News & Event
Dear Members, Sponsors, and Community Partners,
FHLBank Boston is hosting several training sessions and webinars for our Affordable Housing Program (AHP) during the months of April, May, June, and July in various locations. Registration links are included below. Make sure to register soon.
Our trainings offer valuable information to help developers and sponsors with their funding applications. We also have webinars focused on our member financial institutions’ role in the AHP.
The online AHP application will be available on our website from June 3 through July 25. Approximately $20.7 million is available through the AHP to support the production and preservation of affordable housing initiatives.
We look forward to seeing you. If you have any questions, please don’t hesitate to contact your community investment manager or me at 617-292-9668.
Thank you for your interest in the AHP.
Manager of Programs and Outreach
Housing and Community Investment
Rhode Island: April 30
New Hampshire: May 2 and June 6
Connecticut: May 9
Maine: May 14 and June 12
Massachusetts: June 4 and June 25
Vermont: June 13
Members’ Only Webinar: May 8
AHP Revolving Loan Fund Webinar: May 16
AHP Scoring Only Webinar: May 21, June 18, and July 2
AHP Feasibility Only Webinar: May 30, June 27, and July 9
Courtesy of Federal Home Loan Bank of Boston
By Mary MacDonald | April 27, 2018 6:30 am
R.I. Housing and Mortgage Finance Corp. is celebrating its 45th anniversary this year in a position of financial strength, says Executive Director Barbara Fields.
It has created programs to assist first-time homeowners, expanded its servicing of mortgages to include those generated by MaineHousing and emerged from the Great Recession with a surplus of financial assets.
But it is working against a backdrop of unaffordability. Half of all renters and 30 percent of homeowners in Rhode Island are housing-cost burdened, paying more than 30 percent of their take-home income on rent and utilities.
Fields has been executive director of the quasi-public agency since January 2015. She previously was the New England regional administrator for the U.S. Department of Housing and Urban Development and the director of the Local Initiatives Support Corp. in Providence.
What’s the best way for Rhode Island to increase access to affordable housing?
“Build, build, build,” she said.
How has the mission of R.I. Housing changed over the past 45 years? R.I. Housing was established by the General Assembly in 1973 as a public corporation of the state. We have an independent existence from the state, although they exercise a central control over our board. Our primary purpose was to encourage investment of private funds for the development of housing for low- and moderate-income persons, and to function as a source of capital for affordable-housing development. We were basically set up to be the state’s housing bank at a time when many other states were doing this. Today, there are 53 housing finance agencies [nationally].
Within Rhode Island, what is your share of home loan origination? Last year, we did 13 percent of the mortgages in the state. Origination … is only 15 percent of our business. Eighty-five percent of our business comes from working with 40 brokers and lenders and we consider them, obviously, critical and important partners. The No. 1 is [Coastway Community Bank]. They help bring us business. Housing is economic development. We help support local businesses. … Also, we were set up to bring private money in to help people get into home ownership. We go to Wall Street and float taxable and tax-exempt bonds, both for single-family and multifamily.
Since the [Great Recession], what has changed in our business is we also sell in the secondary market. We get a warehouse line of credit. We work with three or four banks. We purchase the mortgages and when we get enough, we bundle them and we sell them in the secondary market as securitized mortgages.
What’s the benefit of doing that? The interest rates have been extremely low. There are key Rhode Island officials … who got their first mortgages at RIHousing. [Former Auditor General] Ernie Almonte in 1982 or 1983 bought [his] first house. The rates were 15-16 percent and we could get you 12 [percent]. We forget. In a video on our website he stands in front of his first house. That speaks to what our major focus and mission is. People who are early in their career, buying a home and setting roots in the community. Last year was a banner year. We did almost 1,800 mortgages. The average age of someone who got a mortgage through RIHousing last year was 37.
