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Study: R.I. in 'severe crisis' over affordable housing

06:18 PM EDT on Thursday, August 19, 2004

The Associated Press

PROVIDENCE -- The shortage of affordable housing in Rhode Island will worsen in the next few years if the state sticks to current housing goals, according to a study released today.

This year, the General Assembly required each community to develop plans ensuring that 10 percent of all housing be affordable to low and moderate wage earners.

The state is now about 8,700 units shy of the goal, said a study commissioned by the nonprofit Woonsocket Neighborhood Development Corp. By 2010, the report's authors said, at least 18,000 more affordable homes and apartments will be needed.

"Rhode Island is in a severe crisis ... (and) we should expect it to worsen considerably," said Eric Hangen, president of I-squared Community Development Consulting Inc., which produced the report.

Hangen said 97,000 Rhode Island households already devote more than half of their incomes to housing. No more than 30 percent of income is typically recommended. The state is expected to add up to 40,000 households this decade, which will require new construction and renovations of existing units.

An estimated 155,000 households don't earn enough to afford average rents on two-bedroom apartments, according to the study. Hangen projects that number to increase to more than 200,000 households by 2010.

Those affected increasingly include workers who can't afford rent or a mortgage, he said.

"People assume those burdened (by limited affordable housing) are welfare recipients and the unemployed," Hangen said. "That's absolutely not the case."

Gene Giguere, a pastor at Harvest Community Church in Woonsocket, said more than half those staying in church-run shelters during the winter are employed. Giguere said one man who used the shelter with his two young daughters had been living in his car.

"He could afford a car but not an apartment," Giguere said.

The $9,500 study was commissioned as a challenge to the state and local communities to create more affordable housing, said Joe Garlick, executive director of the Woonsocket-based nonprofit developer.

"Ten percent is the absolute minimum needed," Garlick said.

Governor Carcieri and state lawmakers have approved $10 million over the last two fiscal years to build more affordable housing.

Carcieri spokesman Jeff Neal said the governor is committed to continued state spending to address the shortage. But Neal declined to comment on the report's call for a specific number of affordable units.

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