PROVIDENCE, RI – Today, U.S. Senator Jack Reed (D-RI) and Governor Gina M.
Raimondo joined RIHousing in announcing a new $4.7 million federal grant that
will help RIHousing create and preserve over 550 apartments and homes for
families across the state and attract additional private investment to help
create and support hundreds of jobs.
Senator Reed led the effort to create the
Capital Magnet Fund (CMF) in 2008 to support community development financial
institutions and non-profit housing developers that increase investment in
affordable housing and economic development activities or community service
facilities, such as daycare centers or workforce development centers.
Today, Reed commended the State and RIHousing for winning this highly
competitive $4.7 million Capital Magnet Fund grant from the U.S. Treasury
Department’s Community Development Financial Institutions (CDFI) Fund.
RIHousing was one of 40 organizations and non-profit housing developers
nationwide to be selected by Treasury, which is awarding a total of $120
million this week through the program.
“Housing is an essential component of strong
communities – it serves as the foundation of economic wellbeing for Rhode
Island families,” said Governor Raimondo. “The resources from the
Capital Magnet Fund will help our continued efforts to ensure that Rhode
Islanders are not burdened by unsustainable housing costs and will allow us to
continue creating an environment that incentivizes residents and businesses to
choose Rhode Island and help us further strengthen our economy.”
“Jobs and housing matter. Too often,
there’s not enough federal help with either. That’s why I created the
Capital Magnet Fund. It means Rhode Island will now have $4.7 million
more to help people create jobs and find affordable housing. The Governor
and RIHousing worked hard to put together a successful application for this
highly-competitive grant. This is a smart investment that should put
folks to work and put more working families in homes they can afford,” said Senator
Reed, a senior member of the Banking Committee, which oversees federal
housing policy, and the Ranking Member of the Appropriations Transportation,
Housing and Urban Development, and Related Agencies (THUD) Subcommittee, which
oversees federal spending for community development and housing programs.
The Capital Magnet Fund requires recipients to
leverage $10 of housing and economic development investments for every $1 of
federal funds. RIHousing plans to exceed that goal and estimates that
this federal award will help attract over $110 million in additional
“RIHousing is excited and deeply honored to
receive this highly competitive award. The Capital Magnet Fund infusion
comes at a time when resources are scarce and we are working to stretch every
dollar. The $4.7 million investment from the federal government, combined
with existing RIHousing resources, will allow the corporation to invest in the
development of more apartments and homes for Rhode Island families, create and
support more jobs, and generate more economic activity throughout the
state. Thank you to Senator Reed for his leadership in creating the
Capital Magnet Fund and his continued support for the work we do.
RIHousing is excited to deploy this resource and to help as many Rhode Island
families as possible,” said Barbara Fields, Executive Director of RIHousing.
RIHousing will combine the $4.7 million grant
with other existing resources to help bridge the funding gap in projects that
are “ready to proceed” but needed additional support in order to get
underway. The developments will provide homes for families at a range of
income levels and include families that earn $19,500 a year to those that earn