RIHousing Uses Creative Financing Tool to Preserve Needed Senior Housing in Warwick
WARWICK, RI — U.S. Senator Jack Reed and Mayor Scott Avedisian joined Barbara Fields, Executive Director of RIHousing and representatives from Property Advisory Group and Cathedral Development Group to celebrate the completion of renovations at Greenwood Terrace, a housing development for low-income seniors on Post Road.
The event came as Rhode Island faces a serious housing shortage, particularly for the growing number of seniors and Millennials. The rehabilitation of Greenwood Terrace ensures that 53 apartments for seniors will be preserved for the next generation.
Greenwood Terrace Apartments is a garden-style apartment complex located just east of Warwick and Rhode Island malls. Originally constructed in 1978, the renovations provide upgrades for units, as well as for common areas, windows and roofs.
”I commend all the partners who helped make this project a reality. That includes the significant federal financing for this project. It is important for the federal government to be a reliable partner for states and communities to make smart investments in building and maintaining budget-friendly housing for seniors,” said Senator Reed, the Ranking Member of the Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (THUD). ”We must do a better job integrating affordable senior housing into existing communities so more seniors can live independently, staying engaged in their neighborhoods and connected to their communities.”
The primary source of funding for the preservation of this development is a $4.385 million permanent taxable loan insured through the U.S. Treasury-HUD Federal Financing Bank (”FFB”) HFA Multifamily Risk Sharing Loan Financing Initiative. Risk Share provides credit enhancement for mortgages of multifamily housing projects whose loans are underwritten, processed and serviced by housing finance agencies like RIHousing. HUD and the housing finance agency share in the risk of the mortgage.
Under the FFB program, RIHousing is able to provide reduced interest rates for the preservation of affordable multifamily apartments. The low interest rates and affordability of the units are locked in for the length of the loan term, which is 40 years for Greenwood Terrace.
”We are extremely grateful to be able to provide quality, affordable housing to our residents,” said Mayor Avedisian. ”Agencies like RIHousing, with support from our partners in federal government, make such options in Warwick a reality. With numerous municipal services available to all families, regardless of age or socioeconomic backgrounds, we strive to be a vibrant, safe and energized community for all residents who make their home here. The renovations to Greenwood Terrace will certainly add to the quality of life for all residents who live there.”
This development marks the seventh time RIHousing has financed the preservation of an existing development through the FFB Risk Sharing program. Rhode Island was the third state to be approved by HUD to use the program, after New York and Massachusetts.
”Rhode Island is facing a housing crisis, with seniors especially affected,” said Barbara Fields, Executive Director of RIHousing. ”RIHousing is extremely proud to be a longtime partner of Property Advisory Group and Cathedral Development Group on Greenwood Terrace and other developments like this in our state to provide good homes for seniors. We are also very thankful to U.S. Senator Jack Reed for his leadership on the federal level. As the ranking member of THUD, Senator Reed is in a unique position to advocate for the housing needs of Rhode Islanders, and we are grateful for his efforts.”
”Greenwood Terrace is the latest example of the collaborative relationship between RIHousing and Property Advisory Group/Cathedral Development Group,” said John B. Bentz, President of Property Advisory Group, the property manager. ”Our work will not only enhance these units for the current residents, but will also ensure they are preserved for years to come.”
About RI Housing
Together with its partners, RIHousing works to ensure that all people who live and work in Rhode Island can afford a healthy, attractive home that meets their needs. RIHousing uses its resources to provide low-interest loans, grants, education and assistance to help Rhode Islanders find, rent, buy, build and keep a good home. Created by the General Assembly in 1973, RIHousing is a self-sustaining corporation and receives no state funding for operations.