This story of statewide business interest previously appeared in a local news section.

TIVERTON — Church Community Housing Corporation has obtained the critical — and scarce — housing tax credits it needs to move ahead on a proposed artists colony at Sandywoods Farm, off Bulgarmarsh Road near Bliss Four Corners.

Steve Ostiguy, executive director of the nonprofit community development corporation, said yesterday that the housing tax credits, combined with additional financing from Rhode Island Housing, “make this a reality.”

Church Community Housing Corporation, based in Newport, plans to break ground later this year on the 175-acre site, which is to include 50 affordable rental cottages and 24 single-family houses that will be for sale. All the rental properties will be powered by solar and wind energy.

The enclave will also feature art studio space for residents, community gardens and a commercial village center where artists will be able to sell their wares. In addition, 150 acres of land will be preserved for a working farm and open space.

Rhode Island Housing has allocated $785,000 to Sandywoods Farm in federal low-income housing tax credits, which will bring in about $7 million in construction financing when they are sold to investors seeking to reduce their taxable income, according to Carol Ventura, the state agency’s director of development.

She said competition is stiff for low-income housing tax credits in Rhode Island, which is allocated only $2.1 million worth by the federal government annually. That’s enough for Rhode Island Housing, the allocating agency, to support just three projects, Ventura said.

Sandywoods Farm “fits all the priorities” for financing, she said: It addresses the need for affordable family housing and environmentally friendly technology and provides economic opportunities, all while blending with the rural character of Tiverton.

Sandywoods Farm would provide “all the components you would see in a typical standalone neighborhood,” she said. “It’s a wonderful project for us to be involved in.”

Rhode Island Housing also has approved a $2.2-million first mortgage for the rental properties.

The mortgage payments will be structured according to the income that can be generated from tenants, according to Ventura. To qualify for affordable housing, the tenants must earn 50 to 80 percent of the area median income.

Accompanying this mortgage will be a “silent” second mortgage that will make up the difference between affordable rents and the cost of construction, Ventura said.

“This is the primary funding commitment that makes it a reality,” Ostiguy said of the $20-million project.

He said that Church Community Housing Corporation already has master-plan approval for the development from the Tiverton Planning Board.

The financial commitment from Rhode Island Housing means that it can move ahead with the detailed engineering drawings necessary to deal with drainage and wastewater, and return to the Planning Board for preliminary approval, Ostiguy said.

Once the DEM OKs the septic system, the Planning Board is expected to give final approval and construction can begin, Ostiguy said.

“We are very pleased. This is very good news,” he said.

Richard Godfrey, executive director of Rhode Island Housing, said, “Sandywoods Farm is an exciting, innovative development that embodies our belief that a home is more than just four walls and a roof.”

“It will offer good homes and a healthy environment, while also complementing and preserving the existing character of the community,” he said.

The Church Community Housing Corporation has previously received about $3 million in financing for Sandywoods Farm from the Federal Home Loan Bank of Boston. Sandywoods Farm, now in existence solely as a farm, is owned by Joseph Bossom.

gmacris@projo.com