Is there any focus this year for the organization? Rental apartments for working families, working individuals and a lot more seniors. We have a growing senior population. … [Recently], we got the first-ever Capital Magnet Fund. We got one of the largest in the country. It’s from the U.S. Department of Treasury. It’s $4.7 million and it will help us on a key focus. … We run a lot of federal programs on behalf of the state. One of them is the federal low-income housing tax credit. … There are two sets of credits. One is a deeper subsidy, called the 9 percent. It’s highly competitive. We’re doing as much as we possibly can with what we get. The other, which is a shallower subsidy [of 4 percent] that has to be used with our first mortgage, that is limited by the state’s bond capacity. We are not tapped out, and we would love to do more of those deals. And produce more rental housing and preserve housing that exists. [With] that Capital Magnet, we’ll be able to fill that hole, between the 4 percent and the 9 percent.
What is the profile of your mortgage borrower? The average household income for the homeowners we served last year was … about $66,000 to $67,000. That’s teachers who may be in for a few years, certified accountants, nursing assistants, construction workers. This is the heart and soul of what makes up our middle class. And the average sale price was just under $200,000. And I’m proud of the fact that 27 percent of our mortgages are reaching the minority community. We’re seeing rising prices, so some of that rise is good, it means our economy is getting better. … One of the challenges is … just having more housing built in the state.
You’ve touched on the lack of inventory in single-family homes. What is the solution? How do we get more inventory? Build, build, build.
How? There are different pieces. Some of them we’re beginning to explore: if there are zoning challenges and communities that aren’t interested. Personally, I’ve been going around the state for the past year. I’ve been in Barrington, Middletown, Cumberland, talking to mayors, city councilors and town councils. I would have to say, by and large, they are welcoming. Everyone at this point has a story to tell. It’s either my son won’t leave the house, [or] soon it will be my mother won’t leave the house. Or my sister-in-law’s godchild and her fiancé are looking for a house, and they can’t find it. Seniors are staying longer in their homes. They’re living longer and are in better health. That’s not freeing [housing] up.
If there is an understanding of what the issue is, why aren’t more towns creating zoning to allow more density? I think South Kingstown just did some [rezoning] along Route 1. As I say to the communities, think about your community. I’ve been out with two mayors now, I’m about to go with a third, [and I say] drive me around your city, your town, and tell me, where do you want development? Because it is likely to come, and wouldn’t you want to proactively direct it to those places? In South Kingstown, they started talking about some properties that they knew.
There is always going to be some NIMBY-ism [or “not in my backyard”], but we have not had that raised as a major issue. We’re now funding our second project in Barrington. … We have done one now in Shannock Village, in Charlestown. These are apartments for families, most earning between $30,000 and $50,000 a year. Anyone can apply. But mostly you get people from your community. When we run the numbers in these communities, usually you find 20 percent of current residents would be eligible. … The most important thing to understand is there isn’t one type of housing that we advocate for. We have high-rise buildings. We have single-family homes being built. We have duplexes. We have ground-floor retail and townhouses.
So, people may have a visual that pops into their head when they think of affordable housing. They don’t want it developed in their community because they think it’s going to be ugly? We’re smarter about how to build [today]. We think about housing as part of the community, and community is the economic life of the state. I’m a community-development person coming into housing, so I am always thinking about the connection. We always look when we are financing multifamily rental, where are the parks, where’s the bus line, where do you shop for groceries? What is it that makes a community?
People still assume millennials are living in the basement with their parents. But they’re out there buying now, they are the starter-home market. You have a variety of mortgage programs, including down-payment assistance. But they’re running into an inventory problem. Are the state’s demographics part of the problem? It’s a variety of factors. You have millennials who are now ready to buy. You have a tremendous change in the economy. We went from the second-worst unemployment rate in the country to one of the lowest. We did a 10-year study. Even if the population grows slowly, we projected it would grow at 5 percent [over 10 years]. Households will grow at 12-13 percent. People are waiting longer to marry. You have a lot of singles, or two people in a house without a child until later. So, people need more houses. People are divorcing. You have more households being created by all of these factors. Especially if you go back and see what was going on 30 years ago. The average size in public housing is smaller. Occasionally we will see a proposal come in with a four-bedroom unit or a five-bedroom unit. But we are building one, two and three [bedrooms].
