The primary impact of S1107 is on the city of Woonsocket, which has been given a stipulation allowing it to refrain from accepting additional residential properties for alternative tax assessment, provided it meets a threshold of having ten percent of its housing stock designated as affordable. This provision aims to alleviate the municipality from added burdens related to housing assessments as it maintains compliance with its affordable housing goal. Such a decision underscores the important relationship between local governments and their housing policies, particularly in managing urban development and affordability efforts.
Summary
S1107 is a legislative act concerning the levy and assessment of local taxes in Rhode Island, specifically aimed at modifying tax policies related to low-income housing. The bill introduces amendments to Section 44-5-13.11 of the General Laws, delineating conditions under which certain residential properties may be assessed and taxed. Notably, properties that have been rehabilitated and are dedicated to low-income tenants, as specified under federal definitions, would see their taxes assessed at a percentage of their gross scheduled rental income, with the potential for municipalities to determine a lower rate.
Contention
Discussions surrounding S1107 highlight a point of contention regarding the thresholds and responsibilities of municipalities in managing affordable housing. Critics of the bill may argue that allowing Woonsocket to opt out of accepting more properties could limit opportunities for low-income housing expansion, thereby exacerbating issues of housing scarcity in the region. The balancing act between local autonomy in tax matters and the broader community's needs for accessible housing will likely be a focal point of debate as the bill progresses through the legislative process.