With monthly statewide residential foreclosures from January to June of this year outpacing those for the same period last year, it would seem there would be more affordable housing. And with housing costs having declined in recent years, it would seem rents would have also declined.

Not so in either case, says Nellie M. Gorbea, executive director of HousingWorks RI.

In an interview prior to today’s release of the HousingWorks RI annual Factbook, Gorbea underscored the need for more affordable housing and the impact the $50 million approved by voters in 2006 has had on the state’s economy. She is also calling on legislators to bring another housing bond before voters in 2012 or fund the program.

“At a time when there’s a lot of debate over government money, here’s a program that works,” Gorbea said.

She said there are still funds “in the pipeline” from the 2006 bond that has resulted in the development of 1,255 long-term affordable homes in 30 Rhode Island communities, but they will soon dry up. The report finds the number of homes, of which 80 percent are rentals and the remaining owner-occupied is 255 greater than what had been projected, a factor of the recession and declining home values.

Further, the report finds that the $50 million invested has generated about $800 million in economic activity.

“If we don’t continue,” Gorbea said of the state’s affordable housing program, “what will that do to the economy?” She is hopeful policymakers and legislators will understand the connection between affordable housing and the economy and work to see that the program is continued. She said the purpose of the report is to provide community leaders with “actual data” on which to make decisions.

“We need to promote economic growth,” she said.

Jean Johnson, executive director of the House of Hope that has used bond funding to develop affordable housing, would like to see the state have an ongoing affordable housing program, not one subject to periodic bond issues.

“It’s done a very good job,” she said of the bond, “but we need a dedicated funding stream.” Such a program she believes would leverage millions of dollars and achieve the goal of enabling median income people to buy a house.

HousingWorks RI is a coalition of 140 members, including banks, chambers of commerce, colleges, community-based agencies and advocates, faith groups, manufacturers, preservationists, realtors, municipal officials and unions. The coalition shares a mission of ensuring all Rhode Islanders have a quality, affordable home.

In Warwick, with 36,592 year-round housing units, 1,984 qualify as long-term affordable. That number is further broken down as 1,657 homes reserved for the elderly, 141 for families and 186 for persons with special needs. The report finds 10 of the homes are funded through Building Homes Rhode Island and if the city was to meet the 10 percent threshold of affordable housing set by the state’s low and moderate Income Housing Act of 2004, it would need an additional 1,675 homes.

Contrary to the assumption that increased foreclosures result in more affordable housing, Gorbea said empty houses are “a symptom of unaffordability.” She said that the money needed to bring these houses up to code “is beyond the savings people have.”

Foreclosures through June of this year averaged 188 per month as compared to 157 per month in 2010.

“Until the shortage of long-term affordable housing is addressed, Rhode Island will continue to be vulnerable to instabilities in the housing market, including foreclosures,” Gorbea said.

The report shows that for 2010 there were 225 foreclosures in Warwick and that 31 percent of housing sales for the year were distressed properties. The median cost of a Warwick single-family home increased 53 percent from $110,000 in 2000 to $167,889 in 2010. During the same period the average rent for a two-bedroom apartment increased 38 percent from $817 to $1,130.

Warwick Tax Collector and Assessor Kenneth Mallette has a firsthand view of the housing market and unfortunately, he says, it’s not bright.

“There’s been no change in the last four years in this mess,” he said yesterday. He doesn’t see the program as impacting the housing market as those affordable homes sold under the program carry deed restrictions requiring discounts when sold to ensure sellers are not profiting.

While Warwick single-family foreclosures were among the highest in the state for 2010, Johnson said the program has helped neighborhoods from becoming blighted by ensuring that properties are cared for.

“I believe the money has helped communities look nice and keep up property values,” she said.

Gorbea also has concern over regulatory proposals to require a mortgage minimum 20 percent down payment and elimination of the tax deduction of mortgage interest payments. The proposals are heavily opposed by the National Association of Realtors that view the measures as having a chilling effect on the housing market and putting home ownership further out of reach.

“It would make it [affordable housing] a lot harder,” Gorbea said.

As it is, an assumed down payment of 3.5 percent can be a stretch. Based on the median cost of $176,005 for a Rhode Island home, that is $6,162, she pointed out.

While the housing market has plunged in the last three years, both rentals and the cost of single-family homes have increased 54 percent since 2000.

“Homes are way above where they were,” says Gorbea. By the same token wages haven’t kept pace.

The report finds the average private sector wage for jobs in Warwick is $37,076. The typical monthly housing payment for a $167,889 house is calculated at $1,324. Yet the income required to afford a $167,889 house is projected at $52,962. The income projected to meet a monthly 2-bedroom apartment rental of $1,130 is $45,200.

On the positive side, Warwick is one of five communities including Providence, Woonsocket, Central Falls and Pawtucket where a household earning the state’s median household income of $54,119 would be able to afford a median-priced single-family home.

Pointing to neighboring states, Gorbea said Massachusetts has about $285 million and Connecticut $130 million in their operating and capital budgets for housing programs. Although the programs are different, Gorbea makes the point that Rhode Island has budgeted nothing.

Her message is clear – Rhode Island needs to do more to promote economic growth through the development of long-term affordable housing.