PROVIDENCE, RI – Today, U.S. Senator Jack Reed announced a new $12 million federal grant for RIHousing to finance the development, construction, and preservation of affordable housing.  These federal funds will help attract additional private and public investment to develop and finance affordable housing and support hundreds of jobs.

Senator Reed led the effort to create the Capital Magnet Fund 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 RIHousing for winning this competitive $12 million Capital Magnet Fund grant from Treasury’s Community Development Financial Institutions (CDFI) Fund, which builds on $16.6 million in Capital Magnet Fund grants RIHousing received in prior years.

RIHousing was one of 59 organizations nationwide to be selected by Treasury, which is awarding a total of $336.4 million through the program.

“I created the Capital Magnet Fund to expand access to affordable housing in a way that creates jobs and builds stronger communities.  I am thrilled RIHousing is receiving another major award to create more afford housing opportunities in Rhode Island,” said Senator Reed, a senior member of the Banking, Housing, and Urban Affairs Committee, which oversees federal housing policy.  “I know this money will be put to good work by RIHousing and their community partners.  And we must continue working together to expand affordable and sustainable housing opportunities.  In this challenging housing market, it is essential that we build more affordable housing and this federal funding will help attract essential housing invesments.”

The Capital Magnet Fund requires recipients to leverage at least $10 of housing and economic development investments for every $1 of federal funds.

“Rhode Islanders need homes they can afford, and every dollar of financing received goes a long way to ensuring families have a roof over their heads, individuals working in the construction and allied fields remain employed, neighborhoods are revitalized, and our state is made stronger,” said Carol Ventura, Executive Director of RIHousing. “We are very grateful to Senator Reed for his leadership and commitment to providing solutions to the challenges we are facing.”

Between its three Capital Magnet Fund grants, RIHousing estimates that a total of 3,700 affordable housing units will be supported, helping to create more than 2,275 jobs.

The 59 awardees were selected by Treasury from 146 applications this year, with requests for federal funding totaling nearly $1 billion.  More information on this year’s awards is available here.