Summer 2006 - Rhode Island Housing

Feature: Anne Nolan..................page 2
Neighborhood Newsmaker
Steve Adamo......................... page 3
Community inSight
A New Strategic Plan............... page 4
Community Resources.. .......... page 7
Community Outlook
A Letter from Richard Godfrey.... page 8
Community Matters
Inside:
SUMMER 2006
New Look and Feel
Promote Our Mission
Rhode Islanders do not have to look far to see that our look has changed.
Our new logo and newsletter are just two examples of a new brand identity
that reflects who we are and the diversity of the people we serve.
Consistent with our new strategic plan (see story on page 4), we have been
working with Im-aj Communications & Design, Inc. to create more targeted
designs and colors along with a comprehensive public awareness campaign. As
a result, our organization will better communicate to our diverse audiences
about the broad array of services we provide – from help for the homeless to
safe loan products for homebuyers and homeowners.
Even our new tagline – Working Together to Bring You Home – conveys our
dedication to Rhode Islanders and our commitment to collaboration.
“Our look may have changed, but our fundamental mission hasn’t – to help
all Rhode Islanders find safe, affordable homes,” says Executive Director
Richard Godfrey.
Chris Camacho, mortgage counselor,
Our goal is to reach out, consistently and clearly, to every Rhode Islander who
needs our help and the help of our partners. Every step we take makes us a
better partner and better at serving the housing needs of Rhode Island.
helps one of the dozens of people who
attended our Community Housing Fair
in Pawtucket with her loan application.
The housing fairs offer homebuyers and
homeowners advice about selecting
a loan that is safe and affordable.
We partner with organizations such
as Don’t Borrow Trouble RI, the Housing
Network, Consumer Credit Counseling
Service and HUD to promote financial
literacy.
Widening the Homeownership Net
Rhode Island Housing has increased the income and purchase price limits for our low-interest
loans. The result – more first-time homebuyers than ever before now qualify for our help.
Households of one or two persons now can earn $81,200, while households of three or more
can make as much as $93,300, and even more in some Rhode Island communities. The new
purchase price limits range from $374,000 for single-family homes and condos to $500,000
for four-family properties.
“Real estate prices have doubled in the past five years. We have to respond in a way that keeps
homeownership within reach of everyday Rhode Islanders,” says Cathleen Paniccia, our director
of Homeownership. “Together with our partners, we are giving thousands of people access to
safe loans with terms they can understand and guidance from people they can trust.”
Along the same lines, we have made other improvements to make it easier for Rhode Islanders
to buy homes. Borrowers now need just $500 in savings to qualify for our help. And they can
choose loan terms of up to 40 years, including our interest-only option.
2
An Extraordinary Advocate for the Homeless
Nolan attributes much of Crossroads’ success
to its ongoing partnership with Rhode Island
Housing. As a former corporate executive,
she understands how important it is that we
remain financially sound, which is one of the
ways our public awareness campaign will
help our partners.
“Many people are quick
to judge people who are
homeless by assuming they
can simply ‘pull themselves
up by their bootstraps’ and
change their situation. But
you can’t do that if you don’t
have the boots. We’re providing
the boots.”
“With everything Rhode Island Housing
does, there is a value added to the
organizations they support,” says Nolan.
“Anything they do to further their cause,
furthers our cause.”
– Anne Nolan
Homes Move
More Out of Reach
Rising home prices made
fewer communities affordable to
Rhode Island’s workforce in 2005.
The “HousingWorks RI 2006
Fact Book” reports:
n H
ouseholds
earning as much
as $75,000 can afford to buy the
median-priced single-family home
in just three of the state’s cities
and towns.
n H
ouseholds
earning $75,000
or less – 77.7 percent of total
Rhode Island households – can
only afford the median-priced
home in Central Falls, Pawtucket
and Providence. Last year, they
could live in Warwick, West
Warwick and Woonsocket, as well.
n F
our
towns dropped off the
“affordability index” for households
earning up to $100,000: Cumberland, Glocester, North Smithfield
and Richmond. Only 16 towns are
affordable for that income range.
n F
or
renters, the news was worse.
Households earning up to $35,000
could not afford the average rent
for a two-bedroom apartment
anywhere in Rhode Island.
Compassionate. Persistent. Visionary. These
are just a few of the words that come to
mind for those who know Anne Nolan.
As executive director of Crossroads Rhode
Island, the state’s largest provider of services
to the homeless, she is an indomitable force
in Rhode Island’s housing community.
“The best part of my job is that it doesn’t
feel like a job,” says Nolan. “Every day brings
new rewards.”
