This week Chas Adams and I spoke with Nellie Gorbea, Executive Director of
Housingworks RI. Recognized by the Providence Business News 2009 Business Women program as a "Woman to Watch", Nellie oversees the HousingworksRI's coalition of over 140 organizations working to improve housing rental and ownership opportunities in Rhode Island, especially for the state's workforce. HousingWorks RI recently released its annual Fact Book on affordable housing in Rhode Island.
The 2011 Fact Book features the incredible success of the 2006 affordable housing bond known as Building Homes Rhode Island (BHRI). The $50 million housing bond created 1,255 affordable homes in 30 communities throughout the state. The Bond was an incredible boost to the state's overall economy, including these findings from the economic impact study:
- The $50 million generating about $800 million in total economic activity.
- More than half of all the new construction in Rhode Island between 2007- 2010 was sparked by the bond
- At a time of record-high unemployment, BHRI supported 6,100 jobs in Rhode Island.
While declining values have made housing more affordable, there is still a great need for long term affordable solutions, there are only nine communities in the state where the average wage earner could afford to purchase a median priced home, and foreclosures are still a big problem.
This week's Real Estate Insight: Despite the overwhelming success of the last bond initiative, there is no money for Affordable housing in the 2012 budget. Massachusetts has about $285 million in its current budget for housing programs, and Connecticut is investing over $130 million in housing this fiscal year. The return on the investment has been proven to not only provide affordable housing to the neediest of individuals, but has also been a great boost to the overall economy in general, particularly the hard hit construction industry.
