RIHousing Operational Costs Under Fire: A Press Conference/Masterclass by Rhode Island House Minority Leader Michael Chippendale
Republican Minority Leader Michael Chippendale, in a press briefing Wednesday afternoon, led Reporters through a stark demonstration of the underlying costs of housing development in rehabilitation/new construction projects “managed” by RIHousing … the long troubled Rhode Island agency tasked with addressing the housing crisis in Rhode Island … a State pummeled by explosive increases in housing costs … rental & purchased properties … in the wake of the Covid Epidemic.
In a refrain all too common in the Ocean State, direct comparisons of explosive cost differences between other New England States, on “Fill in the Blank” Government functions abounds … in this case fundamental, yet grotesque inequalities in the costs associated with housing construction.
The video above, coupled with the data provided below documents the issue in stark terms. – Pat Ford
RIHousing Data Brief – Created by the Rhode Island House Minority Caucus – Leader Michael Chippendale, Chairman
How does RIHousing compare to regional peer agencies when looking at the number of employees and combined administrative and personnel expenditures?
RIHousing (RI) has approximately 237 employees — the second highest regionally behind MassHousing (MA), which has approximately 363 employees. While this is expected as MassHousing serves a much larger population, when these figures are scaled per 10k residents RIHousing pulls ahead. RIHousing has 2.13 employees per 10k residents compared to MassHousing’s 0.51. This is true also when looking at Maine Housing (ME), the Connecticut Housing Finance Authority (CT), New Hampshire Housing (NH), and the Vermont Housing Finance Agency (VT). The largest disparity identified is that of New Hampshire Housing and RIHousing with a difference of nearly 2 employees per 10k residents.
There is a similar trend when looking at how these agencies support these positions. While RIHousing has the second highest approximate combined administrative and personnel costs in the region at $46.4 million, when scaled per 10k residents RIHousing’s total again exceeds all other peer agencies included in this comparison. RIHousing’s approximate costs per 10k residents – at $417.41k – are nearly $60k more than the Vermont Housing Finance Agency which has the second highest approximate costs in the region. When comparing RIHousing to MassHousing the disparity between costs is over $300k.
Recent development proposals have included unusually high per unit costs. Is there a relationship between this fact and RIHousing’s considerable operating budget?
While it is difficult to definitively say that RIHousing is intentionally disregarding project price to bolster interest income, it is not outside the realm of possibilities. Interest income reflects the highest source of annual gross revenue for the Housing Finance Agency (HFA) – this per RIHousing’s FY2025 budget, FY2026 proposed budget, and revenue forecasts. RIHousing is limited in its options to bolster interest income, as increasing rates would make the HFA less competitive in the current market. Instead, approval of higher cost developments would allow for a larger percentage share of an inflated principal which could help to offset some of RIHousing’s annual operating expenses. RIHousing’s FY2026 proposed budget assumes an operating expenditure of $52.3 million –an amount that reflects nearly 65% of their total assumed gross revenue for FY2026.
To support this theory, look at two recent project proposals – Hillcrest Village Apartments and Hillside Village Apartments – costs per unit (for a rehabilitation project) are $551,572 and $638,953 respectively.[1] This far exceeds amounts typically reported for these types of projects with RIHousing’s own internal cost standard for the rehabilitation of units being approx. $266,000 per unit.[2][3]
How does RIHousing generate revenue?
Looking at RIHousing’s FY2026 Budget, the primary source of revenue for the agency is net interest income. For FY2026, RIHousing’s budget includes an assumed $41.7 million in interest income.
RI Housing also generates revenue through fees. The fees are not specified, but it can be assumed that, as is the case with other HFAs, fees are collected through items such as administration of various housing programs, developer application fees, and fee-in-lieu payments (RIGL 45-24-46.1) etc.[4] FY2026 gross fee income is an assumed $33.6 million.
RIHousing’s third primary revenue source is through the sale of loans. Their FY2026 budget includes an assumed $5.9 million in gross revenue. Broadly speaking, loan sales provide HFAs with immediate access to capital – typically more than what would be generated annually in interest on a pre-existing loan – which they can then incorporate into a new loan offering or some other provided housing service.[5]
What is the ratio of total operating expenditures to total program expenditures within RIHousing’s Proposed FY2026 Budget?
When looking at total operating expenses over total program spending – $52.3 and $7.2 million respectively – the ratio of “operations to output” is roughly (making considerations for rounding) 7:1.
Given this, it can be inferred that part of the rationale for the willingness to consider projects with such large development costs is to support the sheer administrative bloat in RIHousing’s budget. This calls into question whether projects are being approved for financing because they are the best fit to meet the needs of the state and address the ongoing housing crisis or, that they are the best fit to support the operations of RIHousing.
[1] RIHousing – Hillcrest Village Request for Approval
[2] RIHousing – Hillcrest Village Request for Approval
[3] RIHousing – Program Bulletin – Fees, Cost Limits, and Guidelines
What has the state subsidy of housing production produced since 2006?
The attached spreadsheet contains information on ARPA State Fiscal Recovery Fund (SFRF) obligations to RIHousing; current development projects utilizing the funds; totals for recent housing general obligation bonds; and the amount of state funded homes per municipality – as reported by HousingWorksRI at Roger Williams University.
Note, when it comes to the housing general obligation bonds approved between 2006 and 2021, these resources were used primarily to fund the Building Homes RI program (BHRI) (formerly of the Housing Resource Commission, now a function of the state Executive Office of Housing) and the Acquisition and Revitalization Program (ARP) administered by RIHousing.[1] As it pertains to the most recent bond approved, it will be some time before these funds are available for use in full, as the state is still in the process of selling these bonds off. Because there is no formal institutional relationship between the state’s current housing bodies – Executive Office of Housing and RIHousing – there is some confusion as to how control over these new funds will be apportioned.[2] This highlights one of the primary concerns the Caucus has addressed in the past as it relates to the duplication of effort among the state’s housing entities and the need for increased oversight and accountability.
