Rhode Island House Bill H5980

Rhode Island 2023 Regular Session

• Introduced: 3/1/23
• Refer: 3/1/23

Caption

Housing Production Revolving Fund

Impact

The creation of the housing production revolving fund is expected to have a significant impact on state housing laws and practices. By mandating that developers reserve a minimum percentage of new units for affordable housing (20% for those earning 50% or less of area median income and an additional 10% for those earning 80% or less), the bill aims to tackle the ongoing housing affordability crisis in the state. This requirement not only promotes inclusivity in housing developments but also aligns with broader state objectives to mitigate homelessness and provide housing security.

Summary

House Bill 5980, known as the Housing Production Revolving Fund Act, proposes the establishment of a dedicated fund aimed at increasing housing production and making housing more affordable in Rhode Island. The legislation permits the Department of Housing to issue up to $50 million in housing bonds, which will be utilized to finance real estate projects and support affordable housing initiatives. This fund will play a critical role in addressing the state's housing needs by ensuring that a portion of new housing developments includes units set aside for low-income families.

Contention

While the bill has garnered support from various legislators and housing advocates, it may face contention regarding the allocation of the proposed funds and the potential implications for private developers. Critics may argue that mandating the inclusion of affordable units could dissuade developers from investing in new projects, potentially leading to a slowdown in housing growth. Furthermore, there may be discussions around how effectively the fund's resources will be managed and whether they will be sufficient to meet the housing needs of the community. The balance between fostering development and ensuring affordability will be a central point of debate as the bill progresses.