These rewards come from knowing her
agency houses 500 individuals every day,
and provides around-the-clock crisis
intervention 365 days a year. Moreover, it
ensures thousands of displaced people
receive quality health care, social services,
education and job training each year.
Crossroads is one of several agencies playing
a role in our effort to improve the state’s
Rental Subsidy Program, which we fund. We
are redesigning the program to offer
permanent housing combined with
supportive services instead of just shelter.
Tenants served by Crossroads and other
partners will be eligible for individualized
case-management services. For some
people, this might mean gaining access to
medical care or substance abuse treatment.
Others might receive legal assistance or
support to further their education.
Nolan explains that this comprehensive
model has proven to be successful –
both financially and in terms of helping
people make long-term, positive changes
in their lives.
High-Tech Upgrades on Tap
With our new brand identity comes an improved website that includes a new look and upgraded
functionality. Rihousing.com now provides our lenders, property managers, monitoring agents
and development partners with access to forms, program bulletins and other vital information.
Consumers will find a host of new information clustered by audience, such as “renters,”
“homebuyers” and “homeowners.” And for the first time, there is a section for our homeownership
borrowers with guidance on mortgage payments and escrows. Consumers who prefer their
information in Spanish will find improved content on buying a home and lead hazard abatement.
Our new website is just the first of a suite of technology upgrades. By the middle of next year,
we expect our network of participating lenders will be able to register loans online and
our single-family and multi-family borrowers will be able to make loan payments on the web.
Community Matters
SUMMER 2006
3
Neighborhood Newsmaker
Steve Adamo
Steve Adamo and his colleagues at Citizens Mortgage
Corporation have had a lot of success working with us to
help first-time homebuyers. A 10-time winner of our “Lender
of the Year” Award, Citizens closed nearly $30 million in
loans with us last year. Adamo joined Citizens Mortgage
Corporation in 1995 and was named President and CEO
in 2003. He oversees the combined mortgage activities
of Citizens Financial Group and its recently acquired
subsidiary, Charter One Financial. Adamo is a past
president of the Rhode Island Mortgage Bankers
Association and a graduate of Merrimack College.
He and his family live in East Greenwich.
Q. Why is affordable-housing lending
important?
A: Affordable-housing lending creates
homeownership, which in turn strengthens
communities by inspiring confidence,
change, economic development and
opportunity for our customers. Affordable
housing is vital to provide hardworking
individuals and families the opportunity to
purchase a home. As a leading Rhode Island
financial institution, it is important that
Citizens provide leadership in this area.
By thinking outside of the box, Citizens
has been successful in creating unique
mortgage products to promote the creation
of affordable homes through the Citizens
Housing Bank. In addition, our partnerships
with Rhode Island Housing allow for a
broad distribution network, which increases
the number of people who have access
to below-market-interest-rate products
for first-time homebuyers. Citizens Bank
is proud to be Rhode Island Housing’s
number one lending partner for the
tenth consecutive year.
Q. Why is Citizens so successful?
A: We are committed to creating sustainable
communities through community develop-
Work with
Latinos Honored
The Hispanic American Chamber
of Commerce (HACC) has honored
us as “Corporate Citizen of the Year.”
The award recognizes our success
serving the Hispanic community.
In 2005, we loaned Latino homebuyers
$16 million, we co-sponsored workshops for Latino small businesses and
Latinos made up 12 percent of our
workforce.
ment, job creation and, most importantly,
the creation of affordable housing.
Affordable homes are key to stabilizing
neighborhoods and, more importantly,
families. Healthy communities produce
healthy economies as well as a good
customer base for the bank.
Historically, Citizens has believed in the
neighborhoods of Rhode Island and is
proud to support local revitalization efforts
by providing a wide range of mortgage
products designed for first-time homebuyers
to achieve the pride of homeownership.
Citizens accomplishes this goal by creating
product lines to reach all consumers
whether it’s a first-time homebuyer
product, an affordable-housing product or
a fixed-rate or jumbo-mortgage product.
Affordable homes are good business and
Citizens is proud to lead the way.
Q. Where is the market heading?
A: The market is leaning towards a “softer
period,” meaning interest rates are increasing
and therefore housing inventory is increasing.
Homes are remaining on the market for
longer time periods and the value is
flattening. This is good news for those
looking to purchase in the coming months.
Executive Director Richard Godfrey
accepts the award from HACC’s
Juana Horton and Stella Guerra Brien.
4
Rhode Island has 13,000 fewer
affordable homes than it needs to
support its economy. These shortages
have spiked housing costs and
triggered record-breaking increases
in homelessness.
