Early-Stage Capital Program: Lines of Credit for Nonprofit Housing Developers
This program accepts applications on a rolling basis.
Program Description
As part of its commitment to supporting the production and preservation of affordable housing, the Rhode Island Foundation is providing flexible lines of credit to established nonprofit developers and Community Development Corporations (CDCs) across Rhode Island. Funded through a $5 million allocation from the 2024 Rhode Island Housing Bond and matched 2:1 by the Rhode Island Foundation, this Early Stage Capital Program makes available $15 million in mission-aligned capital to address a critical financing gap — delivering flexible acquisition funding at the earliest and most uncertain stages of housing development, when access to capital can determine whether a project moves forward at all.
By equipping nonprofit developers with the resources needed to act quickly on acquisition opportunities, the program helps ensure that viable projects are advanced quickly, and sites for affordable housing are not lost to market-rate competition or left undeveloped. Lines of credit are available at below-market interest rates, giving experienced developers the flexibility to deploy capital as needed to secure properties and advance projects. As capital from these lines of credit are repaid, the funds are recycled back in the program- maximizing the long-term impact of the capital and enabling the Foundation to support as many projects as possible over time to help expand and preserve affordable housing options for Rhode Island residents.
The program prioritizes established nonprofit developers and community development corporations engaged in the production and preservation of affordable housing in Rhode Island.
Nonprofit, 501(c)(3) organizations located or delivering services in the state of Rhode Island
Be a nonprofit developer and/or Community Development Corporation (CDC)
Demonstrate a strong track record of successfully completing affordable housing developments in the state
Possess the organizational capacity and financial strength to manage and repay the line of credit
Have an active pipeline of acquisition opportunities that will meaningfully utilize the line of credit capital
Individuals, for-profit corporations, and organizations without a track record of operating in Rhode Island will not be considered
The Early Stage Capital Program seeks to support projects that:
Expand the supply of affordable housing through the acquisition of sites or properties for new construction or substantial rehabilitation
Preserve existing affordable housing at risk of conversion to market-rate or deterioration due to deferred maintenance
Support a diverse mix of projects across the state, including homeownership opportunities, affordable rental developments, and community appropriate mixed-income developments
Serve a broad range of Rhode Island residents, including low-income, workforce, and deeply affordable housing needs
Demonstrate a clear and credible path to project completion, including a viable financing plan and identified development team
Leverage the line of credit to unlock additional public and private investment in affordable housing
Advance equitable housing outcomes for underserved communities and populations across Rhode Island
Lines of credit are anticipated to range from $500,000 to $2,000,000, will carry a below-market rate of less than 3%, and are anticipated to have an initial 5-year term with the potential to renew.
Interested and eligible organizations are encouraged to contact Ricky Bogert, Director of Impact Investing & Housing, at rbogert@rifoundation.org or 401-427-4011, to discuss their proposed use of a line of credit prior to submitting a formal application. This initial conversation will help determine whether the project aligns with the program's funding priorities and ensure that applicants receive guidance on the application process. We encourage potential borrowers to reach out early, as funding is limited, and lines of credit will be awarded on a rolling basis.
If an application is solicited, it would include the following:
Organizational Review: An assessment of the organization’s mission, history, and track record in the state with a specific focus on developing affordable housing; current pipeline and anticipated use of funds; organizational capacity including leadership, staffing, and governance
Financial Review: A detailed evaluation of the organization's financial health and operating model, including audited financials, liquidity, existing debt obligations, projections, and the ability to repay the line of credit
Investment Opportunity Review: Detailed description of the specific anticipated uses of the acquisition capital/line of credit; pipeline review, project/opportunity highlighting the purpose, goals, objectives, and funding model; project budgets and position of our funds; collateral/security; sources and uses with repayment projection; project start date and completion date; focus on why funds from this program are needed for the project, why the investment is needed to be successful, if there are other potential sources of funding for this specific need, etc.
Social Impact Review: An assessment of the project's potential to produce or preserve affordable housing units and advance equitable outcomes for Rhode Island residents
Risk Analysis: An evaluation of the key risks associated with the borrower and the proposed investment, including organizational, financial, market, execution risks and corresponding mitigation strategies
Borrowers will also agree to provide annual financial and social impact reporting during the life of the loan
Application deadline
This program accepts applications on a rolling basis and will be open until available funds are exhausted.
If you are interested in learning more and want to submit an application, please contact Ricky Bogert, Director of Impact Investing & Housing, at rbogert@rifoundation.org or 401-427-4011.
