Middletown Moves Forward With 36 Starter Homes Priced Below $400,000

Middletown has made public the development agreement and proposal for Aquidneck Green, a planned 36-home neighborhood at 351 East Main Road that is supported by a $3.24 million state grant.

MIDDLETOWN, R.I. — Across from Middletown Town Hall, a town-owned parcel at 351 East Main Road is slated for 36 new three-bedroom homes aimed at first-time buyers. The town published the development agreement and project proposal for the Aquidneck Green neighborhood after the project secured a $3,239,964 state grant.

Gov. Dan McKee and the Rhode Island Executive Office of Housing announced the funding award at the East Main Road site. The grant is the largest of 10 awards in a $12.7 million second round of the state’s Housing 2030 Entry-Level Homeownership Program.

For buyers on Aquidneck Island, the state’s project summary includes these details:

• Total homes: 36 three-bedroom residences built through modular construction as single-family homes, duplexes and triplexes.
• Lower-tier pricing: Five homes are set aside for households earning up to 80% of area median income, with a proposed sale price of $353,800.
• Middle-tier pricing: Thirty-one homes are reserved for households earning up to 120% of area median income, with a proposed sale price of $399,999.
• Accessibility: All 36 homes meet Type C accessibility standards, while two meet Type A standards and one meets Type B.

Who receives the state grant?

State and town announcements describe the award differently. In its press release and notice, Middletown said the town received the $3.24 million award. The governor’s office, meanwhile, identifies Marathon Development LLC as the project developer and says the bond-funded program offers competitive grants to developers building owner-occupied housing projects with five or more units.

Combined with a $2,126,108 grant for 22 units in a 37-condominium project in nearby Portsmouth, the two Aquidneck Island projects represent about 42% of the state’s $12.7 million funding round. With this round, the state has distributed the remaining 2024 housing-bond money for the program’s homeownership efforts.

At the Middletown event, state and local officials also encouraged voters to support Question 2, a separate $120 million state housing bond that includes at least $25 million for homeownership. Rhode Island voters approved Question 2 with 61.12% of the vote.

From town land to modular housing

Middletown has been preparing the East Main Road site since December 2024, when the town won $250,000 in RIHousing grant funding. The town’s Affordable Housing Committee later voted to recommend a 36-unit development there, after the Town Council rejected plans earlier in the year for a different affordable project at 26 Oliphant Lane.

The Town Council later approved a $45,000 contract with FJS Associates for development and schematic designs. The Middletown Planning Board then unanimously approved the master plan, with developers expected to return with preliminary and final plans.

Town Council President Paul M. Rodrigues pointed to the use of town-owned land as a major benefit of the plan. During an earlier Planning Board review, affordable housing consultant Frank Spinella of FJS Associates addressed the project’s financial impact.

“This project is costing the town zero,” Spinella said.

Local leaders said in the town’s release that the Aquidneck Green homes would be deed restricted and, according to the release, remain affordable “forever.” Under the state’s Low and Moderate Income Housing Act, municipalities have a 10% affordable-housing goal; the Executive Office of Housing’s 2025 Integrated Housing Report lists Middletown at 6.13%, or 460 units, in its 2024 chart.

What happens next

The town’s release said no project start date was discussed, though Spinella had previously estimated completion around spring 2027. As of the latest update, the town’s Affordable Housing Committee page lists the development agreement and the Marathon Development proposal, both dated Monday.

Residents can review the posted materials at mdl.town/AHC, share housing ideas through the town’s Middletown Shares page at middletownri.gov/576/Middletown-Shares, or apply to volunteer on the committee if they are registered Middletown voters. Questions may also be directed to Middletown Public Affairs Officer Matt Sheley at 401-842-6543 or [email protected].