Community inSight
New Strategic Plan
Addresses Housing Needs
We recently completed the initial wave of a seismic strategic planning process. It jumpstarts
a multi-year effort to improve our products, services, marketing and delivery systems while
strengthening our financial position.
We developed these strategies over the past 15 months in close consultation with the
planning experts at New Commons, a firm that focuses on action-based research, strategy
and innovation. Over 40 staff members, representing each of our divisions, were directly
involved in the planning process. Many others supported our efforts.
Environmental Conditions
nRhode Island has 13,000 fewer affordable
homes than needed to support its economy.
These shortages have spiked housing costs
and triggered record-breaking increases in
homelessness.
nAggressive lending practices are adversely
impacting the state’s most vulnerable
populations.
nTwenty-nine towns are now beginning to
implement affordable-housing plans.
nSoaring land and construction costs stifle
low- cost home production.
nRhode Island’s regulatory regime is fractured
and complex.
nThe federal government has massively
reduced its role in affordable housing.
Guiding Principals
nWe exist to serve the housing needs of
Rhode Islanders.
nAs a self-sustaining agency, we must remain
financially viable.
Strategic Approach
Fine-tuning our traditional approaches
will not work. In our first two decades, we
focused primarily on financing Section 8
apartments and first-time homebuyers. The
original mandate of the General Assembly,
33 years ago, was far broader. Since 1993,
the housing needs of our citizens and our
responses to those needs have steadily
expanded and in the past five years our
state’s housing demands have exploded.
To match that crisis, we must develop new
tools, new products and new delivery
systems. We cannot do this alone. Our
partnerships must deepen, expand and be
refined. For this, we also need to develop
more effective communications systems.
Everything we do will be created with the
needs of Rhode Island’s diverse communities
in mind.
Our core planning group established
five primary fronts:
nTo offer an expanded line of safe, consumer-
friendly products and services for homebuyers
and homeowners.
nTo help cities and towns achieve their affordable
housing goals.
nTo build stronger partnerships with lenders,
developers, municipalities, state agencies
and non-profits to accelerate the production
of workforce housing.
nTo increase the effectiveness of our programs to
reduce homelessness.
nTo encourage sustainable growth patterns.
Community Matters
SUMMER 2006
for mor tgages and homeowner loans
At Rhode Island Housing, we not only help families
afford a home, we help them live there and keep it.
We offer safe mortgages, low rates and friendly,
knowledgeable service.
With the help of our participating lenders, families
earning up to $93,300 may now qualify for our
products and services. And with our purchase price
limits for single-family homes now at $374,000, more
and more Rhode Islanders are on their way to the home
of their dreams.
Call 401 457-1234
www.rihousing.com
or contact a participating lender
5
Un lugar confiable.
Para obtener préstamos hipotecarios y para propietarios de vivienda
En Rhode Island Housing no sólo ayudamos a las familias a que
compren una casa, las ayudamos a que vivan en ella y la conserven.
Ofrecemos préstamos hipotecarios confiables, bajas tasas de interés,
así como un servicio cordial brindado por personas entendidas en la
materia.
Con la ayuda de nuestros prestamistas participantes, las familias que
perciben ingresos de hasta $93,300 pueden ahora cumplir con los
requisitos para adquirir nuestros productos y recibir nuestros
servicios. Y en vista de que nuestros límites del precio de compra de
viviendas unifamiliares están fijados en $374,000 en la actualidad,
cada vez más y más habitantes de Rhode Island están en camino
hacia la casa de sus sueños.
Llame al 401 457-1122
www.rihousing.com
Para Español: 457-1122
o consulte con un prestamista participante
1032.RIH_ProJo_Pillow_1/4Pg_3.90”x7”
1032.RIH_SPAN_ProvEspañol.indd 5”x8”
Smaller, cross-functional teams built
business plans in support of the first
four fronts.
New Homeownership Products
nEnhance our core mortgage program with
longer terms and reduced or eliminated
mortgage insurance requirements.
nDevelop advanced technologies to make loan
closing, financing and delivery easier for our
lending partners.
nCreate and introduce a suite of fairly priced,
easy-to-understand lending products for people
with a broad range of credit scores. The menu
includes safer loans for prime and below-prime
markets and rescue loans for homeowners with
financial challenges.
nDeliver products through an expanded network
of lenders.
nBuild on the Don’t Borrow Trouble RI campaign
to implement statewide outreach and educate
consumers on making safer and better-informed
lending choices.
Help Cities and Towns
nImprove communications and strengthen
relationships with city and town officials.
nProvide technical assistance on plan
implementation.
nHelp craft ordinances that support the plans.
nExpand access to Land Bank and
pre-development funds.
nAssist with regulatory and permitting processes.
nFoster cooperation among state agencies to
streamline business practices and facilitate
timely approvals.
Improve Homelessness Assistance
nPartner with agencies and apartment owners to
design programs linking case management and
direct services with housing subsidies in order to
increase self-reliance.
nInvest an additional $1 million over the next year
to create a new program that binds housing
subsidies to new and existing service programs.
nEnhance funding for security deposits or
short-term rental assistance to prevent
homelessness and move people from
shelters into permanent homes.
nProtect existing RAP tenants and revitalize
existing RAP properties.
Operating Essentials
We cannot respond to Rhode Island’s 21st
century needs with 1970’s approaches.
To achieve our strategic vision requires
enhanced:
nBusiness systems
nAddress regulatory barriers.
nFinancing systems
nAddress concerns about the impact of
nTechnology systems
residential development.
Build Stronger Partnerships
nCreate participation loans with lenders
by expanding access to fixed-rate,
longer-term capital.
nProvide developers with increased access to
pre-development and capital subsidies as
well as construction loans that qualify the
homes under the Low and Moderate Income
Housing Act.
nCommunications
As we pursue our strategic initiatives we are
simultaneously addressing these operating
essentials. All of this will assure a stronger
agency providing better services to all
Rhode Islanders.
Supporting the
Homeownership Initiative
The most visible example of the
improvements we have made is a
public awareness campaign that
supports our Homeownership initiative.
The campaign features a series of public
service announcements on TV and
radio as well as print ads, billboards
and bus shelter posters. The campaign
has a consistent theme: together with
our participating lenders, we provide
a safe place for homebuyers and
homeowners alike. You can view all
the PSAs, ads and billboards by visiting
www.rihousing.com and clicking on
the “Check Out Our Ad Campaign” link.
6
Hardhats and
Historic Housing
A Top Choice
of Our Borrowers
Rob Scaralia and his team at RE/MAX 1st
Choice have helped a lot of people buy
their first home over the years. They are
a five-time winner of our Realtor of the
Quarter Award. It shouldn’t be surprising
that he is a fan of our financing.
Providence Mayor David Cicilline,
U.S. Senator Lincoln Chafee,
Providence state Representative
Grace Diaz, Bank of America’s
Bill Hatfield and The Washington
Trust Company’s John Warren
are among the VIPs celebrating
the rehabilitation of four historic
buildings. Greater Elmwood Neighborhood Services will convert the
properties into condos that target
first-time homebuyers earning as
little as $28,000. The initiative is
the first of three phases that will
transform several blocks of rundown
houses and vacant lots around
St. Joseph Hospital and Trinity
Gateway into 106 affordable
apartments and condos.
“I’ve been in the business 20 years. I don’t
think there has been a loan product more
important to first-time homebuyers. First,
there were below-market interest rates, then
an interest-only alternative and now 40-year
terms. Rhode Island Housing’s ability to
keep offering new products is a boon to our
business,” Scaralia says.
His office on Reservoir Avenue in Cranston
puts him in the heart of one of the state’s
most affordable municipalities. The city
long has been among the five most
popular communities for our borrowers.
Over the years, Realtors have used our
financing to help 5,200 families buy their
first home there.
“Cranston has a lot of inventory in the firsttime-homebuyer price range. No matter
what style of home you’re looking for, you
can find it here –
ranches, capes,
colonials, split
levels. And you
can choose
typical suburban
subdivisions
or historic
neighborhoods
like Oaklawn and Pawtuxet,” Scaralia says.
As a past president of the Greater Providence
Board of Realtors and a current member of
the Board of Directors of the Rhode Island
Association of Realtors, Scaralia is plugged
into the business. He attributes his success
to being willing to adapt when the
market changes.
“You have to be able to change with the
times. Ten years ago, the MLS book was a
crucial tool in our business. Now, because of
the internet, it’s obsolete. All the properties
we have for sale are online. Staying on top
means being innovative and open to new
ways of doing business. That is the best way
to serve our clients,” he says.
Honoring Housing Heroes
A Providence architect who uses housing to revitalize urban neighborhoods and two
philanthropic groups that are the driving force behind a campaign to create housing for
the state’s workforce are among eight individuals and organizations to win our 2005
Partners-in-Housing Awards.
Executive Director Richard Godfrey,
Rhode Island Foundation’ s Ron Gallo,
United Way’s Tony Maione and Governor
Don Carcieri at our Partners-in-Housing
Awards ceremony.
