 |
|
2/3/2025
|
Sponsors, Speaker highlight RI Housing program to help homeowners finance ADUs
|
 STATE HOUSE – On the heels of last year’s enactment of their legislation enabling more homeowners to build accessory dwelling units, Rep. June S. Speakman and Sen. Victoria Gu, joined by House Speaker K. Joseph Shekarchi, today helped announce a new financing program RIHousing is offering to help Rhode Island homeowners build them.
RIHousing’s FHA 203(k) Loan program assists homebuyers or current homeowners who wish to renovate and/or expand their properties with an accessory dwelling unit (ADU), a smaller, independent residential unit located on the same lot as a primary single- or multi-family home. The addition of an ADU can mean multigenerational living on one property or a space to rent to generate additional income.
“I have spoken to homeowners in my area who want to renovate their garage or a space within their home into an ADU but don't have the funds readily available, so I’m glad that RIHousing is supporting homeowners through the 203(k) financing program. ADUs offer the ‘missing middle:’ housing that is smaller, more affordable and smartly repurposes our existing buildings and garages. Whether homeowners use their ADUs to receive additional income through a long-term rental, or house a loved one, friend or onsite caregiver, it’s a win-win," said Sen. Victoria Gu (D-Dist. 38, Charlestown, Westerly, South Kingstown).
Said Rep. June Speakman (D-Dist. 68, Bristol, Warren). “As the House sponsor of the ADU legislation, I have received many inquiries from constituents looking for help financing the construction of such accessory units. I am delighted that this program provides that needed assistance. ADUs are a great way to gently expand housing availability in our communities and an essential tool for addressing the housing needs of Rhode Islanders.”
Senator Gu and Representative Speakman were the sponsors of legislation (2024-S 2998A, 2024-H 7062A) enacted by the General Assembly in June that now provides homeowners statewide the right to develop a single ADU on an owner-occupied property to accommodate a disabled family member, or within the existing footprint of their structures or on any lot larger than 20,000 square feet, provided that the ADU’s design satisfies building code, size limits and infrastructure requirements.
The measure is meant to encourage the development of rental units that are likely to be more affordable than many other apartments, and also to provide opportunities for homeowners with extra space to generate income that helps them maintain ownership of that property.
ADUs are an additional, flexible solution to Rhode Island’s current housing shortage. They can be vital for a family, letting older members – like parents and grandparents – live beside younger members while still maintaining independence. ADUs also let younger members, like recent college graduates, be near family while having their own space. Or an ADU can become a rental opportunity for the property owner. In addition to expanding livable space on the property, ADUs can increase a home’s value. AARP has more information about the ABCs of ADUs: https://states.aarp.org/rhode-island/the-abcs-of-adus.
“Congratulations to RIHousing for developing this creative program to help homeowners and increase housing stock,” said Speaker Shekarchi, who was a strong proponent of the legislation. “ADUs are a great way to increase density without changing the character of the surrounding neighborhood. I am thrilled that RIHousing is making it possible for more Rhode Islanders to benefit from the legislation we passed in the General Assembly.”
Said Gov. Dan McKee, “Tackling the housing crisis takes a whole-of-government approach and bold strategies. The loan program supports increased access to housing, which opens the door to better health outcomes and a stronger economy for Rhode Island. I'm proud to have worked with Speaker Shekarchi, Senate President Ruggerio, and the legislature on this important legislation.”
In addition to individuals or families purchasing a new home, RIHousing is now offering the FHA 203(k) as a refinance option for current homeowners who wish to build or renovate an ADU. Homebuyers or homeowners utilizing a FHA 203(k) Loan will receive a loan for both the purchase or refinance of the home and the proposed project.
Rhode Island homeowners using the RIHousing 203(k) Loan can build an attached or in-home unit on their property if it meets certain criteria; each town may have its own specific regulations, so it’s best to consult a qualified contractor who is familiar with the local requirements.
Projects must be completed within 12 months of the purchase or refinance date. The homebuyer or homeowner must complete RIHousing’s FHA 203(k) homebuyer education class prior to closing, which is offered online for $15. The homebuyer or current homeowner must also select an FHA-approved RI 203(k) consultant and a RI licensed and insured contractor.
Interested homebuyers or homeowners can visit https://www.rihousing.com/adu/ or reach out to the RIHousing Loan Center or a RIHousing Participating Lender for more information.
“RIHousing is committed to expanding housing options across our state,” said Carol Ventura, CEO & Executive Director of RIHousing. “As we continue to deal with a tight housing market, creative ideas are key to increasing housing options that more Rhode Islanders can afford. Giving homeowners the option to build or renovate an ADU can open doors for homeowners and renters.”
Said Acting Secretary of Housing Deborah Goddard “Rhode Island’s housing needs are evolving, and we must be innovative in our approach to meet those needs. By supporting the development of Accessory Dwelling Units through programs like the FHA 203(k) loan program, we are empowering homeowners to enhance their properties while contributing to a more affordable and diverse housing market – strengthening multigenerational living and giving homeowners the opportunity to create new rental spaces that can support families and bolster the local economy.”
For more information, contact:
Larry Berman, Communications Director for the Office of the Speaker
State House Room 322
Providence, RI 02903
(401) 222-2466
|
|