Governor files budget amendment as lawmakers plan ARPA spending

(The Center Square) – Rhode Island lawmakers are continuing public hearings on a request from Gov. Daniel McKee to determine how to spend 10% of the state’s $1.13 billion allotment from the American Rescue Plan Act.

McKee is asking state lawmakers for a budget amendment, calling the immediate influx of funds a “down payment on larger investments.”

A $113 million allotment will benefit small businesses, tourism, housing and development, and children, family and social support initiatives, according to McKee.

Later this week, the House Finance Committee will hear from stakeholders interested in $29.5 million earmarked for affordable housing and housing stability. The Senate Finance Committee heard testimony from housing officials last week.

About 35% of Rhode Island residents spend more than 30% of their income on housing, according to a report from the Executive Office of Commerce’s Office of Housing and Community Development. The governor’s plan allocates $15 million to “close a funding gap” in existing programs that include the Low Income Housing Tax Credit. The funds would be made available in fiscal 2022 and the projects could begin as soon as six months after the program begins, according to information from the Senate Finance Committee.

McKee is also asking for $12 million to purchase new properties that would be developed as affordable housing units.

“This is so important right now because you know how the market is right now,” Carol Ventura, executive director of Rhode Island Housing, told the Senate Finance Committee. “The market is very tight. It’s very difficult for our developers to compete for property because they often have to assemble their financing before they can close on real estate. But this would allow us to be proactive, to build a pipeline of real estate that will be available for them once they assemble all of the production dollars that they need.”

The governor included broadband infrastructure in his housing proposal, citing statistics that show 45% of Rhode Island residents do not have access to internet speed that meets federal download and upload standards. Those most likely affected are small businesses and low-income residents who cannot afford internet and people who live in areas without access to the internet, according to Senate Finance Committee documents. He is requesting $500,000 to strategically map out areas of need.

Lawmakers are expected to tackle how they will spend ARPA funds when the next legislative session begins. They have opened an online portal on Rhode Island Legislature’s website that allows entities to submit requests for the funds.

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