Research & Reporting > State Fiscal Recovery Funds Dashboard > Millrace District
Last Updated: 2.10.26
Rhode Island Affordable Development Activities
Millrace District
Woonsocket
Developer: NeighborWorks Blackstone River Valley
Site visit: 08.2025
At the entrance to Main Street in downtown Woonsocket, three historic mill buildings have been reimagined as the Millrace District – a project that blends history, housing, and community into a vibrant mark of revitalization for the city. Surrounded by the Museum of Work and Culture and Millrace Kitchen, an event space and culinary incubator, developer NeighborWorks Blackstone River Valley has added 70 new live/work homes along the Blackstone River.
Today’s Millrace lives within the walls of the former Woonsocket Rubber Company and Island Machine Co., both listed on the National Register of Historic Places and each with deep ties to Rhode Island’s industrial heritage. At one point condemned, the buildings stand now at the center of renewed efforts to bring affordable housing, arts, and economic activity into the city.
With a mix of studio, one-, and two-bedroom units, Millrace offers 55 apartments affordable to households earning up to 60% of the Area Median Income; 11 of those are paired with RIHousing Section 811 vouchers, ensuring stable and supportive housing for Rhode Islanders with disabilities. With the top floors filled with homes, the ground floor of each building is dedicated to office/commercial and community spaces, providing opportunities for even more professional and personal connection.
Millrace is the result of a number of funding sources, including State Fiscal Recovery Funds and federal Low-Income Housing Tax Credits administered by RIHousing. The investments made into these formerly blighted buildings not only increase Woonsocket’s supply of modern, affordable housing, but also support small businesses, creative professionals, and long-term residents in a vibrant, community-centered development.
- Total Units: 70 units
- Total Affordable Units: 55 units
- Affordability: 30%-60% AMI
- Construction Status: completed
Funding Sources and Amount:
| Sources | Amount |
| Acquisition Revitalization Program (ARP) | $975,000 |
| Building Homes Rhode Island | $2,949,401 |
| Capital Magnet Fund | $100,000 |
| State Fiscal Recovery Fund (“SFRF”) | $5,919,000 |
| Deferred Development Fee | $1,172,631 |
| Fed. Historic Tax Credit Proceeds | $4,976,425 |
| General Partner Capital | $100 |
| Housing Production Fund | $1,000,310 |
| Housing Trust Fund | $1,745,430 |
| LIHTC Proceeds – 9% | $10,522,013 |
| RIH First Mortgage | $1,350,000 |
| RIH HOME Loan | $2,000,000 |
| Sponsor Loan | $1,827,185 |
Total Development Cost: $34,537,495
SFRF Funds Expended To-Date: $5,919,000
Ribbon Cutting 2.9.26
