WASHINGTON, DC – Today, U.S. Senator Jack Reed announced a new $6.4 million
federal grant for RIHousing to finance the development and preservation of
affordable housing. These federal funds will help attract additional
private and public investment to create and support hundreds of jobs.
Senator Reed led the effort to create the
Capital Magnet Fund 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.
According to the U.S. Treasury Department, the Capital Magnet Fund, based on
the first round of awards, has already leveraged private and public investment to
create over 13,300 affordable housing units and the creation of nearly 16,000
jobs while generating nearly $1.8 billion in private and public leverage.
Today, Reed commended RIHousing for winning
this competitive $6.4 million Capital Magnet Fund grant from Treasury’s
Community Development Financial Institutions (CDFI) Fund, which builds on a
prior $4.7 million Capital Magnet Fund grant RIHousing received last
RIHousing was one of 38 organizations
nationwide to be selected by Treasury, which is awarding a total of $142.9
million this week through the program.
“I created the Capital Magnet Fund to expand
access to affordable housing in a way that creates jobs and builds stronger
communities. I am thrilled Rhode Island Housing is receiving another
major award to put folks to work and keep 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. “I know this money will be put to work
helping working families and making Rhode Island a better place to live, work,
and do business. I will continue to oppose President Trump’s efforts to
eliminate the Capital Magnet Fund.”
The Capital Magnet Fund requires recipients to
leverage $10 of housing and economic development investments for every $1 of
“This is a tremendous achievement for the
corporation given the stiff competition from across country. Not only did
we win an award, but it is a significant increase from our last award which we
have already invested to support the development and preservation of nearly 300
homes in Pawtucket, Newport and Coventry,” said Barbara Fields, Executive
Director of RIHousing.
its two Capital Magnet Fund grants, Rhode Island Housing estimates that a total
of 1,800 affordable housing units will be supported, helping to create more
than 850 jobs.