LISC Rhode Island Awards $620,000 to Community Development Partners

PROVIDENCE, October 19, 2022 – Local Initiatives Support Corporation (LISC) Rhode Island today announced more than $620,000 in grant awards to Community Development Corporations to support the organizations in their mission to create and preserve affordable housing in Rhode Island. 

The awards are part of LISC’s Neighborhood Development Fund, an annual grant program that provides funding for operational expenses, capacity building, and provides robust technical assistance for CDC partners throughout the year. Since its inception in 1995, LISC’s Neighborhood Development Fund has awarded more than $13.2 million to community development corporations in Rhode Island. The program’s primary focus is to increase the ability of the state’s CDCs to produce affordable housing while addressing broader community revitalization issues. 

“Rhode Island, like the rest of the country, is experiencing a serious housing crisis,” said Jeanne Cola, Executive Director of LISC Rhode Island. “The rental market is very tight in many communities and the median house price has increased to the highest rate in 11 years. There is a critical shortage for housing for seniors and families, especially those earning below $60,000 a year.”

SWAP — Stop Wasting Abandoned Property — has recently completed two new developments, including Maplewoods Apartments in northern Providence and Revitalize South Side. It's also working to build two mixed-use buildings and a 76-unit preservation project in South Providence.

The eight CDCs receiving funding this year include: Church Community Housing Corporation; NeighborWorks Blackstone River Valley; Pawtucket Central Falls Development Corporation; One Neighborhood Builders; Stop Wasting Abandoned Properties, Inc. (SWAP); Sojourner House, Omni Development; and Women’s Development Corporation. 

“LISC provides vital operating support. Without it, CDCs in Rhode Island wouldn’t be able to do what they do,” says Cola. “This year, operational support is even more critical as construction budgets expand as ARPA and Bond money roll out. Having the staff to deploy these programs, line up the projects, and navigate the complexities of affordable housing development is crucial so that progress can happen.”

In June, Pawtucket Central Falls Development celebrated the addition of five new homes on previously vacant land.

In his State of the State address, Governor McKee proposed spending $250 million of the funds awarded to Rhode Island from the American Rescue Plan Act on increasing and renovating affordable housing.  The measure was supported by leadership of the House and Senate and approved by the General Assembly. The additional funds will augment $65M in bond funds already approved by Rhode Island voters in a special election in March 2021.

 “The additional funding for housing is an important step in addressing the housing crisis,” said Cola, “but it’s just the first step. We must maintain ongoing support to make a difference in this crisis.”

Each year, LISC receives an allocation of funding from the U.S. Treasury to support capacity building for Community Development Corporations engaged in creating or preserving deed-restricted affordable housing. This federal allocation, referred to as HUD Section 4 funding, requires a local match to access the funds. LISC Rhode Island uses this federal funding to create the Neighborhood Development Fund and leverages local philanthropic support from The Rhode Island Foundation, Santander Bank and others to satisfy the match requirement for federal funding from the HUD Section 4 allocation.   

In addition to funding operational costs, the NDF provides resources for professional development training, operational resources for computer and systems upgrades, and technical assistance to help CDCs strengthen internal operations. 

OMNI Development is in the process of redevelopment of the former Barbara Jordan II parcel. The new project will include homeowner units as well as rental, and contain mixed-use and community space.

“The Professional Development aspect of the program fills an important need for the successful operations of Rhode Island CDCs,” said Cola. “The work performed by our partners is critical to the economic growth and sustainability of our communities, and this is one way we work with them to ensure they have the necessary skills to excel.”

Grantees will receive tuition sponsorship for trainings through the National Development Corporation, a national non-profit dedicated to the support and preservation of affordable housing. The training program works to build the capacity of executive directors and program managers.

About LISC Rhode Island — Together with residents, partners, and local leaders, LISC Rhode Island forges resilient and inclusive communities of opportunity across our state – great places to live, work, visit, do business, and raise families. Our strategies – investing in real estate, increasing family income & wealth, stimulating economic development, improving access to quality education, and supporting healthy environments and lifestyles – work together to improve the health and well-being of our neighbors. LISC has invested $460 million in neighborhoods across our state, helping to create more than 9,160 affordable homes and support the development of more than 2.5 million square feet of commercial, child care, educational, and community space.  We are committed to building strong neighborhoods and healthy communities where individuals, businesses and families can thrive.