There is some pushback in Providence that the new housing being constructed is primarily downtown housing not designed to accommodate families, who also need housing. Does Rhode Island need more small apartments? A healthy rental market has about a 6.5-7.5 percent rental vacancy rate, so you have turnover, you have empty units for people to come and look at. The nation is below that. Rhode Island dropped last year … to under 4 percent. And Providence is lower than the state. Providence is about 2 percent. So, we need rental apartments, as well as owner-occupied apartments. We’re in a niche, but it’s needed across the income ranges. Part of what’s increased the demand here also is people coming from the Boston area. This is an attractive place to live.
In Massachusetts, a state law called 40B seems to have more strength in getting affordable housing built in individual towns. (The law allows developers to bypass local zoning in towns or cities that have less than 10 percent of the housing stock available at affordable prices.) What is the challenge for Rhode Island’s affordable-housing requirement? FortyB has a lot more teeth. I would say, yes, we have a 10 percent law. … A [state] commission is looking at how to make it stronger.
Do you think it needs to be made stronger, to distribute affordable housing? Yes, I believe so. When you sit down and talk to a community about who would live in the housing you’re talking about, it becomes a very different story. Up here, it’s like numbers, ideas and images. Down here, it’s “Oh, it’s my best friend. It’s my brother-in-law.”
There are many Rhode Islanders who earn less than the state median, as well. I don’t care what your job is. No one makes in their first five years what they might later. We want to accommodate that. I’m sure Ernie Almonte’s salary is different today than it was 25 years ago, when we helped him buy his first house. But that was a good investment to make. It wasn’t a giveaway.
Some activist groups have recommended rent control in Providence, to dampen price escalation. Is rent control an option? My preference is to build. Supply is the approach now being done in Boston. If we can increase the supply, it helps to moderate the prices. We are also involved in several efforts to make sure we maintain the affordable units that we have, that work for people at the lowest income levels. We are very committed to preservation, whether it’s senior units or family housing. We need to preserve what we have. A lot of the housing we’re preserving is 30 years old.
Some community advocates in Providence think city incentives via tax-stabilization agreements should not be used on luxury housing. The Fane Organization tower could be the next argument over this. Should public incentives be used for luxury product? I would just say the TSA process needs to be predictable. No matter what program we run, people want predictability. In Providence, TSAs are needed so we have predictability. If you meet these requirements, you can come in.
Sen. Howard Metts, D-Providence, has raised the issue of discrimination against Section 8 tenants, that the people who hold the vouchers are having trouble finding apartments. He has proposed a law that would prevent landlords from using the source of income as a reason to block a lease. Is this an issue? Absolutely. Thirteen states have that law, including four New England states. We’re supportive of [his proposal].
Gov. Gina M. Raimondo has proposed a transfer to the state of $5 million from R.I. Housing in fiscal 2019. Can the state “scoop” your funds? The board will have to vote on it. We’re going to minimize the impact. It will have an impact, obviously, but we’re going to minimize it. This came up in January. We know the budget will be made by the end of June.
Why did you agree to do it? The governor controls the board and we’re part of the team. Someone talked to the chairman. It’s not an optimal situation. But we’re going to minimize it. We get rated by the bond-rating agencies and we’re talking with them. They will take a look at our rating. But we happen to be in a strong position.
According to your most recent annual audit, your loan-loss contribution fell dramatically in fiscal 2017. What is the story behind that? The market is doing better. People are doing better. We had tremendous losses during the recession, now we’re on a different path. We hope it continues.
The same audit indicated that the three-month delinquencies on R.I. Housing mortgages rose between 2016 and 2017. What is the reason for that? We had a slight uptick, but we are on top of it. We are below nationwide and below New England. We have new metrics we’re following and are working with our 40 brokers and lenders. We look at people’s credit scores and we look at their ratios. We meet, we want [the Federal Housing Administration] to purchase our mortgages, FHA and Fannie Mae. We have some flexibility. We instituted a credit score to raise it a little, to make sure we’re in line with the rest of the New England states.
Some people think homeownership shouldn’t necessarily be identified as a dream for everyone. That maybe we shouldn’t be encouraging homeownership. Do you have any thoughts on that? We should always have a range of housing options. … There are people who need a homeownership opportunity, they’ve saved for years. It may be a single-family, a townhouse, a condominium. We need rental opportunities. Seniors who owned a home who need a rental opportunity. Supportive opportunities, say veterans, where there are services on-site for them. And we also work on properties where we have the vouchers. Every community needs to think, at different points in people’s lives … there are different reasons why people choose types of housing.
