RI has $3.8M to build more income-restricted housing - but will towns play ball?

PROVIDENCE — The state will use $3.8 million in federal grant money to tackle negative perceptions in specific "health equity zones" around income-restricted housing, as well as other housing issues.

What happened: Rhode Island was among 21 recipients of the first round of grant funding from the federal Department of Housing and Urban Development for the Pathways to Removing Obstacles program.

• All of the 21 recipients, which were mostly municipalities, received between $1 million and $6.6 million.
• So many applications were made that they far exceeded the money available.
• A total of $85 million was awarded this cycle, and Rhode Island can apply for more funding later in the summer.

Why it matters: Rhode Island is in a housing crisis, with not enough units to rent or buy as fewer new units have come onto the market than elsewhere in the country.

What they're saying: U.S. Housing and Urban Development Assistant Secretary Kimberly McClain urged the state to seriously consider "gentle density," by legalizing duplexes across the state and updating "outdated" land use policies. This year, the General Assembly approved accessory-dwelling units.

Where will the money go: Rhode Island asked for $9.6 million, but received $3.8 million. State officials have said that they will need to retool their original application to accommodate the lesser amount.

Outgoing Housing Secretary Stefan Pryor said Rhode Island will "rejigger" its priorities. The focus appears to be:

• Creating "Health Equity Zones" in Washington and Bristol counties
• Creating "tool kits" to mediate local concerns about new housing
• Providing technical assistance to municipalities
• Supporting nonprofit developer capacity
• To "create consistent regulations statewide"

Public perception: Officials said much of the proposed work, and the Health Equity Zones, surround changing public perception around income-restricted or subsidized housing. McClain talked about how important income-restricted housing is for anyone working as servers, as cleaners, in retail, especially in Rhode Island's wealthiest communities.

Communities have pushed back against density, housing: While officials all spoke about the need to destigmatize housing for people at, below, or slightly above the area median income, also referred to as "affordable housing," officials in Narragansett (which is in the proposed Washington County Health Equity Zone) and other communities have been trying to make it harder to build new housing, particularly if it has any density (more units in less geographic space).

• While the General Assembly has been pushing pro-density housing changes, some towns have pushed back.
• Narragansett was looking at banning duplexes in the few parts of the town that would allow them.
• Narragansett already increased its zoning standards to negate increased leeway for setbacks approved during the 2023 legislative session. House Speaker K. Joseph Shekarchi, who pushed the changes, said at the time that it was a "direct contravention of the spirit and intent and the legal requirements of the law."
• Warren's planning board tried to stop an income-restricted project before walking back its decision because it would have been sued.

How would the state have spent the $9.6M?

In a perfect world: Rhode Island wanted to spend most of the money in Washington and Bristol counties, two counties where nonprofit housing developers don't have as big a foothold. In the original ask:

• $5.7 million was requested to "jump start development" in Washington and Bristol counties
• Of that $5.7 million, $4 million would secure land and
• $1.5 million would pay for predevelopment costs

The rest of the money would have gone to:

• $630,000 to pay for experts to help around the state, including for the state Special House Commission on Land Use
• $2.7 million to expand the state's Health Equity Zones to Bristol and Washington counties to create "grassroots advocacy" to "gain support" for new housing.
• $525,000 to "establish and support nonprofit developer capacity"

Land and predevelopment: The state has been making a concerted effort, largely with its one-time federal stimulus funds, to pay for land acquisition and predevelopment on projects. Developers say this is incredibly helpful as it costs a lot of money to be paying a loan on land that isn't producing income.

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Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter