Providence American: RIHousing Wins $4.7 Million Capital Magnet Fund Grant

Published/Posted By: The Providence American
Posted: April 22, 2018

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 investment.

“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 $51,950.

Courtesy of Providence American

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