Could Affordable Housing Strengthen Families? CDT Thinks So
- Feb 11, 2015
New Haven, Ct.—The Rental Assistance Demonstration (RAD) program of the U.S. Department of Housing and Urban Development (HUD) will benefit from a $100 million commitment from the Community Development Trust (CDT). RAD was established to augment congressionally-allocated funds that alone are not sufficient to keep pace with the capital needs of public housing units nationwide.
Under the RAD program, CDT will provide permanent financing for a 55-unit multifamily community called Ribicoff Cottages in New Haven, Ct. CDT recently approved a long-term forward commitment for a permanent first mortgage of $4.4 million for a two-phase project at Ribicoff Cottages.
In the first phase, the 1950s-era existing structures will be razed. In the second phase, a new 106-unit community called Ribicoff Apartments will be constructed.
The new mixed-income community will serve a wide array of low- and middle- income families working in and around New Haven. It will feature one-, two-, three- and four-bedroom units of townhomes and small cottages.
“Our partner on this project, The New Haven Housing Authority, is a committed and trusted agency working hard to advance public housing in this region,” Joseph F. Reilly, president and CEO of CDT, told MHN. “With these new RAD resources, CDT can step in and help build on their success. In fact, many of the adjoining properties around Ribicoff Apartments were already transformed into long-term affordable housing. This project brings Ribicoff into the fold. Lastly, we believe an increased presence in the state of Connecticut will also open us up to new opportunities in the region.”
Affordable housing is something that is needed all the time, and is needed everywhere, Reilly added. “What made the timing right on this project is that it came about just after we spent the previous year getting familiar with the RAD program,” he said. “CDT was ready and the project was ready.”
A shared community garden and a community building serving as the site of the Supportive Housing Program will be among the amenities at Ribicoff Apartments.
As part of the program, a case manager will assist the Housing Authority of New Haven to deliver on-site educational services to residents. Those services are meant to strengthen the families residing at Ribicoff.
In the affordable housing industry, long-term stable capital translates into long- term stable housing, Reilly noted. This project will both preserve existing affordable units for current residents, and add new units that will serve those who are still in need.
“As a CDFI and private REIT with a social impact mission, CDT operates as a double bottom line, meaning that our investors expect us to also deliver a social benefit,” he reported. “That is why when we look for partners, we consistently work with those that share our mission of making a positive difference in residents’ lives and neighborhoods, for the long-term.”