2023 -- S 0866
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LC002652
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
____________
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- HOUSING DEVELOPMENT
FUND
Introduced By: Senators Kallman, Lombardo, Acosta, Cano, Euer, Burke, DiPalma,
Gallo, Quezada, and Mack
Date Introduced: March 30, 2023
Referred To: Senate Finance
It is enacted by the General Assembly as follows:
SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND 1
GOVERNMENT" is hereby amended by adding thereto the following chapter: 2
CHAPTER 55.2 3
HOUSING DEVELOPMENT FUND 4
42-55.2-1. Short title. 5
This chapter shall be known and may be cited as the "Housing Development Fund." 6
42-55.2-2. Definitions. 7
As used in this chapter: 8
(1) "Affordable housing unit" means a unit that may be rented or sold to any individual 9
classified as "very low-income," "low-income" or "moderate-income" as those terms are defined in 10
federal law measured at the time of the purchase or for the duration of a rental tenancy of an eligible 11
unit. 12
(2) "Applicant" means a developer or occupant applying for a grant of money or land, or 13
loan or conditional loan under this chapter. 14
(3) "Business" means an entity registered with the secretary of state including, but not 15
limited to, a corporation as defined in § 44-11-1, a nonprofit corporation, benefit corporation, 16
limited liability company, and/or an unregistered business formed as a partnership, association or 17
sole proprietorship. 18
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(4) "Capital investment" in a development or development project means costs or expenses 1
by a business or any affiliate of the business incurred after application for: real estate asset 2
acquisition, site preparation, construction, repair, renovation, improvement, equipping, or 3
furnishing on real property or of a building, structure, facility, or improvement to real property. 4
(5) "Department" means the department of housing established pursuant to § 42-64.34-1. 5
(6) "Developer" means a person, firm, corporation, partnership, association, political 6
subdivision, public housing authority or other entity, whether for-profit or not-for-profit, that 7
proposes to divide, divides, or causes to be divided real property into a subdivision or proposes to 8
build, or builds a building or buildings or otherwise improves land or existing structures, which 9
division, building, or improvement of land qualifies for benefits under this chapter. 10
(7) "Fund" means the housing development fund created pursuant to this chapter. 11
(8) "Market rate housing unit" means a unit that may be sold to any individual earning any 12
amount without any income restriction and is sold at fair market value. 13
(9) "Occupant" means a resident as a tenant, owner, or joint venture partner, occupying 14
space pursuant to a lease or other occupancy agreement within any structure or building developed 15
on land which is subject to assistance being provided from the fund. 16
(10) "Owner-occupant" is an "occupant" who resides in a building or structure and is the 17
title holder of the parcel upon which the building or structure is situated. 18
(11) "Project cost" means the costs incurred in connection with a project by an applicant 19
until the issuance of a permanent certificate of occupancy, or until such other time specified by the 20
secretary of housing. 21
(12) "Project financing gap" means: the part of the total project cost that remains to be 22
financed after all other sources of capital have been accounted for (such sources will include, but 23
not be limited to, developer-contributed capital), which shall be defined through rules and 24
regulations promulgated by the department of housing. 25
(13) "Real estate assets" shall be defined to include, but not be limited to: land, buildings, 26
fixtures, improvements, easements, rights-of-way, and all other rights of ownership, possession 27
and/or use associated with real property. 28
(14) "Workforce related housing unit" means a unit that may be sold to any individual 29
earning above the threshold for an affordable housing unit, but below the maximum threshold set 30
pursuant to 26 U.S.C. § 143 as measured at the time of the purchase of an eligible unit or as may 31
otherwise be defined by federal law. 32
42-55.2-3. Establishment of the fund -- Uses -- Composition. 33
(a) The housing development fund (the "fund") is hereby established under the jurisdiction 34
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of and shall be administered by the department of housing in order to promote the development, 1
redevelopment and update of housing in order to make housing more affordable and more available 2
in the state. 3
(b) The uses of the fund include: 4
(1) Financing real estate asset acquisition by the department for the land bank described in 5
chapter 55.3 of title 42; 6
(2) Filling project financing gaps for residential and multifamily real estate projects eligible 7
under the criteria created pursuant to § 42-165-6; 8
(3) Financing public infrastructure and public facilities to support or enhance residential 9
