PROVIDENCE - Rhode Island Housing expects to raise $306 million through the sale of bonds to private investors and the federal government, the quasi-governmental organization announced Monday.

Rhode Island Housing said the U.S. Treasury Department plans to purchase $13.9 billion in housing bonds nationwide from Housing Finance Agencies (HFAs). The agencies must also sell private bonds to get the federal money.

Rhode Island Housing said it expects to sell $113 million on the private retail market. With the addition of $193 million in proceeds from the sale of bonds to the federal government, the organization expects to generate $306 million.

Rhode Island Housing said it would use the money to provide almost 1,000 low-interest, locally serviced mortgages for first-time homebuyers. The money will also help the agency finance more than 1,800 new and refurbished affordable rental homes.

“These much-needed funds will help breathe new life into our job market and housing market while continuing to keep our mortgage rates low for the whole year,” Richard Godfrey, executive director of Rhode Island Housing, said in a statement.

Godfrey said his organization has already started issuing the private bonds necessary to secure federal participation. The initiative, part of the Obama administration’s Making Home Affordable program, was developed by the White House, Treasury, the U.S. Housing and Urban Development Department and the Federal Housing Finance Agency, in consultation with HFAs, Fannie Mae and Freddie Mac.

“This economy has meant fewer resources are available to help more people, therefore our belts continue to tighten and the need is greater than ever before,” Godfrey said. “It is encouraging that this initiative will help us keep our rates low throughout all of 2010, and that is a major triumph for Rhode Island. Because we are an HFA, we can also offer extra assistance like 100 percent financing, down payment assistance and local servicing.”

He added: “Coupled with this new ability to retain low rates throughout the year, this is definitely great news for Rhode Islanders about to look for a home.”