Barbara Fields, Rhode Island Housing

One of the biggest challenges Rhode Island faces in getting a sustainable economic comeback underway is providing opportunities for future generations to live and work in the state. Homeownership has always been an important part of the American Dream. Millennials, like the generations before them, anticipate owning their own homes. But many young adults are saddled with rent burdens and student loan payments that delay their transition to homeownership.

For more than four decades, Rhode Island Housing has provided affordable loan options for first-time homebuyers. Now, we have teamed up with Rhode Island governor Gina Raimondo to expand on our record of success with the Ocean State Grad Grant – a new incentive for qualified young professionals to make their home in Rhode Island. The Ocean State Grad Grant helps build a bridge to the middle class for young professionals and encourages them to commit their talents to our local economy.

Governor Raimondo has made sparking Rhode Island’s economic comeback the top priority of her administration. In her first year in office, governor Raimondo has worked with the Rhode Island General Assembly to pass a bold plan aimed at spurring economic development and job creation. I expect that many of these initiatives, including tax credits for real estate developments and tax increment financing, will help build additional housing in the state and create much-needed construction jobs.

In addition, the governor included a $3 million fund for the production and preservation of affordable housing in her first budget. These funds are already at work leveraging existing federal resources to attract millions of dollars in private capital to Rhode Island and supporting good-paying construction jobs. At the same time, we are ensuring that Rhode Islanders have access to safe, high-quality housing that they can afford.

We need more college graduates living and working in Rhode Island. According to U.S. Census data, Rhode Island ranks 42^nd of 50 states in percentage growth in recent years of the number of residents aged 25 to 34 with at least a 4-year degree. We can do better. We need to attract and retain the energetic, skilled workers who can be an important part of a strong innovation-driven economy.

The Ocean State Grad Grant program provides grants for down payment assistance to qualified recent graduates buying their first home in Rhode Island. The grants are equal to 3.5% of the home’s purchase price, up to $7,000. The program is open to homebuyers who have graduated from any accredited institution in the country with an associate, bachelor’s, master’s or doctoral degree within 3 years prior to closing on their mortgage. Rhode Island is the only state in New England offering this type of incentive, making us more competitive regionally.

The Ocean State Grad Grant is designed as a forgivable second mortgage. If the buyer sells their home within the first 5 years after closing on the loan, a portion of the second mortgage would have to be repaid. We want members of the workforce to start families here and take the next steps in their career here. Providing an incentive for homeowners to stay for at least five years helps ensure that the grants are a good investment in our communities, and encourages recipients to lay down roots.

With creative programs like the Ocean State Grad Grant, Rhode Island Housing is simultaneously making housing more affordable, promoting economic growth, and helping to build vibrant communities. If you have a friend or family member who might qualify for a Grad Grant, I encourage you to visit the program’s website, www.gradgrant.org.

Barbara Fields is the executive director of Rhode Island Housing, Providence.