development projects on land owned by the land bank or projects qualifying for development under 10
§ 42-165-6 including transportation, utility services such as water, sewer, electrical, and Internet 11
communications, parks, greenways, playgrounds and recreational spaces, and community facilities. 12
(4) Hiring of per diem, project based, part-time, or seasonal staff as determined to be 13
necessary by the secretary of housing to assist municipalities in the planning and/inspection of 14
potential projects and projects that are provided assistance from the fund. 15
(5) Provide support for voluntary "wraparound services" for those occupying housing units 16
completed with assistance from the fund to include, but not be limited to: 17
(i) Coordination with other agencies to ensure social worker assignment; 18
(ii) Assignment to an accountable care organization; 19
(iii) Financial literacy training; 20
(iv) Assistance in obtaining access to mental, social and behavioral health supports and 21
treatments; 22
(v) Substance abuse recovery; and 23
(vi) Other supports for residents to maintain their ability to fulfill the requirements of 24
tenancy as determined by the department. 25
(c) The fund shall consist of: 26
(1) Money appropriated from the American Recovery Program Act funds allocated to the 27
state; 28
(2) Money appropriated in the state budget to the fund; 29
(3) Money made available to the fund through federal programs or private contributions; 30
(4) Repayments of principal and interest from loans made from the fund; 31
(5) Proceeds from the sale, disposition, lease, or rental of collateral related to financial 32
assistance provided under this chapter; 33
(6) Application or other fees paid to the fund to process requests for financial assistance; 34
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(7) Recovery made by the department or on the sale of an appreciated asset in which the 1
department has acquired an interest under this chapter; and 2
(8) Any other money made available to the fund. 3
(d) No assets in the fund shall be subject to attachment, execution, lien or other legal 4
process, judicial or administrative, in law or in equity, except when a particular asset within the 5
fund is pledged as security for any loan agreement and in such case the particular asset shall be 6
subject to lien, attachment or execution for satisfaction of the loan only and no other assets in the 7
fund shall be taken, reached or applied. 8
42-55.2-4. Assistance -- Powers of the department -- Reports. 9
(a) An applicant seeking assistance under this chapter shall submit a request to the 10
department pursuant to an application procedure prescribed by the secretary of housing. 11
(b) Any approval for funding under this chapter may only be granted under the authority 12
of the secretary of housing. 13
(c) The secretary may set the terms and conditions for assistance under this chapter by 14
regulation, program design, request for proposals or other predetermined method for which 15
applicants may apply. 16
(d) The secretary shall publish a report on the fund at the end of each fiscal year. The report 17
shall contain information on the commitment, disbursement, and use of funds allocated under the 18
fund. The report shall also, to the extent practicable, track the impact of projects that have been 19
completed using the fund including, but not limited to, information on housing availability and 20
economic data. The report is due no later than sixty (60) days after the end of the fiscal year, and 21
shall be provided to the speaker of the house of representatives, the president of the senate and the 22
secretary of commerce. 23
42-55.2-5. Severability. 24
If any clause, sentence, paragraph, section or part of this chapter shall be judged by any 25
court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate 26
the remainder thereof, but it shall be confined in its operation of the clause, sentence, paragraph, 27
section or part directly involved in the controversy in which that judgment shall have been rendered. 28
Notwithstanding the foregoing, in the event that any term or provision is judged by any court of 29
competent jurisdiction to be invalid, the general assembly shall promptly act to address such clause, 30
section, sentence, paragraph, or part directly involved in which the subject judgment shall have 31
been rendered in order to provide, as near as practicable, the result originally intended by such 32
clause, section, sentence, paragraph or part without running contrary to such judgment. 33
SECTION 2. Title 42 of the General Laws entitled "STATE AFFAIRS AND 34
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GOVERNMENT" is hereby amended by adding thereto the following chapter: 1
CHAPTER 55.3 2
DEPARTMENT OF HOUSING LAND BANK PROGRAM 3
42-55.3-1. Establishment of program. 4
There is hereby established a program to be operated by the department of housing called 5
the "housing land bank." 6
42-55.3-2. Establishment of account. 7
The department of housing ("department") shall establish an account into which title to real 8
