Capital Improvement Loan Program 2014 NCSHA Conference October 21, 2014 Anne Berman, Assistant Director Development

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

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Thank You! Contact Information: Anne Berman, Assistant Director Development Phone: