Resultados de la comparación de las recomendaciones de la guía de práctica

Rebuild Rhode Island

The Rebuild Rhode Island tax credit is generally known as a provisionary tax credit put in place to soothe advocates for the allocation of funds towards the State Historic Preservation Tax Credit.

“If a real estate project cannot raise sufficient funding, or is at risk of locating in another state, Rebuild Rhode Island can fill the financing gap with redeemable tax credits covering up to 20 percent – and, in some cases, 30 percent – of projects costs. Commercial office,

industrial, residential, mixed use development, ground-up construction and historic rehab can qualify. A minimum project cost of $5 million and certain square footage/project size minimums may apply. Approved projects can also be exempted from sales tax on construction materials, furnishings and equipment.”¹⁴¹ One of the target industries for this tax credit is the arts.

Building Homes Rhode Island (BHRI): Forgivable Loans.

“In November 2016, voters approved Question 7, Housing Opportunity Bonds - $50 million. These funds will support the construction and preservation of affordable housing, support urban revitalization and blight remediation. The State will use $40,000,000 to develop and implement affordable housing opportunity programs through the redevelopment of existing structures and/or new construction. The remaining $10,000,000 will be used to provide funding to develop and implement programs for the improvement of properties that are blighted or in need of revitalization, including residential and commercial properties and public and community spaces.

Funding from past affordable housing bonds has been used to create over 1,900 affordable homes and apartments for families, seniors and veterans in 31 communities across Rhode Island.”¹⁴²

Community Development Block Grants (CDBG) (Entitlement)

“Provides annual grants on a formula basis to entitled communities to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and improved community facilities and services…All CDBG activities must meet at least one of the following national objectives: benefit low- and moderate-income persons; aid in the prevention or elimination of slums and blight; or meet certain urgent community

development needs…The CDBG program requires additional certifications, including that not less than 70 percent of the funds expended over a period specified by the grantee, not to exceed 3 years, must be used for activities that benefit low- and moderate-income persons..”¹⁴³

141Rhode Island Commerce Corporation, “Rebuild Rhode Island Tax Credit,” (Website, 2018), accessed May 2018.

http://commerceri.com/finance-business/taxes-incentives/rebuild-rhode-island-tax-credit/

142 Rhode Island Office of Housing and Community Development, “Public Notice of Proposed Rulemaking, Identifier 860-RICRI-10-00-1,” (Regulation, Rhode Island 2017), accessed 2018.

http://ohcd.ri.gov/community-development/bhri/documents/proposed-rules-packet.pdf

143 P. 7 https://www.hud.gov/sites/dfiles/Main/documents/HUDPrograms2017.pdf

HOME Funds

“Participating jurisdictions may use HOME funds for a variety of housing activities, depending on local housing needs. Eligible uses of funds include tenant-based rental assistance; housing rehabilitation; assistance to homebuyers; and new construction of housing. HOME funding may also be used for real property acquisition, site improvements, demolition, relocation, for both new construction and rehabilitation projects the costs to meet property standards, including

accessibility requirements, and other necessary and reasonable activities related to the

development of non-luxury housing. Funds may not be used for public housing development, public housing operating costs, or for Section 8 tenant-based assistance, nor may they be used to provide non-federal matching contributions for other federal programs, for operating subsidies for rental housing, or for activities under the Low-Income Housing Preservation Act.”¹⁴⁴

“All housing funded under the HOME program must serve low- and very low-income families.

For rental housing, at least 90 percent of the families benefited each fiscal year must have incomes at or below 60 percent of the HUD-adjusted area median income; the remaining 10 percent of the families benefited each fiscal year must have incomes at or below 80 percent of area median income.”¹⁴⁵ Developers should not use HOME Funds for more than eleven units per development.

HOME Units must be rented at below high-rent limits set for the state of Rhode Island

Affordable Housing Program, Federal Home Loan Bank of Boston

“In 2004, Rhode Island passed a Comprehensive Permit measure designed to increase the supply of affordable housing in communities across the state. In response to this development, the Bank has established an additional eligibility track for the use of New England Fund (NEF) advances.

