Where did the $250M in ARPA money for housing go? These projects will get a piece.

Patrick Anderson, The Providence Journal
Updated ·5 min read

Gov. Dan McKee's administration has awarded $101 million to 23 housing projects across the state while debate about the best ways to increase the housing stock and combat the affordability crisis heats up at the State House.

The new project funding was approved on Thursday by the Rhode Island Housing board of directors and, combined with other pots of financing, is expected to create or maintain 1,481 housing units in total. Most of the $101 million comes from the federal government and is part of the $250 million in American Rescue Plan funds approved for a variety of housing-related uses.

"It is no secret Rhode Island has building challenges at multiple levels, and for Rhode Island to be an attractive place to live and work, to raise a family, we must address the availability of quality housing," McKee told the housing board before the votes. "That means everything from providing supports for those experiencing homelessness, [to] increasing affordable housing, to ensuring we build more workforce housing for the working class."

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State Housing Secretary Stefan Pryor cautioned on Thursday that allocating money and seeing it spent are two different things. The 23 projects, all in various stages of development, will need additional financing, permitting and other steps before they can be built.

What will the money be used for?

Of the $250 million approved for housing programs last year, $155 million is for production, and $115 million of that has been allocated so far by Rhode Island Housing, according to a McKee news release. Adding in the money awarded without going through RI Housing, $147 million of the $250 million has been allocated, Department of Housing spokesman Joseph Lindstrom said.

The project awards come two weeks after McKee proposed a budget amendment adding another $29 million in federal funds for housing (on top of the $250 million approved last year) plus the creation of a state low-income-housing tax credit and a new "proactive development subsidiary of Rhode Island Housing."

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That potential expansion of the state Housing Department could meld with separate legislative proposals from Rep. June Speakman and Sen. Meghan Kallman to create a state housing developer.

House Speaker K. Joseph Shekarchi has said he is interested in exploring new social or public housing creation programs, such as a revolving fund based on one in Montgomery County, Maryland. And lawmakers put aside $10 million of the $250 million approved last year for public housing authorities.

Just last week, the Housing Department issued a request for proposals from public housing authorities to use half of the $10 million this year, Lindstrom said. The remaining $5 million will not be committed before the end of the fiscal year on June 30, but could be rolled into the state budget lawmakers are working on now for the year starting July 1.

"How do we aim to remedy the imperfections of the market that are holding us back and keeping us in last position for housing production in the country?" Pryor asked the House Finance Committee on Wednesday when speaking about the proposed development subsidiary. "This is an entity that could acquire land, assemble land, could help to fill out that capital stack and work with public and private financial institutions and products to make this development happen."

Eminent-domain powers raise concerns

In addition to creating this new development subsidiary in the Department of Housing, McKee's budget amendment would also give Pryor eminent-domain power to seize property. That power has raised concerns from Republicans and Democrats in the General Assembly who worry that, as written, there would be few checks on Pryor's ability to use eminent domain, a power that was often abused in the mid-20th century.

"Now we have legislation which would allow Stefan Pryor to take someone’s home, although it is not blighted, and give it to someone else for housing," state Republican Party Chairman Joe Powers said Wednesday in a news release titled "Taking Your Home Away."

"This is not only unfair, but probably unconstitutional," it said.

At least some of those concerns are shared by Shekarchi.

"There seems to be a broad base of authority granted to the secretary," he said. "It is not personal to Secretary Pryor, but I generally like to have guardrails around that. I am not saying we have to take that power away, but we have to certainly focus it and limit it to what it is intended to be for."

The first candidate for a new eminent-domain taking might be the former Memorial Hospital building in Pawtucket, which is going through a messy foreclosure proceeding and about which the Housing Department has said it is exploring condemnation.

Asked after addressing the Rhode Island Housing board whether he could guarantee that Pryor would not seize anyone's home if given eminent-domain power, McKee said, "We are going to use whatever authority we have to accomplish the goals we need to accomplish in a way that's appropriate."

What projects will get funding?

The 23 projects approved for funding by the Rhode Island Housing Board Thursday are:

  • Central Street Development, 62 units in Pawtucket/Central Falls

  • Rosebrook Commons, 64 units in Middletown

  • Southpoint Commons, 72 units in Westerly

  • Reynolds Farm Senior Housing II, 40 units in North Kingstown

  • Broad Street Homes, 47 units in Central Falls

  • Ade Bethune House, 54 units in Portsmouth

  • Potters Tigrai Apartments, 57 units in Providence

  • The Avenue, 85 units in Providence

  • Summer Street Apartments, 176 units in Providence

  • Lockwood Plaza Phase I, 209 units in Providence

  • Copley Chambers II & III, 124 units in Providence

  • Pocasset Reserve Phase I, 275 units in Tiverton

  • Ralph R. Russo Manor, 22 units in Johnston

  • Villages at Manville, 72 units in Lincoln

  • Millrace District, 70 units in Woonsocket

  • Studley Building, 65 units in Providence

  • East Point, 100 units in East Providence

  • Walker Lofts, 126 units in Lincoln

  • Georgiaville Place, nine units in Smithfield

  • Bernon Mills, 60 units in Woonsocket

  • 24 Inkerman Street, three units in Providence

  • Hive Apartments, 124 units in Providence

  • 25 Bough St. in Providence.

This article originally appeared on The Providence Journal: Projects building homes in RI will get $101 million in ARPA money