estate assets shall be deposited and held for use in the housing programs described in chapters 55.2 9
and 165 of this title. 10
42-55.3-3. Acquisition of property and deposit into the land bank. 11
(a) The department may acquire real property or interests in real property by gift, devise, 12
transfer, exchange, foreclosure, purchase, or otherwise on terms and conditions and in a manner 13
the department considers proper and deposit such property into the housing land bank ("land 14
bank"). 15
(b) The department may use its own funds or funds in the housing development fund 16
created pursuant to chapter 55.2 of this title to acquire real property by purchase contracts, lease 17
purchase agreements, installment sales contracts, and/or land contracts, and may accept transfers 18
from municipalities, other quasi-public entities, nonprofit entities or the state upon such terms and 19
conditions as agreed to by the department and the municipality, entity or state. 20
(c) Notwithstanding any other law to the contrary, any municipality may freely transfer to 21
the land bank real property and interests in real property of the municipality on such terms and 22
conditions and according to such procedures as determined jointly by the municipality and the 23
department. 24
(d) The acquisition of real property by the department pursuant to this section, from entities 25
other than political subdivisions, shall be limited to real property that is tax delinquent, tax 26
foreclosed, subject to municipal receivership, vacant or abandoned, or unimproved land; provided, 27
however, that the land bank shall have authority to enter into agreements to purchase other real 28
property consistent with an approved development plan in accordance with chapter 165 of this title. 29
42-55.3-4. Public inspection of records. 30
(a) The department shall maintain and make available for public review and inspection a 31
complete inventory of all property received by the department for deposit into the land bank. Such 32
inventory shall include: the location of the parcel; the purchase price, if any, for each parcel 33
received; the current value assigned to the property for purposes of real property taxation; the 34
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amount, if any, owed to the locality for real property taxation or as a payment in lieu of taxes; the 1
identity of the transferor; and any conditions or restrictions applicable to the property. 2
(b) All parcels received by the department and deposited into the land bank shall be listed 3
on the received inventory established pursuant to subsection (a) of this section within one week of 4
acquisition and shall remain in such inventory for one week prior to disposition. Such inventory 5
shall be listed on a website for the department accessible to the public. 6
42-55.3-5. Departmental authority to reject proposed transfers of property. 7
The department is hereby allowed to reject any proposed transfer of any real estate asset 8
for any reason including, but not limited to, polluted, contaminated or problematic parcels which 9
would, in the judgment of the department, create a harm to the finances, operations or interests for 10
the land bank, the department or the state. 11
42-55.3-6. Property in the land bank exempt from legal process. 12
(a) Any land deposited into the land bank shall not be subject to attachment, execution or 13
any judicial or administrative process during the period it is held by the department, unless that 14
parcel or asset is pledged as security for any loan agreement made for funding improvements related 15
to that parcel in which case such process shall be available against that asset only, and no liens, 16
fines, penalties, assessments or other charges shall be made against the property, the land bank, the 17
department or the state for any reason during the period it is held in the land bank. 18
(b) In the event there is a division in the freehold interest where only a portion of the rights 19
related to the property is located in the land bank, the remainder may be made subject to legal 20
process as long as such process does not act to divest the land bank of any of its attributes of 21
ownership or ability to develop the property. 22
(c) In the event of a divided ownership where a portion of the fee or property interest is 23
held by the land bank or any other conflict in ownership which may arise under this section, the 24
department may petition the superior court for partition in which after the required notice and 25
service of process is completed upon confirmatory motion, the land bank shall be awarded and 26
receive the whole fee simple interest by way of an interim order or a final judgment. An interim 27
order or a final judgment constitutes a recordable order which shall be considered binding in the 28
chain of title and any of the remainder portion claimed by another owner or creditor shall be subject 29
to owelty under the law or in equity based on the value of the interest transferred to the land bank. 30
Neither the department nor any land subject to such a partition action shall be restrained nor 31
