A long-empty furniture store on Washington Street in West Warwick is close to becoming home for 30 people who have been homeless or are at risk of it.
RIHousing staff asked the agency's Board of Commissioners on Oct. 15 to give firm approval to up to $6.75 million in federal HOME-ARP funding for 183 Washington Street, a permanent supportive housing project by Women's Development Corporation. According to the staff request for action, staff found the development "is ready to proceed to construction" and recommended approval. As of Oct. 18, RIHousing had not posted minutes or a release confirming the board's vote.
The plan calls for substantial rehabilitation and adaptive reuse of the long-vacant former Ocean State Furniture building. It would create 30 units of deeply affordable, service-enriched housing: 26 studios and four one-bedroom apartments. Every unit would be restricted to households earning up to 30% of area median income, and 15 of the units would be assisted with HOME-ARP money. That program grew out of the 2021 American Rescue Plan Act, when Congress set aside $5 billion through HUD's HOME program for people who are homeless, at risk of homelessness or in other vulnerable groups.
The credit summary lists Stand Corporation of Warwick as general contractor and Union Studio Architecture & Community Design of Providence as architect. Maloney Properties of Wellesley, Massachusetts, would manage the building, and Thrive Behavioral Health would provide supportive services.
The HOME-ARP money would be a 0% deferred loan over 40 years. Total development cost comes to about $16.74 million, or $557,920 per unit, according to the document. Construction is budgeted at $12.705 million, with an $824,236 contingency. Financing sources include $8.2 million in state Housing 2030 permanent supportive housing money, the $6.75 million in HOME-ARP funds, $850,000 from the Federal Home Loan Bank's Affordable Housing Program, a $500,000 Eastern Bank loan, $75,000 in solar credits and energy rebates, and a deferred developer fee.
Staff flagged several factors that pushed costs up: "Excessive environmental remediation, prevailing wage requirements, and inclusion of space for supportive services."
What changed since spring
The project won its first approvals in April. At an April 16 meeting, the board unanimously approved Housing 2030 awards that included $8,196,789 for 183 Washington Street, and it gave the project a preliminary HOME-ARP reservation of $6.75 million, according to the board's minutes. During that discussion, Commissioner Orth recognized the developer and the two housing authorities for their efforts and for expanding to a different town.
Two things have shifted since then. At preliminary approval, 15 of the 30 project-based vouchers were expected to come from the West Warwick Housing Authority, but that authority couldn't provide a housing assistance payments contract. All 30 vouchers will now come from the Housing Authority of the City of Newport.
The plan had also counted on a Faircloth-to-RAD conversion for some vouchers. A May 12, 2026, HUD memo changed that process and limited HUD's ability to issue the needed approvals, so the project will no longer use it, according to the staff report.
The vouchers matter to the budget. Staff noted they contribute to a high first-year debt coverage ratio of 2.16. Operating expenses are projected at $10,047 per unit per year, above the agency's standard range, because of supportive services, a resident services coordinator and added security.
Gross rents are set at $1,450 a month for studios and $1,542 for one-bedrooms, supported by the vouchers. The developer will work with the Newport housing authority and the state's Coordinated Entry System to refer and place tenants.
Why it matters for Contractors
This is a $12.7 million construction contract on an old commercial building, which means demolition, environmental remediation and a full interior build-out of small units. Staff specifically cited heavy environmental cleanup and prevailing wage requirements as cost drivers, so subcontractors should expect certified payroll and careful hazardous materials handling.
Stand Corporation is listed as general contractor in RIHousing's own credit summary. Subcontractors and suppliers interested in the job, from abatement and demolition to framing, drywall, mechanical, electrical, plumbing and fire protection, should reach out to the builder as the project heads toward closing.
The funding resolution still requires the developer to complete all closing items under normal underwriting and HOME-ARP rules. Contractors should watch for RIHousing's posted minutes confirming the board's Oct. 15 action, and for word that the deal has closed.