Courtesy of Providence Business News
These changes could help offset the impact of the lowered corporate tax rate from 35% to 21%, which effectively reduces the value of Housing Credits to corporate investors. Some experts estimate that the lowered corporate tax rate will significantly reduce investor demand for the Housing Credit and could result in 20,000 fewer homes being built under the program annually.
Courtesy of NLIHC
(Note: Over the last few weeks WhatsUpNewp has been exploring affordable housing issues. Last Friday, HousingWorksRI released its annual Fact Book, providing a detailed look at how the state and its municipalities are addressing affordable housing issues. To view our stories and podcast in this series, visit Affordable Housing. Meanwhile, we’ll be continuing our affordable housing series in the upcoming weeks.)
Businesses and communities benefit when there’s adequate affordable housing for moderate- and low-income individuals and families, a message that affordable housing advocates believe will begin to get those who typically have ignored the issue, to begin taking it seriously.
“A policy window is opening,” said Dr. Tiffany Manuel, a housing advocate, speaking at the HousingWorksRI luncheon at which the organization unveiled its 2018 Housing Fact Book. “Nationally we have a moment. How do I make them care? Why it’s important. Why it makes us better.”
Her premise is to equate affordable housing with economic development.
It’s an approach that is well documented on various websites that not only show the jobs created by construction but the number of employees that would be served by an increase in affordable housing.
Manuel’s comments came on the day that HousingWorksRI unveiled findings that only reinforced Manuel’s characterization of the “severity of the housing crisis.”
According to HousingWorksRI households at or below the state’s median household income of $58,387 could only afford to buy single-family homes in two (Central Falls and Providence) of Rhode Island’s 39 municipalities.
Only six municipalities (up from five last year) have reached the mandated 10 percent of affordable housing, legislation that was adopted nearly three decades ago. Burrillville became the sixth community reaching the threshold, joining Central Falls, Newport, New Shoreham (Block Island), Providence, and Woonsocket.
The state law requires municipalities to “ensure a minimal number (10 percent) of quality, affordable homes are available to low- and moderate-income Rhode Islanders for a minimum of 30 years,” according to HousingWorks RI.
The lack of affordable housing is reflected upon the number of Rhode Islanders struggling to meet mortgage payments or rent.
“The continuous climb in the cost of housing and lack of new homes has left more than 145,000 Rhode Island households, or 35 percent of all households, cost-burdened, meaning they spend more than 30 percent of their income on housing costs,” according to the Fact Book. Some 44 percent of the 145,000 households that are cost burdened are considered “severely cost burdened,” spending more than 50 percent of their income on housing costs.
Some other of HousingWorks key findings:
Manuel emphasized the importance of federal, state, and municipalities of addressing affordable housing issues as a way of fueling the economy, good for businesses and communities. Here’s what some others say:
Courtesy of WhatsUpNewp
Federal Home Loan Bank of Boston is hosting several training sessions and webinars for our Affordable Housing Program (AHP) during the months of May, June and July in various locations. Registration links are included below. Make sure to register soon.
FHLBB trainings offer valuable information to help developers and sponsors with their funding applications. We also have webinars focused on our member financial institutions’ role in the AHP.
We look forward to seeing you this summer. If you have any questions, please don’t hesitate to contact me at 617-292-9668.
Thank you for your interest in the AHP.
Manager of Programs and Outreach
Housing and Community Investment
Washington, DC – A diverse range of organizations from various sectors announced a new campaign today to increase affordable housing for America’s most vulnerable communities.
The Opportunity Starts at Home campaign launched today at the National Low Income Housing Coalition’s (NLIHC’s) Housing Policy Forum in Washington, DC. With financial support from the Funders for Housing and Opportunity, NLIHC launched this new multi-sector affordable homes campaign together with the Center on Budget and Policy Priorities, Children’s HealthWatch, Make Room, and the National Alliance to End Homelessness, and with a steering committee that includes Catholic Charities USA, Children’s Defense Fund, Community Catalyst, Food Research and Action Center, NAACP, National Alliance on Mental Illness, National Association of Community Health Centers, National Education Association, and UnidosUS.
