TOD and Department of Housing Updates

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TOD and Department of Housing Updates
 
Land Use Commission
December 7, 2023
 
 
 
Today’s Conversation
 
Rhode Island Department of Housing
 
2
 
Rhode Island Department of Housing Updates and Recent Progress
TOD Presentation
 
 
 
RI 2022 Housing Permits
 
Rhode Island Department of Housing
 
3
 
Rhode Island currently ranks 2
nd
 to last in building permits per 1,000
residents in the United States
 
Census Building Permit Survey data* shows the
following data on privately owned housing units for
2022:
1,057 buildings permitted for a total of 1,371
housing units
 
 Source: 2022 Census Building Permits Survey
 
* 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.
 
 
 
Rhode Island Department of Housing
 
4
 
Relevant regional rankings:
Providence (1
st
) – 7.5%
Hartford (2
nd
) – 7.1%
Buffalo (3
rd
) – 6.3%
Boston (7
th
) – 5.1%
New York City (20
th
) – 3.3%
United States – 3.2%
 
Providence had a 7.5% increase year over year in Zillow’s rent index, the
highest of any city in the country
1
 
1
 Zillow’s data is not clear on whether it is City proper or Metro
 
Rent Increase in Providence
 
 
 
One-Stop Application for Affordable Housing Open
 
Rhode Island Department of Housing
 
5
 
$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
 
 
Building Housing – Expanding Options and Affordability
 
Support for Cities and Towns
 
Municipal fellows' program to support
capacity -- 
$1.4M
Technical assistance specific to Transit-
Oriented Development -- 
$1M
Infrastructure related to housing
development -- 
$4.3M
Support for efforts to address
homelessness -- 
$2.5M
 
 
 
Low Income Housing Tax Credits (LIHTC)
 
Rhode Island Department of Housing
 
7
 
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
 
 
 
Proactive Development Entity
 
Rhode Island Department of Housing
 
8
 
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.
 
 
 
School Impact Study RFP
 
Rhode Island Department of Housing
 
9
 
Aims to a
ddress 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
 
 
 
State Housing Plan
 
Rhode Island Department of Housing
 
10
 
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.
 
 
 
Winter Shelter Strategy
 
Rhode Island Department of Housing
 
11
 
Four essential strategies to reduce homelessness this winter:
 
Prevention
 
          Collaboration
 
            Expansion
 
 
 
Winter Shelter Strategy: Prevention
 
Rhode Island Department of Housing
 
12
 
Expanded focus on homelessness prevention and diversion.
Legal Services: 
Reducing evictions through ongoing investment in legal counsel for low-
income Rhode Islanders.
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: 
Dedicating a position to coordinating across state agencies – based
at the department of housing and with EOHHS and DOA
 
 
Collaboration
with Faith
Communities
 
13
 
 
 
Winter Shelter Strategy: Expansion
 
Rhode Island Department of Housing
 
14
 
With new shelter beds and seasonal centers
coming online.
Up more than 220 beds from Jan.
Path to a 30+% increase in Jan. 2024
Continued expansion includes:
Zambrano Cottages, Burrillville
Harvest Community Church, Woonsocket
Emmanuel House, providence
Charlesgate, Providence
WARM Family Shelter, Washington County
 
Rapidly Deployable Pallet Shelters
 
15
 
Non-congregate, low-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
undefined
 
Department of Housing
FY25 Budget Submission
 
Preliminary resource needs
 
17
 
Proposals are preliminary drafts and have not yet been vetted by OMB and the Governor’s
Administration
 
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
: pursuing resources for emergency response, municipal engagement, and supportive housing
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
: pending availability of remaining SFRF funds, discussing options for continuing Downpayment Assistance
Program
 
 
Illustrative Housing Bond
 
18
 
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)
 
Revenue sources
 
19
 
Addressing Rhode Island’s housing and homelessness challenges will require a
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.
undefined
 
TOD
 
Transit-Oriented Development
 
21
Newly enacted TOD program:
In the rulemaking process
Invited and received input from statewide
planning, RIDOT, RIPTA, League of Cities and
Towns, HousingWorks RI, and Grow Smart RI
Presented on program regulations recently at
Transportation Advisory Council and State
Planning Council
 
 
Technical Assistance ($1 million) for upzoning in
transit areas
 
Drafting a solicitation for applications from
municipalities.
 
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
 
 
 
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
 
Rhode Island Department of Housing
 
22
 
 
 
TOD Districts/Zoning Requirements for the Pilot
 
Rhode Island Department of Housing
 
23
 
Density
Minimum of 10 du/acre  - statutory
Affordable Housing
Minimum 10% of units at 80% AMI
Ease parking requirements
.75 – 1.5 spaces/du
Ease dimensional requirements
As compared to underlying zoning
Must be within ¼ mile radius of a regional
      mobility hub or 
1/8
 mile radius of frequent transit stop
 
 
 
 
 
 
 
 
 
TOD Districts/Zoning
 
Rhode Island Department of Housing
 
24
 
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
 
 
 
TOD Pilot Funding Process
 
Rhode Island Department of Housing
 
25
 
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.
 
 
 
 
 
TOD Pilot Program Regulations
 
Rhode Island Department of Housing
 
26
 
Reporting
 
 A
nnual report to department
Key data points such as total land area, number of units created, number of
affordable housing units created
 
Penalties
 – If a TOD district falls out of compliance, projects within the district will not
be eligible for the TOD funding
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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.

  • Rhode Island
  • Housing Updates
  • Affordable Housing
  • Building Permits
  • Rent Increases

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  1. TOD and Department of Housing Updates Land Use Commission December 7, 2023

  2. Todays Conversation Rhode Island Department of Housing Updates and Recent Progress TOD Presentation 2 Rhode Island Department of Housing

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. Winter Shelter Strategy Four essential strategies to reduce homelessness this winter: Prevention Collaboration Expansion 11 Rhode Island Department of Housing

  12. 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

  13. Collaboration with Faith Communities 13

  14. 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

  15. 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

  16. Department of Housing FY25 Budget Submission

  17. 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

  18. 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

  19. 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

  20. TOD

  21. 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

  22. 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

  23. 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

  24. 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

  25. 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

  26. 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

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