enjoined and no equitable order shall issue to prevent the development of the property by the 32
department or its applicant or assignee. 33
42-55.3-7. Required review of surplus land by state and municipal entities. 34
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(a) Conduct of required review. All state and municipal public bodies and quasi-public 1
entities shall conduct a review of real estate assets owned by or under the control of the body or 2
quasi-public entity and determine which real estate assets are not under current use or planned use 3
by December 31, 2023. 4
(b) Real estate asset planning. Each state and municipal public body and quasi-public entity 5
shall create a long-term plan for those real estate assets not in current use. Such a plan shall provide 6
an estimated date when each real estate asset will be employed for use by the agency, what the 7
proposed use will be, and if known, the estimated costs to develop the land for the proposed use. 8
(c) A list of all real estate assets which are not in use shall be submitted to the department 9
along with a list of those parcels for which there are plans to put said parcel to use within ten (10) 10
years and evidence of what that use will be. 11
(d) The department will evaluate each parcel submitted to the department, along with the 12
proposed use for each parcel so denominated by each public body, for the appropriateness for 13
development into residential housing units. A copy of the list shall also be provided to the state 14
properties committee. 15
(e) Notice to the department. If the department determines that a particular parcel listed on 16
any list required in subsections (b) and (c) of this section is determined to be appropriate for 17
residential real estate development, the department shall provide notice to the state or municipal 18
public body or quasi-public agency that is in control of or owns the parcel. 19
(f) Required donation or sale to land bank. Upon a determination by the department that a 20
particular real estate asset listed pursuant to subsection (d) of this section is suitable for residential 21
real estate development and the department has determined that it desires to acquire the real estate 22
asset for the land bank, if said parcel is not listed as being planned for use within the next ten (10) 23
years, the state or municipal public body or quasi-public agency, as applicable, shall be required, 24
upon notice by the department, to enter into a negotiation with the department for the transfer of 25
the parcel to the land bank. If the department and the state or municipal public body or quasi-public 26
agency cannot agree on a transfer value, then establishment of a value through binding arbitration 27
by a panel comprising of three (3) licensed real estate appraisers licensed to appraise the particular 28
type of property at issue shall be required with one appointed by the department, one by the owner 29
of the parcel and one chosen by the two (2) appraisers. The middle appraisal shall be considered 30
the final purchase price subject to acceptance by the department. If the value is such that the 31
department desires to continue with the purchase, then the state or municipal public body or quasi-32
public agency shall be required to consummate the sale. 33
(g) Parcels exempt from the required donation or sale. The following real estate assets shall 34
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be exempt from the required sale procedure in subsection (f) of this section: 1
(1) All real estate assets under the control of the Quonset development corporation within 2
the Quonset business park; 3
(2) All real estate assets under the control of the Rhode Island airport corporation; 4
(3) All real estate assets under the control of the department of transportation held for 5
proposed roads, highways, railways or other transportation infrastructure; 6
(4) All real estate assets under the control of the Rhode Island public transit authority; 7
(5) All real estate assets in the immediate vicinity of the state house and state offices in the 8
capitol district as bounded westerly by Interstate 95, southerly by Memorial Boulevard, northerly 9
by Orms Street and easterly (from north to south) by Charles Street then by Mill Street and then by 10
the Moshassuck River; 11
(6) All real estate assets connected with judicial branch activities; 12
(7) All real estate assets controlled by the department of corrections; 13
(8) All real estate assets controlled by the university of Rhode Island; 14
(9) All real estate assets controlled by Rhode Island college that are located in Providence; 15
(10) All real estate assets located in Cranston at the John O. Pastore Center or in its 16
immediate vicinity; 17
(11) All real estate assets controlled by the office of veterans' services in the vicinity of the 18
Rhode Island veterans' cemetery and the Rhode Island veterans' home; 19
(12) All real estate assets related to Eleanor Slater Hospital including, but not limited to, 20
facilities in Cranston and Burrillville; 21
(13) All assets located in a flood zone; 22
