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Rebuilding a Strong Economy
As we near the halfway point of 2010, I am finding myself balancing my renewed sense of hope with careful concern about the obstacles that lay ahead for our state.
On the one hand, Rhode Island has made great progress in using its resources to pave a slow but steady road to economic recovery. Together with our partners, Rhode Island Housing has led the country in putting Tax Credit Assistance Program (TCAP), Neighborhood Stabilization Program (NSP) and Tax Credit Exchange Program (TCEP) funding to work. And, we are enthusiastically engaged in the planning process to make use of the recent allocation of $43 million in “Hardest Hit” funds to help Rhode Islanders who are in jeopardy of losing their homes. These funds will provide direct, much-needed assistance to thousands of Rhode Island families, particularly those struggling due to job losses.
We are very proud of the national attention we continue to receive for our efforts to use stimulus funds quickly, strategically and effectively. In a rare visit to Rhode Island, U.S. Department of Housing and Urban Development Secretary Shaun Donovan hosted a roundtable discussion on April 23 at Rhode Island Housing along with U.S. Senator Jack Reed. He came to listen to and learn from the group about how federal stimulus dollars have been put to work here in Rhode Island, and to determine what more the federal government can do to help.
Stimulus money has helped us make much progress and put many Rhode Islanders to work. But, as with the recent flooding, while we were building new walls to hold back the floodwaters, the waters continued to rise. So we must build higher and stronger walls. We are now facing a whole new wave of foreclosures. Record high unemployment and further stress from the flooding is putting financial strain on many Rhode Islanders to the point where they are unable to pay their mortgages.
Before the economic and housing crises began, Rhode Island had one of the largest gaps between what people earn and the cost to rent or own a home, the largest percentage of subprime loans in the country, and a severe shortage of 13,000 affordable homes. And while the unprecedented numbers of foreclosures in Rhode Island seem to put more affordable homes on the market, they in fact leave even more families homeless, many more homes in disrepair or ready for demolition, and entire streets, blocks, and neighborhoods with further declining property values. <read more>
Between the Numbers
 Without a doubt, most of us will look back on the past 2-3 years as some of our most challenging times. Surging unemployment, a rising tide of foreclosures, recent flood waters and declining state and local revenues have left families and communities struggling to make ends meet.
Recently, Rhode Island Housing prepared 2010 Homes and the Economy – a complete update on housing-related statistics, the connections between the housing market, jobs and the economy, and what the statistics mean for our state. It also provides an overview of how we are putting federal stimulus dollars to work in facilitating positive long-term change and economic recovery in Rhode Island.
This issue of Homes and the Economy also provides some insight into reading “between the numbers.” For example, for every home that is foreclosed, anywhere from one to four families are displaced. Even as the tide of foreclosures continues to rise, we must look beyond the data to understand the deeper implications of each piece of the crisis.
Working Together to Keep Your Home
Working Group Convenes to Leverage $43 Million in Federal Foreclosure Relief Funds
After February’s initial allocation of $1.5 billion in “Hardest Hit Funding” among five states, U.S. Senators Jack Reed and Sheldon Whitehouse, as well as the rest of Rhode Island’s Congressional Delegation, raised concerns about the program not including Rhode Island – which has the seventh-highest rate of price decline and the third-highest unemployment rate in the country. Their tenacity paid off when it was announced that Rhode Island has been awarded $43 million to help Rhode Island homeowners who are struggling to pay their mortgages, with special emphasis on those who are unemployed or suffering financial hardship. Rhode Island Housing is among five Housing Finance Agencies (HFAs) in the country that will administer these funds, in addition to the five HFAs announced initially.
On April 20, Rhode Island Housing convened a “working group” of partners from state agencies, lenders, non-profits and businesses to come together to design effective programs to best utilize and leverage these funds. <read more>
Senators Reed and Whitehouse Visit Federal Stimulus Site in Providence
Rhode Island Housing Leads Tour of Broad Street Corridor
 U.S. Senators Jack Reed and Sheldon Whitehouse recently paid a visit to a Broad Street Revitalization (BSR) construction site in Providence to experience, first hand, federal stimulus dollars at work in Rhode Island. The Senators were joined by Richard Godfrey, Executive Director of Rhode Island Housing, for a tour of the neighborhood, which received nearly $14 million in federal stimulus funds.
“Broad Street is one of Providence’s critical arteries, and I am pleased we were able to secure federal TCEP funding to get previously stalled construction projects moving,” said Reed. “This effort is putting people to work, revitalizing the neighborhood, and helping us build a stronger community.”
“Broad Street Revitalization is not only an example of putting federal stimulus dollars to work, it’s an example of collaborations that result in putting Rhode Islanders to work while creating homes for their families, beautifying neighborhoods and stimulating long-term economic recovery,” said Godfrey, who pointed out that it is estimated that 173 jobs were created in the $12 million BSR development. “We are grateful to Senators Whitehouse and Reed for their ongoing support.” <read more>
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Sen. Reed and Community Leaders Gather for Historic Groundbreaking in Pawtucket
JeffreyAMorse Photography
Pawtucket Citizens Development Corporation (PCDC), the City of Pawtucket, Rhode Island Housing, LISC and KeepSpace were joined by U.S. Senator Jack Reed and community partners on April 9, to celebrate the very first groundbreaking of a KeepSpace Community: where neighbors meet, people work, children play.
When complete, Blackstone Valley Gateways will include 33 homes for rent and 4,000 square feet of community office and program space. Spearheaded by PCDC, the Blackstone Valley Gateways initiative is part of the greater KeepSpace plans for Pawtucket/Central Falls.
“This is great news for Pawtucket and Central Falls. I applaud PCDC, KeepSpace, and their partners for leading this collaborative effort, and I am proud to have helped secure over $900,000 in federal assistance for this initiative. Together with private investments, this project is estimated to create about 170 jobs,” said Senator Reed. “KeepSpace is about strengthening neighborhoods so folks have access to jobs, housing, schools, stores and businesses, and public transportation. This development will help more families plant roots in the community and offers a blueprint for smart, sustainable growth.”
<read more>
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HUD Secretary Makes Historic Visit to Rhode Island
Accolades for Rhode Island Housing and Partners
In a rare visit to Rhode Island, U.S. Department of Housing and Urban Development Secretary Shaun Donovan hosted a roundtable discussion on April 23 at Rhode Island Housing along with co-hosts, U.S. Senator Jack Reed, who was responsible for bringing Donovan to Rhode Island, and Rhode Island Housing Deputy Director, Susan Bodington.
JeffreyAMorse Photography
Around the table sat many of the state’s prominent figures in development and policy for affordable homes and communities, and protection of our homeless population. The purpose of the meeting, as stated by Secretary Donovan: to listen to and learn from the group about how federal stimulus dollars have been put to work here in Rhode Island, and what more the federal government can do to help.
“We are trying to be a different kind of federal partner,” said Donovan. “We need to understand how we can better customize and target programs. How can HUD be a better partner? How can we do more that works locally? What else is needed?”
Reed, a long-time advocate for affordable homes, thanked Donovan for being one of the most remarkable champions of the work we do in housing. He added, “It is a tribute to Rhode Island Housing and the not-for-profit partners around this table that the Secretary is here."
<read more>
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