R.I. Housing awards $500K grant to R.I. LISC

THE RHODE Island Local Initiatives Support Corp. has been awarded a $500,000 grant from Rhode Island Housing for its Recoverable Grant Fund.
THE RHODE Island Local Initiatives Support Corp. has been awarded a $500,000 grant from Rhode Island Housing for its Recoverable Grant Fund.

PROVIDENCE – The Rhode Island Local Initiatives Support Corp. has been awarded a $500,000 grant from Rhode Island Housing for its Recoverable Grant Fund, a revolving loan fund available to community development corporations for financing early-stage expenses.

“Our partners like LISC and neighborhood CDCs play an essential role in expanding access to affordable homes for low- and moderate-income families,” Barbara Fields, Rhode Island Housing executive director, said in a statement. “The Recoverable Grant Fund is a great investment because it allows developments to get off the ground in the critical early stages when not all funding sources may be identified or committed yet.”

The Recoverable Grant Fund can be used to pay for architectural and appraisal fees.
Then, when a development secures all financing, the assistance is repaid and made available to other eligible developers, according to a news release from Rhode Island Housing.
Founded in 1991 with a $700,000 grant from Rhode Island Housing, the Recoverable Grant Fund has provided approximately $6.4 million in predevelopment assistance to more than 30 Rhode Island CDCs.
Said Jeanne Cola, Rhode Island LISC executive director, “Rhode Island Housing’s continued investment in the Recoverable Grant Fund will allow us to provide early funding to developments that are waiting to get off the ground.”
Rhode Island LISC has requests for predevelopment assistance for proposed developments expected to generate nearly $10 million in development activity.
The fund relies on contributions from the public sector, private companies and philanthropic organizations. It has been affected by the nationwide economic downtown in recent years, but thanks to the $500,000 grant, the fund has been more than doubled, the release said.

“The Recoverable Grant Fund has helped jump-start several of our signature affordable housing initiatives,” Joe Garlick, NeighborWorks Blackstone River Valley executive director, said. “This fund allows community developers to take the first step in making major investments in our neighborhoods.”

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