WHEREAS, The state of Rhode Island has a significant need for affordable housing; and

WHEREAS, The state faces significant anticipated budgetary shortfalls in Fiscal Year 2002 and Fiscal Year 2003, requiring constraint of the state expenditures to achieve a constitutionally-mandated balanced budget; and

WHEREAS, The General Assembly appropriated $5,000,000 for the Neighborhood Opportunities Program in Fiscal Year 2002; and

WHEREAS, The General Assembly appropriated $340,000 in Fiscal Year 2002 for the first of ten (10) payments to fund the state's contribution towards the relocation of Travelers Aid in Providence; and

WHEREAS, These projects will increase the amount of affordable housing and transitional housing services available in the state to its citizens; and

WHEREAS, The State has developed a program that would allow the Neighborhood Opportunities Program and the state's contribution to the Travelers Aid project to be financed through bonds issued by the Rhode Island Housing and Mortgage Finance Corporation, insured, secured, or otherwise credit-enhanced or purchased by a major financial institution, to be repaid by the state over a period of approximately ten (10) years (the "Financing"); and

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WHEREAS, This financing proposal is a prudent funding mechanism that provides replacement funding for these housing programs and an additional $5,000,000 for the Neighborhood Opportunities Program in Fiscal Year 2003; and

WHEREAS, $10,000,000 of funding for the Neighborhood Opportunities Program providing $5,000,000 in both Fiscal Year 2002 and Fiscal Year 2003, will result in creation of over 200 units of affordable housing; and

WHEREAS, $2,500,000 of funding for the Travelers Aid project will satisfy the state's commitment to the Travelers Aid project improving both transitional housing and related service capabilities; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws section 35-18-1, et seq.) requires the General Assembly to provide its consent to the issuance or incurring by the state of Rhode Island of certain obligations including financing guarantees or other agreements; and

WHEREAS, This act shall serve as the concurrent resolution of approval required by the Rhode Island Public Corporation Debt Management Act (R.I. General Laws section 35-18-1 et seq.); and

WHEREAS, The project costs associated with the Neighborhood Opportunities Program are estimated to be $10,000,000 in Fiscal Year 2002 and Fiscal Year 2003 combined. The total financing obligation of the state of Rhode Island would be approximately $11.6 million, with $10 million deposited in the construction fund, $.3 million deposited in the capitalized interest fund for six months of capitalized interest, and $.14 million available to pay the associated costs of financing and $1.16 million available for deposit in a debt service reserve fund, if required. Total payments on the state's obligation over ten (10) years on the $11.6 million issuance are projected to be $13.29 million, assuming an average effective interest rate of 5.65%. The payments would be financed within the Department of Administration from general revenue appropriations; and

WHEREAS, The project costs associated with the Travelers Aid project are $12.5 million, of which the state is committing $2.5 million. The total financing obligation of the State of Rhode Island would be approximately $2.88 million, with $2.5 million deposited in the construction fund to be disbursed to Travelers Aid, $.06 million deposited in the capitalized interest fund for six (6) months of capitalized interest, and $.03 million available to pay the associated costs of financing and $.3 million available for deposit in a debt service reserve fund, if required. Total payments on the state's obligation over ten (10) years on the $2.88 million issuance are projected to be $3.22 million, assuming an average effective interest rate of 5.65%. The payments would be financed within the Department of Administration from general revenue appropriations; and

WHEREAS, To the extent funds for deposit in a debt service reserved fund are not required, the maximum principal amount will be reduced accordingly; now therefore be it

RESOLVED AND ENACTED, That providing affordable housing and transitional housing services to the State's population is a priority of this General Assembly.

That this General Assembly hereby authorizes the Governor, the Director of the Department of Administration or other appropriate state official to enter into a financial obligation, guarantee, or other agreement, or agreements evidencing the financing obligation of the State of Rhode Island for the term of the Financing in an amount not to exceed $11.6 million for the provision of funds for the Neighborhood Opportunities Program in Fiscal Year 2002 and Fiscal Year 2003; and authorizes the Governor, the Director of the Department of Administration or other appropriate state official to enter into a financial obligation, guarantee, or other agreement, or agreements evidencing the financing obligation of the State of Rhode Island for the term of the financing in an amount not to exceed $2.88 million for the state contribution to the Travelers Aid project.

That there shall be withdrawn in the Fiscal Year 2002 Supplemental Appropriations Act appropriations in the amount of $5.0 million for the Neighborhood Opportunities Program and in the amount of $340,000 for the Travelers Aid project; and be it further

RESOLVED AND ENACTED, That this Act shall take effect immediately upon passage.