Colony House Apartments is a 101-unit development that
serves elderly and disabled residents. Under the financing agreement, RIHousing
required a long-term use restriction to ensure that the development remains
affordable for the next 30
years.
“Our initial financing agreement with Citibank was the first
of its kind in Rhode Island and served as Citibank’s entrée into this market.
We are thrilled to bring outside investment to Rhode Island to finance the
preservation of much-needed housing,” said Barbara Fields, Executive Director
of RIHousing.
Through this financing structure, Citibank will make a
direct loan to RIHousing, and RIHousing will issue a tax-exempt note to
Citibank. RIHousing will then advance the loan proceeds to the borrower (Standard
Property Company) under its tax-exempt bonding authority.
“This agreement is a testament to RIHousing’s success in
broadening our partnerships and thinking creatively to attract private
investment to our state,” added Fields.
