825 R.I. Code R. 825-RICR-30-00-1.1

Current through October 25, 2024

Section 825-RICR-30-00-1.1 - PROGRAM PURPOSES

A. Objectives of Program.

1. The Corporation has determined that there exists a compelling need to provide decent, safe and sanitary housing and assisted living facilities for persons and families of low and moderate income residing in the State of Rhode Island and long term affordability to the residents of such housing, and to prevent the loss of this State's existing supply of Federally Insured or Assisted Housing units and the displacement of Low Income Persons and Families arising as a result of the conversion of such housing to market rate rental properties and condominiums.

2. The Rental Housing Production and Rehabilitation Program (the "Program") offers financial incentives to Housing Sponsors that preserve, develop, construct, produce or rehabilitate Housing Developments.

3. This Part sets forth the criteria established by the Corporation to determine which Housing Developments will be eligible for various financing alternatives under the Program, and shall be construed and applied so as to accomplish the objectives of providing mortgage financing Housing Developments in the State of Rhode Island.

B. Income Targeting.

1. Under the Program, the Corporation will provide financing only to:

a. Developments occupied or to be occupied at least 20% by persons and families whose income is 50% or less of the Area Median Gross Income (the "20 50 Test") or

b. Developments occupied or to be occupied at least 40% by persons and families whose income is 60% or less of the Area Median Gross Income (the "40 60 Test") as those terms are defined in the Tax Act at 26 U.S.C. § 142(d) or

c. in the case of Assisted Living Facilities, Development occupied or to be occupied 100% by persons and families whose income is 110% or less of the Area Median Gross Income (the " 100-110 Test").

2. To encourage the development and preservation of rental housing for Low Income Persons or Families, the Board of Commissioners has established a Targeted Loan Fund from which, subject to certain limitations, the Corporation will make below-market rate loans to Housing Sponsors.

825 R.I. Code R. 825-RICR-30-00-1.1