Architect Ed Wojcik, the Rhode Island Foundation, the United Way of Rhode Island, LISC-RI,
State Senator Juan Pichardo, State Representative Joe Almeida, State Representative
Tom Slater and the City of Providence were honored for outstanding contributions to
affordable housing.
“Their contributions should not only be measured by the number of Rhode Islanders they
have helped, but by the hope they bring to those in need,” says Governor Don Carcieri, who
presented the awards during a State House ceremony.
This was the seventeenth time we presented the Partners-in-Housing Awards. Nominations
were sought statewide.
Community Matters
SUMMER 2006
Community Resources
For more information on any of the following briefs, visit the
Community Resources link at www.rihousing.com.
The RI Chapter of the American Planning
Association seeks nominations for its 2006
awards, which recognize plans or projects
that promote good design, strengthen
neighborhoods or reduce sprawl. The
deadline is September 8. Last year’s winners
include the Barton Street Neighborhood
Revitalization Plan and the Campaign to End
Childhood Poverty for its efforts to promote
affordable housing in South Kingstown.
For more information, contact Bill Haase
at 348-2550 or [email protected].
Rhode Island Housing is seeking proposals
for 2007 Low Income Housing Tax Credits.
Proposals must have no fewer than 20
apartments serving households earning no
more than 60 percent of HUD’s median
family income. For more information,
contact us at [email protected] or
457-1129.
Nearly 70 percent of Americans own
their homes, a record high, but the rate of
homeownership for working families with
children is lower than in 1978, according
to The Center for Housing Policy.
Rhode Island Housing offers Targeted
Assistance Grants of up to $10,000 to help
public housing authorities, municipalities
and nonprofits address housing-related
issues in their neighborhoods. The grants
require a one-for-one match from other
sources. To find out more, contact
Annette Bourne at 457-1116 or
[email protected].
The National Low Income Housing
Coalition’s new report finds a nationwide
shortage of affordable homes forced more
than 4 million families to pay unaffordable
rents in 2003.
The Urban Institute showcases promising
community-wide homelessness prevention
activities in “Strategies for Preventing
Homelessness.” The recommendations
include offering supportive services coupled
with permanent housing and mediation in
housing courts.
The Joint Center for Housing Studies at
Harvard University finds that renters
increasingly belong to racial and ethnic
minorities.
7
Funding Fire Safety
Upgrades
Nearly 1,200 affordable apartments
and emergency shelter spaces are
on their way to being safer places
for their residents. We set aside $2
million to help non-profit housing
groups comply with the state’s new
fire safety code, which was upgraded
in the wake of The Station nightclub
tragedy.
“Most of us just did not know where
we would find the money to meet
the new requirements. Rhode Island
Housing sees a need, finds the funds
and helps those whose lives will
be changed,” says Kathy Bazinet,
Executive Director of East Bay
Community Development
Corporation in Bristol.
The upgrades cost an average of
$1,700 per dwelling unit. These
are grants or deferred-payment
loans that will be due only upon
transfer of ownership. The scope
of improvements includes adding
sprinkler systems, emergency
lighting and fire-rated components
such as emergency doors. For
more information, contact us at
[email protected] or
457-1129.
Community Outlook
by Richard Godfrey
I am excited to share with you the launch of Rhode Island Housing’s new look and public
information campaign, as we introduce our pledge to all Rhode Islanders: Working Together
to Bring You Home.
With the support of our partners, Rhode Island Housing is in the process of creating better
products and programs for homebuyers and homeowners, working with cities and towns
throughout the state to help them achieve their affordable housing goals, and stepping up
our efforts to address the homelessness epidemic. We are tackling the high cost of housing in
Rhode Island by introducing a holistic approach to development. With each of these efforts,
comes a need to inform and encourage all Rhode Islanders to work together toward solving
the state’s housing challenges.
As a self-sustaining statewide housing agency, it is our fiduciary responsibility to balance our
mix of programs and services to ensure financial stability and our capacity to serve the state’s
housing needs.
If you haven’t already noticed the visible signs of our pledge throughout the state – television
public service announcements, letters, billboards, bus posters and print ads – you won’t have far
to look in the days ahead. Our message is coming loud and clear.
For a healthy Rhode Island, partnering is essential – every person and every organization working
together. Working Together to Bring You Home.
Millie Wright, lending specialist, greets
Realtors as they arrive at a sneak
preview of our new public awareness
campaign. We unveiled our TV ads,
billboards and new logo and walked
Realtors through the improvements to
our programs for first-time homebuyers.
Presorted Standard
U.S. Postage
PAID
Permit #1859
44 Washington Street
Providence, RI 02903-1721
457-1234
learn more at
www.rihousing.com
Providence, RI