Voters approved a bond measure that includes up to $10 million for creating a public housing entity.
Rhode Island state leaders are considering using public funds for affordable housing development after voters approved a $120 million housing bond that includes $10 million for public housing development.
As Jared Brey explains in Governing, “While it’s not clear exactly how the program will work, or even whether it will happen, advocates have been pushing for the state to create a public development entity similar to one used in Montgomery County, Maryland. There, the county invests directly in mixed-income housing projects, and instead of profiting off the market-rate units, it uses the income to subsidize reduced rents for lower-income people and reinvests its equity in other projects.”
More cities and states are experimenting with funding models that can support affordable housing even in the absence of federal assistance (President-elect Trump has proposed further cuts to housing vouchers and other federal assistance programs).
As the pandemic exacerbated the housing crisis, Rhode Island put more funding into affordable housing, investing $330 million in American Rescue Act dollars in housing programs. However, this only produced roughly 1,500 new housing units, signaling the inefficiency of the existing development system. Proponents of a state development entity suggest it could help direct state funds more effectively to mixed-income developments.
FULL STORY: Rhode Island Could Create a 'Public Developer' to Address Housing Crisis
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