Requires an appropriation of an additional five percent (5%) of the assessed value of all low-income housing as part of the payment in lieu of taxes program to the municipality where the property is located beginning in fiscal year 2026.
Impact
The impact of S2567 on state laws and local municipalities could be significant. By increasing the percentage of state reimbursement for low-income housing from 27% to 32%, the bill aims to alleviate financial pressures on local governments that manage such properties. This funding could provide municipalities with additional resources to support necessary public services and infrastructure, thereby enhancing community outcomes. Additionally, it reinforces the state’s commitment to supporting low-income housing initiatives, which could have positive consequences for housing availability and affordability.
Summary
Bill S2567 is new legislation aiming to amend the existing payment in lieu of taxes (PILOT) program in Rhode Island. This bill requires the state to appropriate an additional five percent (5%) of the assessed value of all low-income housing properties as part of the PILOT program, beginning in fiscal year 2026. The current formula allows municipalities to receive 27% of the property taxes that would have been collected if these properties were taxable, and the amendment seeks to increase local revenues through enhanced state support for municipalities that host low-income housing.
Contention
Notable points of contention regarding S2567 may arise surrounding the effectiveness and adequacy of the proposed funding increase. Critics could challenge whether the additional five percent is sufficient given the increased costs associated with maintaining low-income housing. There may also be concerns about the long-term sustainability of state funding and how it impacts budget allocations for other essential services. Furthermore, some stakeholders may argue against reliance on state appropriations for housing, advocating for more comprehensive reforms in housing policy that address root causes of housing instability.