Stakeholders from multiple sectors are increasingly recognizing the importance of affordable housing to their own priorities and goals. The Opportunity Starts at Home campaign seeks to mobilize powerful new constituencies beyond housing to ensure that people with the lowest incomes have access to safe, decent, affordable housing in neighborhoods where everyone has equitable opportunities to thrive.
Recent NLIHC research shows the U.S. has a shortage of 7.2 million rental homes affordable and available to extremely low income (ELI) renters, and 11 million ELI renter households are severely housing cost-burdened, spending more than half of their incomes on housing. There are only 35 affordable and available rental homes for every 100 ELI households nationwide, and no state has an adequate supply of affordable rental housing for the lowest income renters. Just one out of four eligible low income households receives federal housing assistance.
The consequences of America’s affordable housing crisis are spilling over into many other areas like the education, health care, civil rights, anti-hunger, homelessness, and anti-poverty sectors. By combining voices and expertise, leading organizations from these sectors seek to build a broad national movement that promotes federal policies that protect and expand affordable housing.
The long-term goals of the campaign are to promote federal policies that:
The campaign will also act to defend against funding cuts and harmful policy changes in existing low income housing programs.
Opportunity Starts at Home is also working to strengthen the capacities of multi-sector state coalitions that share the campaign’s goals. The campaign has already issued capacity-building grants to partners in seven states: California, Idaho, Maine, New Jersey, Ohio, Oregon, and Utah.
“The time to act is now,” said Diane Yentel, NLIHC president and CEO. “The housing affordability problem has reached historic heights. Federal housing assistance is chronically underfunded and faces increasing threats. It’s time for those who believe that everyone in America deserves a safe and affordable home to join in a movement that will ensure fundamental opportunities for people most in need.”
“UnidosUS is dedicated to improving opportunities for Latinos and we’re especially proud of our work over the past 50 years to empower Latinos to contribute and to share in the nation’s economic opportunities,” said Eric Rodriguez, UnidosUS vice president for policy and advocacy. “A good home is the foundation for many of those opportunities: a better education for our children, enhanced employment opportunities, and a safe and stable place for families to live. We joined Opportunity Starts at Home because too many hardworking families struggle to keep a roof over their heads and it will take all sectors of society to make progress and ensure that more Americans, including Latinos, have a place to call home.”
“The United States cannot say we cherish our children when millions of extremely poor children each year suffer through homelessness or are denied access to safe and affordable housing,” said Richard Hooks Wayman, national executive director of the Children’s Defense Fund. “Research shows that half of our intelligence potential is developed by age four. Positive child development is linked to a sense of safety, predictability, and routines. We must do our part to ensure that children have housing stability during a critical stage of development. We must do our part to ensure that housing in this nation is affordable and accessible. And we must do our part to ensure that investments in affordable housing production that keep children safe and secure is continued.”
“NAMI is proud to be a part of this multi-sector housing campaign because access to decent, safe and affordable housing is a critical need for people living with a mental illness,” said Andrew Sperling, director of legislative and policy advocacy at the National Alliance on Mental Illness. “It is simply not possible to achieve recovery and a full life in the community without stable housing. Given the current threats to rental assistance programs it is critical that NAMI joins with our partners across so many diverse sectors to fight for policies and future investments in affordable rental housing programs.”
“NEA is committed to the three million members and the 50 million students we serve and are pleased to support programs, campaigns and initiatives that are in support of students, educators and families,” said Lily Eskelsen Garcia, president of the National Education Association. “We understand and know firsthand the impacts affordable and stable housing have on student success. We also know that given the wages and income of some of our members, it impacts where they work as well as their own families.”
“The NAACP is proud to join this multi-sector housing campaign as it aligns with our goal of economic equality in housing,” said Derrick Johnson, president and CEO of the National Association for the Advancement of Colored People (NAACP). “The research is increasingly clear that housing affects all aspects of a quality life; therefore, federal housing policy is very important for the people we serve. We find that threats to federal housing assistance are unprecedented and this campaign will indeed shed a brighter light on the needs of all people.”
