POAH closes on financing to renovate 130-unit affordable complex in Providence

PROVIDENCE – RIHousing and POAH announced the financial closing of the second stage tax credit recapitalization of Hillcrest Village, a 130-unit affordable senior community in Providence, Rhode Island.

Renovations will include interior upgrades (kitchen cabinets and countertops, appliances, bathroom vanities and tub surrounds, flooring, painting), fully adapting 7 units as ADA compliant, common area painting & flooring replacement, security cameras, various site repairs including improved drainage around the building, and rooftop and carport solar arrays. Free resident Wi-Fi access has already gone live at the property as part of the scope of the project.

A $31.9Mrenovation is underway with completion anticipated in March 2028. This closing represents 3 years of predevelopment, underwriting, design, energy modeling and structuring of financing, including the addition of a $7.8M 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, improved building envelope with added insulation, new siding, windows and roof replacement. 

“RIHousing is proud to support another POAH project in Rhode Island, sustaining the long-term affordability of Hillcrest Village,” said Carol Ventura, CEO & Executive Director of RIHousing. “POAH’s dedication to preserving the affordable housing in our state is crucial as existing buildings age. With these improvements, this development will continue to be a safe, accessible place for Rhode Islanders to call home.” 

“Addressing Rhode Island's housing shortage means both building new homes and preserving the affordable homes we already have,” said Rhode Island Secretary of Housing Deborah Goddard. “This investment in Hillcrest Village will ensure that 130 seniors can continue to live in safe, updated, energy-efficient homes they can afford for years to come. We're grateful to RIHousing, POAH, and all the partners whose collaboration is making this important preservation effort possible.”
The renovations are financed with $35M in tax-exempt bonds and Low-Income Housing Tax Credits (LIHTC) issued through RIHousing. Citizens Bank is providing a $25.8M construction loan sized for the project to achieve 50% completion. Boston Financial is investing $30.7M in federal 4% LIHTC and Solar Investment Tax Credits (ITCs) equity.

“We greatly appreciate the financial support of RIHousing, Citizens Bank, Boston Financial, Fannie Mae and all of our partners to make these comprehensive renovations a reality for our residents of Hillcrest Apartments," said Aaron Gornstein, President and CEO of POAH. "We also thank the Rhode Island Congressional delegation for their continued support of the Low Income Tax Credit Program that makes these projects possible.”