Nonprofit affordable housing developer closes on financing to renovate 42-unit affordable complex in Providence

Nonprofit affordable housing developer closes on financing to renovate 42-unit affordable complex in Providence

RIHousing will provide funding for the second stage recapitalization

PROVIDENCE – RIHousing and nonprofit Preservation of Affordable Housing have announced the financial closing of the second stage tax credit recapitalization of Hillside Village, a 42-unit affordable family community in Providence, Rhode Island.

Renovations will include interior upgrades (kitchen cabinets and countertops, appliances, bathroom vanities and tub surrounds, flooring, painting), fully adapting 3 units as ADA compliant, common area painting & flooring replacement, security cameras and various site repairs including improved drainage around all five buildings. Free resident Wi-Fi access has already gone live at the property as part of the scope of the project.

A $9.9M renovation is underway with completion anticipated in April 2027. This closing represents 2 years of predevelopment, underwriting, design, energy modeling and structuring of financing, including the addition of a $2.5M HUD Green Resilient Retrofit Program (GRRP) Leading Edge award in 2024 which will fund removal of gas-powered equipment, electrification of buildings, installation of a Variable Refrigerant Flow (VRF) system for heating, cooling and improved ventilation, rooftop solar arrays, improved building envelope with added insulation, new siding, windows and roof replacement. 

“POAH is conducting critical work in Rhode Island preserving the affordable housing that already exists in our communities, ensuring these homes are up to date and remain affordable for residents,” said Carol Ventura, CEO & Executive Director of RIHousing. “We’re happy to be supporting another POAH project and look forward to continuing to work with the organization on future development renovations and modernizations.”

The renovations are financed with $13.2M in tax-exempt bonds and Low-Income Housing Tax Credits (LIHTC) issued through RIHousing. Citizens Bank is providing an $8.8M construction loan sized for the project to achieve 50% completion. Boston Financial is investing $11.65M in federal 4% LIHTC and Solar Investment Tax Credits (ITCs) equity.

"We greatly appreciate the support of RIHousing and all of our partners to make these comprehensive renovations a reality for our residents of Hillside Apartments," said Aaron Gornstein, President and CEO of POAH. "We also thank Senator Reed and the entire Rhode Island delegation for their support of HUD's Green and Resilient Retrofit Program (GRRP), which is funding significant energy efficiency improvements so our residents can live in greater comfort and reduce their energy costs."