Members can now request NEF funding from the Bank for a development financed under Rhode Island's Comprehensive Permit law, which is similar to Massachusetts' 40B. The Rhode Island

144 p 19, Participating jurisdictions may use HOME funds for a variety of housing activities, depending on local housing needs. Eligible uses of funds include tenant-based rental assistance; housing rehabilitation; assistance to homebuyers; and new construction of housing. HOME funding may also be used for real property acquisition, site improvements, demolition, relocation, for both new construction and rehabilitation projects the costs to meet property standards, including accessibility requirements, and other necessary and reasonable activities related to the

development of non-luxury housing. Funds may not be used for public housing development, public housing operating costs, or for Section 8 tenant-based assistance, nor may they be used to provide non-federal matching contributions for other federal programs, for operating subsidies for rental housing, or for activities under the Low-Income Housing Preservation Act.

145 p 19, https://www.hud.gov/sites/dfiles/Main/documents/HUDPrograms2017.pdf

law sets a 20 percent affordability threshold for units affordable to households earning at or below 80 percent of the area median income.” Affordable Housing Program Funds are accessed through Rhode Island Housing.

Housing Trust Fund: Grant

“The Housing Trust Fund (HTF) is a new affordable housing production program that will

complement existing Federal, state and local efforts to increase and preserve the supply of decent, safe, and sanitary affordable housing for extremely low- and very low-income households,

including homeless families.”¹⁴⁶

“The Housing Trust Fund (HTF) provides funding to construct, rehabilitate and preserve

permanent rental and homeownership housing, primarily for extremely low-income families. At least 80 percent of the funds must be used for the production, preservation, rehabilitation, or operation of rental housing. Up to 10 percent can be used for the following homeownership activities for first-time homebuyers: production, preservation, and rehabilitation; down payment assistance, closing cost assistance, and assistance for interest rate buy-downs.¹⁴⁷

Rhode Island Housing Property Acquisition and Revitalization Program (ARP)

“The Acquisition and Revitalization Program (“ARP”) aims to stabilize neighborhoods and communities by strategically targeting foreclosed and/or blighted residential and commercial properties and vacant lots in need of redevelopment. Approximately $10 million in funding is available to redevelop foreclosed and/or blighted properties; 75 percent of the funding is set aside for urban communities. Financing is available to non-profit and for-profit developers,

municipalities and public housing authorities.”¹⁴⁸ See Summary Guidelines for more information.¹⁴⁹

Section 8 Project-Based Rental Assistance

Nature of Program: HUD renews Section 8 project-based housing assistance payments (“HAP”) contracts with owners of multifamily rental housing. The project-based rental assistance makes up the difference between what an extremely low-, low-, or very low-income household can afford and the approved rent for an adequate housing unit in a multifamily project. Eligible tenants must pay the highest of 30 percent of adjusted income, 10 percent of gross income, or the portion of welfare assistance designated for housing or the minimum rent established by HUD. Originally, the assistance was provided in connection with new construction or substantial rehabilitation or to support existing projects. Authority to use project-based rental assistance in connection with new

146 https://www.rihousing.com/filelibrary/RFP_Ancillary_Financing_10-2017.pdf https://www.rihousing.com/sp.cfm?pageid=442

147 p 22 https://www.hud.gov/sites/dfiles/Main/documents/HUDPrograms2017.pdf

148 ARP Program Introduction, Rhode Island Housing website. https://www.rihousing.com/sp.cfm?pageid=551

149 P 1 http://www.rihousing.com/filelibrary/ARP_Program_Scoring_Criteria_Draft.pdf

construction or substantial rehabilitation was repealed in 1983. While funding is no longer available for new commitments, funding is available for the renewal of Section 8 HAP contracts for units already assisted with project-based Section 8 renewal assistance.