(14) All assets located in a wetland designated by the department of environmental 23
management; 24
(15) All assets located within the jurisdiction of the coastal resources management council; 25
(16) All real estate assets which are subject to any farm, forest or open space restriction 26
against building through the department of environmental management, any agricultural 27
conservancy trust, or any not-for-profit entity or trust; 28
(17) All state parks, conservation areas, management areas, beaches, fishing areas and 29
other sites subject to the management and/or control of the department of environmental 30
management; 31
(18) All parcels designated by the director of the department of emergency management as 32
necessary for emergency preparation purposes; 33
(19) All parcels abutting or adjacent to hospitals and healthcare facilities that are reserved 34
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for future expansion of the healthcare or hospital facility; 1
(20) Real estate assets subject to the control or oversight of the I-195 redevelopment 2
commission; 3
(21) Real estate assets owned, controlled or overseen by the Rhode Island historical 4
preservation & heritage commission; and 5
(22) Any property being operated as a farm, for recreational purposes, open space, or as a 6
water supply or for the provision of utilities or serves as a buffer to any watershed, water supply or 7
utility. 8
(h) Donation or sale prior to disposition. Prior to any disposition of any real estate asset by 9
any state or municipal public body or quasi-public agency through sale, long-term lease of more 10
than five (5) years, surplus of property, auction, donation or other method, notice shall be provided 11
to the department along with the opportunity to timely evaluate the property and decide whether to 12
exercise an option to purchase or decline to purchase the parcel which shall not be less than forty-13
five (45) days. Notice of the proposed auction date, sale date or date of the disposition shall be 14
provided to the department. Unless a public auction or sale is required pursuant to other law or 15
judicial order, the department shall have the right of first refusal for purchase of the real estate asset 16
by the land bank at: 17
(1) The advertised price, or, if none, then; 18
(2) At the price offered by an alternative buyer, or, if none, then; 19
(3) At the lowest price acceptable to the selling entity if acceptable to the department. The 20
department shall inform the selling agency of its decision to exercise its right of first refusal prior 21
to the auction date, sale date or disposition date contained in the original notice. 22
SECTION 3. Title 42 of the General Laws entitled "STATE AFFAIRS AND 23
GOVERNMENT" is hereby amended by adding thereto the following chapter: 24
CHAPTER 165 25
DEPARTMENT OF HOUSING RESIDENTIAL DEV ELOPMENT PROGRAMS 26
42-165-1. Definitions. 27
(a) As used in this chapter, words and terms, shall have the meaning set forth in § 42-55.2-28
2 unless this chapter provides a different meaning or unless the context indicates a different 29
meaning or intent. 30
(b) Within this chapter, the following words and terms shall have the following meanings 31
unless the context indicates a different meaning or intent: 32
(1) "Department" means the department of housing established pursuant to § 42-64.34-1. 33
(2) "Foreclosing governmental unit" means any municipality, water service, sewer provider 34
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with the power to sell a property through chapter 9 of title 44 or with the power to foreclose as well 1
as the "department." 2
(3) "Housing structures" means a building or structure containing one or more "housing 3
units." 4
(4) "Housing units" means a building or a portion of a building which is conveyed or rented 5
to a single family for their occupancy. Such units shall be separate from all other units in a structure 6
and contain separate rooms for each of the following purposes: at least one bathroom with a shower 7
and/or tub unit, one kitchen with a refrigerator, kitchen sink and cooking appliances, a living or 8
common family space, at least two (2) bedrooms, and a closed space for utilities and mechanicals 9
servicing the unit. 10
(5) "Land bank" means housing land bank established in § 42-55.3-1. 11
(6) "Secretary" means the secretary of housing appointed pursuant to § 42-64.34-1. 12
(7) "State and municipal public bodies" means, the state, any city, any town and any 13
executive, legislative, judicial, regulatory, or administrative body of the state, or any political 14
subdivision thereof; including, but not limited to: any department, division, agency, commission, 15
board, office, bureau, authority; any school, fire, or water district, or other agency of Rhode Island 16
state or local government. 17
42-165-2. Creation of programs. 18
The department of housing is hereby authorized to create and establish programs for 19
promoting and encouraging the preservation, expansion and sound development of new and 20
existing residential housing units thereby increasing the housing security of the citizens of this state 21
