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Contact: Jo-Ann Ryan, 401 457-1258
jryan@rhodeislandhousing.org
Federal Tax Credit Funding Bringing More Rhode Islanders Home
TCAP and TCEP Funds to Create 610 Homes and nearly 1,000 Jobs
Providence, RI (July 13, 2009) – Communities throughout Rhode Island will soon experience the benefits of the U.S. Government’s Tax Credit Exchange Program (TCEP) and the Tax Credit Assistance Program (TCAP), totaling over $45 million for the state. By leveraging these funds to reinstate stalled developments, these programs will result in a nearly $300 million investment into
Part of the American Recovery and Reinvestment Act (ARRA) announced last February by President Obama, these stimulus funds will help to close the tax-credit financing gap currently preventing numerous developments from moving forward and keeping many Rhode Islanders out of work.
“I am pleased to have secured federal funding for these programs which will create jobs and spur the construction of affordable homes throughout Rhode Island,” says U.S. Senator Jack Reed, who supported both programs and successfully led the effort in Congress to include TCAP funding in the Recovery Act. “This money will help boost the local economy and expand choices for Rhode Islanders in communities across the state.”
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TCEP Funding Recipients: SWAP, Inc. for Trinity Place: $4,797,290 CommunityWorks Rhode Island for Broad Street Revitalization: $6,954,630 Church Community Housing Corp. for Sandywoods Farm: $8,318,580 NeighborWorks Blackstone River Valley for Stillwater Mill: $7,827,760 Edward A. Fish Associates, LLC for Bourne Mill: $7,215,000 |
“For years, the housing tax credit has been the primary production tool for healthy, affordable homes in
Rhode Island Housing will leverage the $35 million in TCEP funding allocated for
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TCAP Funding Recipients: Edward A. Fish Associates, LLC for Coddington Point: $1,766,990 NBSHK LP for Medina Village: $1,625,000 Arch Street Development Group, Inc. for Carlton Westside: $2,448,100 Crossroads Rhode Island for Kingstown Crossing I: $4,746,900 |
In addition, through TCAP, HUD will be awarding $2.25 billion in grants to HFAs and other state allocating agencies throughout the country, including more than $10 million to Rhode Island Housing, to complete construction of qualified home developments. The TCAP program will fund developments in
In order to be eligible for the TCEP or TCAP funds, developers submitted proposals to Rhode Island Housing providing evidence of inability to obtain tax credit investment, and meeting other eligibility requirements as set forth by the U.S. government. Rhode Island Housing's selection process for allocating tax credits is designed to select proposals that address Rhode Island’s housing needs as identified in the Rhode Island Five Year Strategic Housing Plan, as well as the federal criteria included in the Rhode Island Qualified Allocation Plan.
In issuing the funds, priority was given to those developments that:
· Currently have an investor/syndicator but for which the pricing is less than the amount anticipated when the development previously received LIHTC funds resulting in a need for gap financing;
· Have received a reservation of 2008 or 2009 credits and can demonstrate that they have been unable to engage a syndicator or direct investor to purchase those credits at a price acceptable to Rhode Island Housing;
· Will result in an increase in the number of new homes available for families;
· Were previously funded by Rhode Island Housing and have immediate and urgent repair needs;
· Have expiring rental subsidies; and
· Have applied for refinancing under Rhode Island Housing’s Preservation program.
“This funding speaks to the type of innovative thinking that we need in order to build a brighter future for
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