is an important and vital resource that we’ve used to grow the network of Community Development Corporations (CDCs) doing the hard work of developing deed-restricted affordable housing. HUD requires a 3:1 match and LISC Rhode Island raises additional funds from local partners like the Rhode Island Foundation, Rhode Island Housing and Santander to reach that match. That leverage is not only important for local funders and gives them more bang for their buck, but it also shows the substantial local support for the program.
HUD Section 4 funding supports our Neighborhood Development Fund, and together with funding from local partners, delivers both unrestricted funding and access to specialized technical assistance to CDCs through a competitive annual application overseen by a 9-member review committee. The CDCs submit proposals, audited financial documents, goals, and projections. As part of this program, LISC also conducts two compliance reviews for each awardee to ensure they are following all federal regulations consistent with the management of deed-restricted housing. This money is vital to the health of these organizations, and also ensures the organizations are fully compliant with federal regulations and reporting.
Seventy-eight percent (78%) of Rhode Islanders say that there are too few homes in their community that average people can afford, according to a new poll commissioned by Neighbors Welcome!
To date, the 30-year program has invested nearly $24M locally and more than 40,000 hours of highly specialized technical assistance and trainings into the organizations that do the important work of building deed-restricted housing. These non-profit partners work on razor thin margins and face rapidly evolving challenges to both manage deed-restricted housing and add new homes to address the housing crisis. They build homes for our seniors, people with special needs, and children with single parents. Because of the NDF program, our CDCs have strengthened their processes so they can rise to the challenges posed by rising costs, zoning restrictions, community roadblocks and changing dynamics. While other states work through changing developers and inexperienced CDCs that might not have the skills for work in this highly specialized area, Rhode Island has a stable and seasoned CDC community that understands the complexities of the work. This is a direct result of the 30-year investment from LISC through the NDF and its partners.
This announcement is incredibly disappointing, but LISC has a strong track record in Rhode Island of finding solutions to complex community challenges. Because of the way we structure our program, funding has been secured for this year. However, it will be even more important for local partners to step in and fill the void for the next grant cycle. Housing must be the priority – it is the foundation for all economic momentum in Rhode Island.
