TOD and Department of Housing Updates
Rhode Island's Department of Housing is actively involved in various initiatives and updates. The state is working on improving its building permit processes and addressing rent increases in cities like Providence. A new one-stop application for affordable housing has also been launched, with significant funding opportunities available for developers to build and preserve affordable housing units.
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TOD and Department of Housing Updates Land Use Commission December 7, 2023
Todays Conversation Rhode Island Department of Housing Updates and Recent Progress TOD Presentation 2 Rhode Island Department of Housing
RI 2022 Housing Permits Rhode Island currently ranks 2 Rhode Island currently ranks 2nd residents in the United States residents in the United States nd to last in building permits per 1,000 to last in building permits per 1,000 Census Building Permit Survey data* shows the following data on privately owned housing units for 2022: Building Permits in the US per 1,000 Residents 14 12 11.17 10.63 10.19 9.84 9.7 10 1,057 buildings permitted for a total of 1,371 housing units 8 6 4 2.52 1.57 1.25 2 0 * This data has limitations. It is reported information from municipal building officials and does not include conversions (changing a mill building into apartments for example). It is likely that this data undercounts new units permitted in the state. The Department is working with stakeholders to better understand that count and improve our data and reporting infrastructure. DC SD ID FL UT MA CT RI Top states for building permits per 1000 residents RI and neighbors building permits per 1000 residents 3 Rhode Island Department of Housing Source: 2022 Census Building Permits Survey
Rent Increase in Providence Providence had a 7.5% increase year over year in Zillow s rent index, the Providence had a 7.5% increase year over year in Zillow s rent index, the highest of any city in the country highest of any city in the country1 1 Relevant regional rankings: Providence (1st) 7.5% Hartford (2nd) 7.1% Buffalo (3rd) 6.3% Boston (7th) 5.1% New York City (20th) 3.3% United States 3.2% 4 Rhode Island Department of Housing 1Zillow s data is not clear on whether it is City proper or Metro
One-Stop Application for Affordable Housing Open $90+ million in funding available $90+ million in funding available The RFP was released last week Developers can apply for funding to build and preserve affordable housing Applications are due January 16 Includes a mix of federal programs (LIHTC, HOME, HOME-ARP, Housing Trust Fund, Capital Magnet Fund) and State-funded programs (Community Revitalization Program, Acquisition Revitalization Program, Middle Income Loan Program, Priority Projects Fund, Transit Oriented Development projects, and the Housing Production Fund s allocation for Extremely Low Income Operating Support) Includes over $65 million in State Fiscal Recovery Funds 5 Rhode Island Department of Housing
Building Housing Expanding Options and Affordability Support for Cities and Towns Support for Cities and Towns Municipal fellows' program to support capacity -- $1.4M $1.4M Technical assistance specific to Transit- Oriented Development -- $1M Infrastructure related to housing development -- $4.3M $4.3M Support for efforts to address homelessness -- $2.5M $2.5M $1M
Low Income Housing Tax Credits (LIHTC) Both of our neighboring states (and 6 out of 8 northeast states) have enacted a state LIHTC program. State LIHTC programs mirror the federal LIHTC program and offer state-funded tax credits to developers of affordable housing State LIHTC program enacted No state LIHTC program 7 Rhode Island Department of Housing
Proactive Development Entity Being established as a subsidiary of RI Housing to initiate proactive projects and development of independent housing projects. Goal is to boost housing production. Demonstrates that we are taking charge of housing development, seeking innovative approaching, and leveraging successful models to address Rhode Island s housing needs. 8 Rhode Island Department of Housing
School Impact Study RFP Aims to address concerns regarding the impact of new housing developments, particularly affordable housing, on local public schools, and seeks to understand: How housing impacts infrastructure, resources, and overall performance of public schools How a holistic approach can be taken to guide future housing planning decisions 9 Rhode Island Department of Housing
State Housing Plan Main goal: make the case for increasing housing production as a way to mitigate the housing affordability crisis. Working with ABT and RI League of Cities and Towns to develop this plan. Actionable plans anticipated to include: Assessment of current and future housing needs; Evaluation of housing and homelessness; Identification of barriers to housing development, home ownership, affordability, and preservation of existing affordable housing; opportunities and means for increased investments toward disproportionately impacted individuals and communities; Incorporation of approaches to increasing household income to enable Rhode Islanders to cover housing costs. 10 Rhode Island Department of Housing
Winter Shelter Strategy Four essential strategies to reduce homelessness this winter: Prevention Collaboration Expansion 11 Rhode Island Department of Housing
Winter Shelter Strategy: Prevention Expanded focus on homelessness prevention and diversion. Legal Services: Legal Services: Reducing evictions through ongoing investment in legal counsel for low- income Rhode Islanders. Housing Problem Solving: Housing Problem Solving: Investing $750,000 in flexible financial assistance plus $1 million in counseling for housing problem solving. RI Foundation establishing a way Rhode Islanders can contribute, as well. Interagency Efforts: Interagency Efforts: Dedicating a position to coordinating across state agencies based at the department of housing and with EOHHS and DOA 12 Rhode Island Department of Housing