“Housing affordability is one of the greatest challenges facing our nation. It limits economic mobility, reinforces racial inequities, reduces health and education outcomes, and is a primary driver of homelessness in the United States,” said Nan Roman, president and CEO of the National Alliance to End Homelessness. “The Opportunity Starts at Home campaign brings together an unprecedented multi-sector coalition, focused on increasing critically needed federal investments in affordable housing. We are honored to be part of this important effort.”
“No one should be without a safe and stable home, which is why the Opportunity Starts at Homecampaign is so critical, especially now,” said Ali Solis, president and CEO of Make Room Inc. “By partnering with organizations from the healthcare, housing and education sectors who share our mission, Make Room hopes to accelerate our goal of creating a country where everyone has a home that they can afford. We are honored to be part of this important campaign.”
“Too often, the issues of housing, health, education and income security are considered in silos, separate from one another,” said Doug Rice, senior policy analyst for the Center on Budget and Policy Priorities. “But a home is much more than just four walls and a roof; it’s the pathway to a healthier, more prosperous, and more secure life, and something that far too many Americans cannot attain. We are excited to join forces with leaders in so many fields to advance effective solutions to help our nation’s most vulnerable.”
“A stable, affordable home is a prescription for good health,” said Dr. Megan Sandel, principal investigator with Children’s HealthWatch. “Children’s HealthWatch is excited to join our colleagues on the Opportunity Starts at Home campaign to identify solutions that provide access to safe, decent, affordable housing in neighborhoods where everyone has equitable opportunities to thrive.”
Learn more about the Opportunity Starts at Home campaign at: www.OpportunityHome.org
Opportunity Starts at Home is a new national multi-sector campaign to generate widespread support for federal policies that protect and expand affordable housing.
Established in 1974 by Cushing N. Dolbeare, the National Low Income Housing Coalition is dedicated solely to achieving socially just public policy that assures people with the lowest income in the United States have affordable and decent homes.
Courtesy of Opportunity Starts at Home, NLIHC
By Kendra Gravelle | firstname.lastname@example.org
SOUTH KINGSTOWN – During a briefing and panel discussion on affordable housing hosted by the Washington County Coalition for Children, the theme was clear.
“We need more housing,” Annette Bourne, research and policy director at HousingWorks RI, said Wednesday morning to a packed room at Thundermist.
Housing prices across southern Rhode Island are some of the highest in the state, Bourne explained.
“And the incomes that are needed to support these home prices… it’s quite a barrier,” she said.
In Narragansett, where just 3.8 percent of the year-round housing stock is affordable, the median price for a single family home is $420,000, according to the HousingWorks RI 2018 Housing Fact Book. An income of $108,501 would be needed to afford that.
In South Kingstown, meanwhile, the median price for a single family home is $349,000, which would require an income of $97,050. Of South Kingstown’s year-round housing stock, just 5.6 percent is currently affordable.
And in terms of entry-level homes, Jennifer Krueger, who works for the Jonnycake Center of Peace Dale and served on the South Kingstown Affordable Housing Collaborative, pointed out Wednesday that there just aren’t enough on the market.
“So if you want to buy a home, it’s really, really challenging,” she said.
Bourne added that there’s also insufficient rental stock in southern Rhode Island.
“And, again, to be able to afford [what is available] you’re looking at income ranges hovering around $55,000 to $60,000,” she continued. “We’re not talking about people who are characterized as abject poverty.”
Bourne’s presentation preceded a panel discussion by James Comer, executive director of the Women’s Development Corporation, Rep. Teresa Tanzi (South Kingstown, Narragansett), and Alice Buckley, executive director of the Washington County Community Development Corporation.
Amid a lively discussion, panelist identified several factors as contributors to Washington County’s lack of affordable housing, including low wages, a lack of available funding, and the “not in my backyard,” or NIMBY, phenomenon.
Comer attributed the “NIMBY mindset” to a general misunderstanding of affordable housing.
