WDC: Womens Development Corporation

Financing Sources

>> BUILDING HOMES RHODE ISLAND ($50-MILLION STATE BOND). This Program is designed to encourage the production of rental housing and the development of homeownership opportunities through the allocation of financing from the State as approved by the electorate on November 7, 2006.

>> Low Income Housing Tax Credits (LIHTC) This is a federal program administrated at the state level.  State housing agencies issue a Request for Proposal (RFP), review applications and select recipients based on criteria identified in the Qualified Allocation Plan (QAP).  Recipients generally partner with large corporations that have high tax liabilities.  The corporations, acting as limited partners, provide equity funds in exchange for the tax credits.

>> Community Development Block Grant (CDBG) Federal funding for this program is also administered at the state level.  Funding caps for each municipality are based on a population formula.  Municipalities must present proposals to the appropriate state agency to receive these grant dollars.  CDBG funds are generally earmarked for programs that are related to low income housing and community development, rather than direct housing development.

>> HUD Section 202 Program, Supportive Housing for the Elderly This grant program is administrated by the U.S. Department of Housing and Urban Development annually.  Funds are granted through a competitive application process.  The grants include two parts, a capital advance for development costs and a project rental assistance contract to subsidize rental income.  Eligible residents are 62 years of age or older, and have incomes below 50% of area median income (AMI).

>> HUD Section 811 Program, Supportive Housing for Persons with Disabilities This grant program is also administrated by the U.S. Department of Housing and Urban Development annually.  Funds are granted through a competitive application process similar to the Section 202 Program.  The grants include two parts, a capital advance for development costs and a project rental assistance contract to subsidize rental income.

>> Thresholds Program This Rhode Island program is administrated on behalf of the Department of Mental Health, Retardation and Hospitals.  Recipients developing supportive housing for persons with disabilities are selected based in a competitive funding application process.  Funds are used in the development of independent living with supportive services and the development of group homes.

>> Neighborhood Opportunities Program (NOP) This Rhode Island Housing Resources Commission program provides funds for supportive housing for persons with disabilities.  This is a competitive funding application process.  Recipients use NOP funds to develop of independent living with supportive services and the development of group homes.

>> Foundation Grants Private foundations often provide funding to support affordable housing initiatives.

>> Local Initiative Support Corporation Funding (LISC) LISC is a national non-profit organization.  It provides funding for predevelopment costs that sponsoring organizations must pay up front to meet application requirements for development funding.  LISC also provides financing for development costs.

>> City Funds Some municipalities receive HOME funds or establish their own pool of funds to support affordable housing development.  The type, extent, use and administration of city funds are at the discretion of each city.

>> HUD Up Front Grant Program In addition to providing funding for elderly and supportive service housing, HUD allocates some funds for other types of affordable housing.  The Up Front Grant Program provides capital funds for acquisition, construction and rehabilitation of affordable housing.

>> HOME Investment Partnerships Program (HOME) The federal government allots funds for the HOME Program to the states and some cities.  States and cities have the flexibility to provide a combination of HOME loans and grants for the development of a variety of affordable housing.  In Rhode Island competitive funding rounds are held annually and awards are limited to $500,000 per project.

>> Federal Home Loan Bank (FHLB) The FHLB provides below market rates on financing for affordable housing initiatives.

>> State and Federal Lead Funds Funding is available for the reduction and removal of lead in housing for families with children.  These funds are often used to repaint interior and exterior building surfaces and to replace old windows and doors.

>> Energy Star Program Units that meet or exceed energy star homes' requirements qualify the builder for rebates.  In addition, the use of approved lighting products and appliances also provides the builder with rebates.

>> Rhode Island Land Bank The land bank provides predevelopment loans for the purchase of property.  Applications in competitive funding rounds for LIHTC, HUD, HOME and other funds are more successful if the sponsor has evidence of site control.

>> State of Connecticut Housing Tax Credit Contribution (HTCC) This program is Connecticut's version of the LIHTC Program.  It is designed to increase the private sector's involvement in affordable housing development. 

>> Private Loans Traditional loans from banks or other financial institutions can fill financing gaps in affordable housing development projects.

>> U.S. Department of Agriculture, Rural Development (USDA-RD) This federal agency funds the development of affordable housing in rural areas that often are difficult and costly to develop with funds from other sources.

>> State Historic Tax Credit Some states, including Rhode Island, provide tax credits to rehabilitation projects involving historic buildings.  Historic Preservation Agencies assess proposals to ensure that historic elements are maintained.  They monitor construction activities and materials.  Historic buildings in disrepair are often located in urban areas and town centers, making them good sites for the development of affordable housing.

>> Project Based Section 8 Section 8 funding provides rental subsidies.  Project-based subsidies provide projects with predictable operating income and permit occupancy by very low income households.