Per the included spreadsheet – as of 8/28/2025:
- With state housing bonds, 4,007 affordable units (this figure includes new construction and rehabilitated units) have been produced since approval of the 2006 housing bond.
- Only four municipalities currently meet the 10% low- and moderate- income housing (LMIH) standard. For all municipalities to reach 10%, the state would need an additional 13,697 units. Note that current need likely far outpaces this figure.
- Approximately $206 million in SFRF obligated between FY2021-2025 were given to RIHousing to administer.
- With these funds, RIHousing committed $195.9 million of the total obligation and expended $141.5 million.
- Committed and expended resources have been used to support a total of 147 projects.
- These projects include but are not limited to, site acquisition, public housing authority facility improvements, community revitalization, and development of affordable housing.
[1] RIPEC – Housing Policy in Rhode Island (p.8)
[2] ‘Do The Math’: Historic $120 Million Bond Not Enough to Solve Rhode Island’s Housing Crisis
- Looking specifically at affordable housing development projects –
- 11 have been completed producing 396 total units of which 356 are considered affordable.
- 17 are currently under construction. These projects will produce 1088 total units of which 943 are considered affordable.
- 4 projects have been approved for development but are not yet under construction. These projects will produce 292 units of which 69 are considered affordable.
Has RIHousing’s Board represented the organization’s stated goals and what is the current makeup of the Board?
In a perfect world, RIHousing’s board would serve as a form of check and balance; evaluating proposals in the absence of third-party oversight and determining whether such projects should be approved. Per sources familiar with the Caucus’s concerns, it appears that the board is largely complicit in, or at the very least, apathetic to the authorization of projects that may not be in the best interests of the state and would not hold up to external scrutiny.
Outside of ex-officio positions, appointments serve four-year terms and are selected by the Governor for confirmation by the Senate. There are currently three positions up for renewal and one open seat. Board member Kevin Orth’s position has been expired for over four years.[1][2]
| Board Member | Engagement | Term Expiration | Membership |
| Rebecca Webber | DOA Designee | DOA Designee | Ex-Officio |
| Deborah Goddard, MSW | Secretary of Housing | Secretary of Housing | Ex-Officio |
| James Diossa | General Treasurer | General Treasurer | Ex-Officio |
| Maria F. Barry, CPA | 3/3/2021 | 7/1/2025 | Public Member |
| Stephen McAllister | 4/16/2021 | 7/1/2025 | Public Member |
| Kevin Orth | 5/22/2017 | 7/1/2021 | Public Member |
| Open Seat | – | – | Public Member |
[1] RI Secretary of State – State Boards and Commissions – Mortgage and Finance Corporation
What role should the state’s watchdogs play in this matter and how can we improve transparency and accountability?
Article 3 of the FY2026 budget as enacted renames the Office of Internal Audit to the Office of Internal Audit and Program Integrity, expanding the duties and authority of the Chief of the Office to include granting administrative subpoena powers, with prior approval from the Director of the Department of Administration.[1] Through this change, the Office of Internal Audit and Program Integrity could subpoena RIHousing to obtain comprehensive financial reporting and other relevant documentation or conduct an audit examining the HFA’s internal controls.
Another possible avenue, whether it be through statute or a promulgation of rules, would be to require RIHousing to receive 3rd party or state oversight on projects that are funded in part, or entirely with resources directed from the state.
For example, take a look at a South Carolina (SC) statute, it mandates that the South Carolina Housing Finance and Development Authority cannot issue a tax credit eligibility statement (specific to SC Housing Tax Credit) for a project until a report is provided. This report must detail how the state tax credit will “benefit the tenants… including, but not limited to, reduced rent.” The SC based Cumming Group was one of the firms contracted to conduct these reports and reports issued were in part, directly responsible for the approval or rejection of proposed projects.[2]
As of 2024, the requirement for these third-party reports has been discontinued. While the law itself has not been changed, SC Housing’s 2024 Qualified Allocation Plan (QAP) now uses its own internal review process to satisfy the legal mandate.
It is important to note that the state does not make annual appropriations to support RIHousing operations. RIHousing is not a state agency; it supports itself through bond fund earnings, federal grant administration, fees and interest income.[3] There are instances in which the state will provide money to RIHousing to administer and execute a state function, but this does not occur regularly. To provide an example, the state obligated $332.2 million in State Fiscal Recovery Funds (SFRF) from FY2021 through FY2025 for various housing projects and initiatives.[4]
[1] HFAS FY2026 Budget as Enacted – Department of Administration (p.58)
[2] Cumming Group Reports – SC Low Income Housing Tax Credit Projects
[3] RIHousing – Investors Information Page
[4] RIPEC – Housing Policy in Rhode Island (p.32)
RIHousing was given responsibility for the administration of approximately $206 million of these funds; a majority of which was for the production and preservation of affordable units.[1] There should be third party oversight of these monies for accountability and transparency.
Rhode Island state taxpayers do have a vested interest in the responsible stewardship of these funds [SFRF]. The funds were provided to the state conditionally and given to RIHousing with an understanding that these funds would be used – with Rhode Islander’s best interests in mind – to address the ongoing housing crisis.
These examples should serve as a practical example as to why Rhode Island would benefit from having an independent Office of the Inspector General.
[1] HFAS FY2026 Budget as Enacted – State Fiscal Recovery Funds (pp.12-13)
House Republicans 9.17.2025 - Housing Presentation
