Establishes the Rhode Island low-income housing improvement tax credit program providing tax credits for a period of five (5) years to applicants that are competitively selected and that meet the requirements of this chapter.
Impact
The bill lays out a structure that authorizes tax credits over five years, encouraging property improvements that meet specific qualifying criteria. Eligible projects, defined under the bill, must serve low-income populations with rents that are restricted, aligning the program with federal housing standards. It sets stipulations for property owners, including that they apply through a competitive process and enter into agreements that commit their projects to adherence over a compliance period of thirty years. This could potentially improve rental conditions for low-income tenants and increase the overall housing quality in the state.
Summary
House Bill 8227, also known as the Low-Income Housing Improvement Tax Credit Act, aims to introduce a program that provides tax credits for improvements made to low-income housing units within Rhode Island. The act is positioned as a measure to address housing challenges in the state, incentivizing property owners to enhance the quality and availability of affordable housing. It introduces a clear framework whereby property owners can apply for these credits, which would be allocated based on an evaluation of their projects' need and funding qualification by the Department of Housing.
Contention
While the initiative aims to solve pressing housing issues, concerns may arise regarding the program's long-term sustainability and its fiscal implications for the state budget. A sunset provision indicates that no new tax credits will be authorized after June 30, 2029, prompting discussions around future funding and policy adjustments required beyond this date. Furthermore, since applicants are subject to a capped total of ten million dollars in tax credits each fiscal year, there might be debates on how this limit affects project selection and the overall effectiveness of the bill in expanding affordable housing solutions.