Tools to Support Safe and Affordable Housing Throughout the City of Providence
PROVIDENCE, RI – Mayor Jorge Elorza today announced funding opportunities for residents looking for both down payment assistance for home purchases and loans for home repairs.
“The City of Providence is making significant investments in its homeowners and homebuyers,” said Elorza. “We are building stronger communities by offering these loans and assistance programs and would like for eligible residents to take advantage of them.”
Federal Community Development Block Grant (CDBG) and HOME Investment Partnerships funding through the U.S. Department of Housing and Urban Development (HUD) have become integral tools in the redevelopment of communities in Providence and have emerged as a supplemental tool to the EveryHome program, aimed at eliminating abandoned properties in Providence.
“For many, the American Dream has been home ownership,” said Acting City Council President Sabina Matos. A significant barrier to home ownership is often having enough money for the down payment or being able to cover closing costs. With this funding from the CDBG and HUD, qualified residents will be able to gain access to funds that will help them achieve their goal of home security.”
Each year, the city receives funding from the federal government to help revitalize local communities by providing safe housing, suitable living environments and expanded economic opportunities, principally for low and moderate-income residents. This funding allows the City to provide grants for Down Payment and Closing Cost Assistance, administered by the Housing Network of Rhode Island, and Home Repair programs through the City’s Community Development Division.
“The Housing Network of Rhode Island is pleased to be partnering with the City of Providence again to offer this program,” said Melina Lodge, Executive Director of the Housing Network of Rhode Island. “Access to Down Payment and Closing Cost Assistance is an important tool for putting homeownership opportunities within reach of low-income residents and we commend the mayor’s leadership in making this investment.”
Down Payment and Closing Cost Assistance is a deferred-payment loan to cover down-payment or closing costs. Assistance is available to homebuyers that meet HUD income limits who purchase a 1-3 family home or condominium. Loans are affordability-restricted and properties must be the owners’ primary residences. The program is also restricted to those who can commit to staying in the property for at least five years.
The Down Payment and Closing Cost Assistance program is scheduled to launch on January 15, 2018. Funding is extremely limited and will be awarded on a first come, first serve basis to eligible households. Applications are available online through the Housing Network of Rhode Island or in person by visiting the Housing Action Coalition of RI at 1070 Main Street, Pawtucket, RI.
The CDBG Home Repair Loan Program, made possible with the support of the Providence City Council, helps qualified homeowners perform a variety of home improvement projects, including emergency roof replacements, heating system replacements (in some cases, clients living without heat) and correction of code violations.
All funding assistance is in the form of a 0% interest, deferred payment loan for up to $25,000. Payment becomes due upon sale, change of primary residence, refinancing with cash out, debt consolidation or transfer of the property title.
Applications for the Home Repair Program are processed on a first-come, first-serve basis unless an emergency situation exists that warrants prioritization (ex. no heat, no running water). Applications are available online through the City’s Division of Community Development or in person by visiting the Joseph A. Doorley, Jr. Municipal Building at 444 Westminster Street, Providence, RI.