“If you ask the average person what they conceive of affordable housing, the image they get is… this monolithic project that is full of crime and drugs and all these negative social connotations,” Comer said.
Buckley added that “it’s all about fear of the unknown.”
There are, in fact, all sorts of residents who require affordable housing. During her presentation, Bourne identified retired people, single parents and veterans as a few examples of residents who may benefit from affordable homes.
There are also different types of affordable housing, Bourne added. Market-priced affordable homes, for example, include homes that are affordable and for which homeowners can expect to pay no more than 30 percent of their income. Long-term affordable homes, on the other hand, are deed restricted.
Affordable housing units can be built to blend in with other area housing, Comer pointed out, citing the example of Charlestown’s ChurchWoods.
“It is beautiful,” Comer said of the 24-unit low-income rental complex for seniors, developed by Washington County CDC. “It is integrated into its community, it looks great and the average person driving by has no idea it’s affordable housing.”
As for work at the Statehouse that could positively affect Rhode Island’s affordable housing crisis, Tanzi, who serves as vice-chair of the House Committee on Finance said she’s “painfully aware of all of the issues that exist in the lack of funding,” for affordable housing, shared a few initiatives she’s working on.
Tanzi pointed out she and her colleagues are trying to push through a bill that would ban discrimination against tenants on the basis of their source of income.
“The source of your dollar shouldn’t matter,” she said, adding the outlook for that legislation has become “increasingly more hopeful.”
“I know that there’s an increase in knowledge about the barrier that that type of discrimination presents,” she continued.
But while the outlook for that legislation seems promising, Tanzi admitted that funding for affordable housing has not been a priority in the General Assembly.
“The priority has not been around these types of issues,” she said. “It’s been about reducing the car tax, it’s been about reducing business taxes, about holding the line on increasing costs. It’s about cutting taxes, it’s about where do we rank nationally, and to me those priorities are all wrong.”
Unlike in most other New England states, in Rhode Island, there is no permanent stream for creating affordable homes. Existing state programs are funded by occasional bonds.
“We are looking for a dedicated housing stream that builds homes and contributed to the upkeep of homes that are affordable to most Rhode Islanders,” said Bourne, who pointed out that Massachusetts spends some 20 times more per capita on affordable housing than does Rhode Island.
Raising the minimum wage is another way Tanzi said she hopes to address the issue. At the current Rhode Island minimum wage of $10.10 per hour, Tanzi noted it would take someone 67 hours of work per week to be able to afford housing.
That, Tanzi added, is “obviously unsustainable.”
“When we look at why there is an affordable housing problem well, we have a wage problem,” Comer added. “You look at wage growth over the past 40 years in the United States and it’s a flat line – it’s awful.”
Comer also pointed out that the lack of affordable housing is sort of an “invisible problem” in rural and suburban communities, adding that often the perception in rural areas is that it’s just people from urban areas who need affordable housing.
“And that couldn’t be further from the truth,” he continued.
Particularly in towns like Narragansett and South Kingstown, where the workforce is largely defined by tourism, affordability in housing is crucial.
“Where’s the bartender living? And the waitresses, and the housekeepers? Those are the people that we need to build housing for,” Buckley said, adding that affordable housing provides employers with a stable workforce.
“The people who are against [affordable housing] don’t understand the benefit,” Buckley continued. “They don’t understand the benefit of having people living here and working her and being part of the community.”
And while the importance of affordable housing may seem obvious–people need shelter–it’s also tied to several social determinants. Bourne said she considers housing as essential to well-being.
Buckley echoed that.
“[Affordable housing] really is key to improving education and health,” she said, adding that poor health is often linked to issues like unstable housing and food insecurity.
Bourne ended her presentation with a plea to help spread stories of the people who could benefit from affordable housing.
“Tell us about the kid who was moving three times a year who is now the star student because he or she no longer has to move every few months,” Bourne said.
She also encouraged a healthy dialogue with those who are opposed to affordable housing, noting also the pro-development YIMBY (“yes in my backyard”) movement that has sprung up in Massachusetts.
“And if we are the YIMBYs,” Bourne said to those in attendance, “we need to be showing up.”
Courtesy of The Narragansett Times
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