Capital Improvement Loan Program

2014 NCSHA ConferenceOctober 21, 2014

Anne Berman, Assistant Director Development

History• Started program in 2001– various projects over the years

• Dormant 2008-2012– Lack of resources; funded from corporate earnings

• Impetus for revival – Conscious decision not to use 9% credits– Deferred capital improvements of older

developments

Need• Preserving our scarce

inventory of affordable apartments is a priority

• Need upgrades to meet health and safety standards

Response to Need• Capital Improvement Loan

Program – Funds capital improvement work in

Rhode Island Housing financed developments

– Provides deferred loans to conduct code-related repairs and maintenance improvements to developments without feasible refinancing plan

Eligible Properties

• Category 1 – Critical repairs and improvements to address

immediate health and safety violations

• Category 2 – Deferred maintenance repairs for which

development lacks adequate replacement reserves

Process

• Application Requirements• Ranking Criteria– Funding Priority– Need– Readiness to Proceed– Cost Effectiveness– Creditworthiness

Summary• Addresses Year 15 tax credit developments and

rental housing not able to refinance or recapitalize• Preserves older tax credit developments not able to

refinance due to feasibility concerns• Avg. investment: $5,724 per affordable apartment • Cost effective investment vs. the average per unit

cost to preserve with a new tax credit investment

After

After

Thank You!

Contact Information:Anne Berman, Assistant Director DevelopmentPhone: 401-457-1269Email: Aberman@rhodeislandhousing.org