Collaboration with Faith Communities 13
Winter Shelter Strategy: Expansion With new shelter beds and seasonal centers coming online. Total beds with warming centers Total beds with warming centers 1370 1370 Up more than 220 beds from Jan. Path to a 30+% increase in Jan. 2024 1171 1171 1156 1156 1123 1123 Continued expansion includes: 1052 1052 Zambrano Cottages, Burrillville 789 789 Harvest Community Church, Woonsocket Emmanuel House, providence OCT 2022 JAN 2023 APR 2023 JUL 2023 OCT 2023 JAN 2024 (PROJECTED) Charlesgate, Providence WARM Family Shelter, Washington County 14 Rhode Island Department of Housing
Rapidly Deployable Pallet Shelters Non Non- -congregate, low congregate, low- -barrier shelter options barrier shelter options Timing: Late winter (2024) Rapidly deployable pallet shelters Potentially in Pawtucket or in Providence Likely service provider partner: House of Hope CDC 30 to 45 pallet shelters expected to come online this winter Other temporary structures may be explored at these sites 15
Department of Housing FY25 Budget Submission
Preliminary resource needs Proposals are preliminary drafts and have not yet been vetted by OMB and the Governor s Proposals are preliminary drafts and have not yet been vetted by OMB and the Governor s Administration Administration Increasing housing production via sustained and new tools Increasing housing production via sustained and new tools: Discussing a combination of bond resources ($100 million requested), remaining SFRF dollars, and new funding sources. Would target financing resources, municipal partnerships, and investments that build the pipeline moving forward. Addressing homelessness Addressing homelessness: pursuing resources for emergency response, municipal engagement, and supportive housing Housing stability and homelessness prevention Housing stability and homelessness prevention: Emergency Housing Assistance Program: up to $7,000/household to prevent eviction, offer emergency transitional assistance Continue legal assistance investments Community revitalization & home repair Homeownership Homeownership: pending availability of remaining SFRF funds, discussing options for continuing Downpayment Assistance Program 17
Illustrative Housing Bond Discussing $100m request for housing and homelessness Discussing $100m request for housing and homelessness $50m Affordable Housing Development $4m Housing Related Infrastructure $12m Proactive Housing Development, Predevelopment, and Site Acquisition $10m Community Revitalization, Home Repair, and Blight Remediation $24m Homelessness Solutions and Permanent Supporting Housing (PSH) 18
Revenue sources Addressing Rhode Island s housing and homelessness challenges will require a Addressing Rhode Island s housing and homelessness challenges will require a commitment of resources that is significant and sustained commitment of resources that is significant and sustained Proposing for consideration and exploration multiple sources (not yet crystalized as proposals or vetted within the Governor s administration), including self-funding approaches and more equitable application of existing taxes Exploring many options with Revenue and OMB. 19
Transit-Oriented Development Technical Assistance ($1 million) for upzoning in Technical Assistance ($1 million) for upzoning in transit areas transit areas Newly enacted TOD program: Newly enacted TOD program: In the rulemaking process Drafting a solicitation for applications from municipalities. Invited and received input from statewide planning, RIDOT, RIPTA, League of Cities and Towns, HousingWorks RI, and Grow Smart RI Two-phased approach first, a tentative award based on identifying a potential TOD zone based on the language in the statute and regulations; then municipality procures a consultant and the award is finalized Presented on program regulations recently at Transportation Advisory Council and State Planning Council 21
Legislation H6084 TOD pilot program to be established as of January 1, 2024 Requires the Department of Housing to create regulations Criteria to qualify for the program, application process Requirements of TOD zoning Reporting requirements Penalties for non-compliance 22 Rhode Island Department of Housing
TOD Districts/Zoning Requirements for the Pilot Density Density Minimum of 10 du/acre - statutory Affordable Housing Affordable Housing Minimum 10% of units at 80% AMI Ease parking requirements Ease parking requirements .75 1.5 spaces/du Ease dimensional requirements Ease dimensional requirements As compared to underlying zoning Must be within mile radius of a regional mobility hub or 1/8 mile radius of frequent transit stop 23 Rhode Island Department of Housing
TOD Districts/Zoning Zoning must be as right Must incorporate smart growth principles Must incorporate low impact development strategies Must be suitable for families Cannot restrict to seniors, limit the number of bedrooms or limit the number of occupants 24 Rhode Island Department of Housing
TOD Pilot Funding Process Department will review proposed TOD zoning in 2 phases Prior to adoption and post-adoption Pilot program funds will be awarded through a competitive process. 25 Rhode Island Department of Housing
TOD Pilot Program Regulations Reporting Reporting A Annual report to department Key data points such as total land area, number of units created, number of affordable housing units created Penalties Penalties If a TOD district falls out of compliance, projects within the district will not be eligible for the TOD funding Rhode Island Department of Housing 26
