Planning and Development for Affordable Housing

Rhode Island General Law 42-55-5.3 requires applicants for a Comprehensive Permit in a Rhode Island municipality first obtain a Letter of Eligibility from RIHousing stating their eligibility to apply. Applications should be submitted to LOE@rihousing.com or via mail to 44 Washington Street, Providence, RI 02903, Attention: Ancillary Department.

Please allow a minimum of 15 business days (approximately 3 weeks) for application processing upon receipt of a completed application. Applications are reviewed in the order they are received. If you have a scheduled Planning Board meeting, be sure to account for this review period when submitting your materials.

RIHousing Land Bank program provides financing for eligible applicants to acquire undeveloped real estate, vacant lots, developed properties, or a combination thereof which are intended for the production of affordable housing.  Eligible applicants include non-profit organizations whose purpose includes providing housing and related facilities to persons and families of low and moderate income, state or local government, public housing authorities or any partnership or joint venture consisting of at least one of the entities described above.

Land Bank Loans are for a term up to twelve (12) months.  The interest rate for all Land Bank program loans will be set at closing in the amount of 3 month U.S. LIBOR plus 3%, but in no event shall the rate be less than 4% or greater than 7%.  Land Bank Loans will be limited to 97% of appraised value or purchase price, whichever is lower.

On a case-by-case basis, RIHousing will consider requests for predevelopment resources to Developers (as defined below) for costs associated with predevelopment loan activities.  Such activities (“Eligible Uses”) include, but are not limited to:

• Architectural and engineering studies, environmental assessments or the costs associated with other Development Professionals;
• Filing fees and/or costs and expenses incurred in obtaining permits and approvals and applying for public or private grants;
• Site control costs such as deposits under real estate purchase and sale agreements or to acquire options or extensions of options or purchase and sale agreements on real estate;
• Other predevelopment loan activities approved by RIHousing.

Maximum loan term is 24 months. The interest rate will be set at closing equal to the 2-year Treasury plus 150bps; in no event shall the rate be less than 4% or greater than 7%.  

Additionally, RIHousing will consider the use of Predevelopment Loan funds to provide an advance of project developer fee to pay development consultant fees only if the project can demonstrate that a permanent loan closing will occur within 120 days of receipt of the advance. 

Developers must submit a completed Predevelopment Loan Application for consideration by the Predevelopment Loan Committee composed of RIHousing staff.