in safe and affordable housing which shall also promote the economic development of the state by 22
ensuring safety for its workforce and families. 23
42-165-3. General powers. 24
(a) Except to the extent inconsistent with any specific provision of this chapter, the 25
department shall have and may exercise all general powers set forth in chapters 55.2, 55.3 and 26
64.34 of this title necessary or convenient to effect its purposes, which shall include the powers to 27
acquire and to dispose of real property, subject to the provisions of this chapter, without the 28
necessity of obtaining the approval of the state properties committee or otherwise complying with 29
the provisions of title 37 and to dispose of projects as provided for in § 42-64-11. 30
(b) The department is further authorized: 31
(1) To ask, demand, recover, collect, receive, hold, and possess all sums of money, debts, 32
dues, goods, wares, merchandise, chattels, effects, bonds, notes, checks, drafts, accounts, deposits, 33
safe deposit boxes, interests, dividends, stock certificates, certificates of deposit, insurance benefits 34
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and proceeds, documents of title, personal and real property, tangible and intangible property, and 1
property rights, liquidated or unliquidated, that now are, or hereafter, shall be, or become, due, 2
owing, or payable in respect to the property, and upon receipt thereof, or of any part thereof, to 3
make, sign, execute, and deliver such receipts, releases, or other discharges for the same as the 4
secretary shall deem proper and deliver the amounts required to the housing development fund 5
created by chapter 55.2 of this title. 6
(2) To lease, purchase, exchange and acquire, and to bargain, contract, and agree for the 7
lease, purchase, exchange, and acquisition of, and to take, receive, possess, and manage any real or 8
personal property related in any way to the property, tangible and intangible, or any interest therein. 9
(3) Subject to the right of any tenant under chapter 18 of title 34, to enter into and upon all 10
and each of the real properties constituting a part of, or related in any way, to the property, and to 11
let, manage, and improve the real property or any part thereof, and to repair or otherwise improve 12
or alter, and to insure any buildings or structures thereon. 13
(4) Subject to the provisions of this chapter, to market and sell, either at public or private 14
sale, or exchange any part or parts of the real or personal properties, including indebtedness or 15
evidence thereof, constituting a part of or related in any way to the property, including sales on 16
credit, and for that purpose to execute and receive all promissory notes, bonds, mortgages, deeds 17
of trust, security agreements, and other instruments that may be necessary or proper, and to bargain, 18
contract, and agree with respect to the sale or exchange of such properties; and to execute and 19
deliver good and sufficient deeds, bills of sale, assignments, or other instruments or endorsements 20
for the conveyance or transfer of the same; and to give receipts for all or any part of the purchase 21
price or other consideration. 22
(5) To sign, endorse, execute, acknowledge, deliver, receive, and possess such applications, 23
contracts, agreements, options, covenants, deeds, conveyances, trust deeds, mortgagees deeds, 24
security agreements, bills of sale, leases, mortgages, assignments, insurance policies, bills of lading, 25
warehouse receipts, documents of title, bills, bonds, debentures, checks, drafts, bills of exchange, 26
notes, stock certificates, proxies, warrants, commercial paper, receipts, withdrawal receipts, and 27
deposit instruments relating to accounts or deposits in, or certificates of deposit of, banks, savings 28
and loan or other institutions or associations, proofs of loss, evidences of debts, releases, and 29
satisfactions of mortgages, judgments, liens, security agreements, and other debts and obligations, 30
and other instruments in writing of whatever kind and nature as may be necessary or proper in the 31
exercise of the rights and powers herein granted. 32
(6) To enter into subordination agreements, inter-creditor agreements, reinstatement 33
agreements, "stand still" and "stand-by" agreements, modification agreements, forbearance 34
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agreements, and other contracts having the effect of subordinating, modifying, renewing, 1
restructuring or otherwise altering the rights, obligations, or liabilities of the department or its 2
predecessors, under or with respect to any indebtedness, property, or other assets constituting or 3
securing any property. 4
(7) To make demands, give notices of default, notices of intention to accelerate, notices of 5
acceleration, or such other notices as the department deems necessary or appropriate, and to take 6
other actions and exercise other rights that may be taken under the terms of any loan agreements, 7
security agreements, guaranties, or other documents or agreements evidencing, or otherwise 8
relating to, the property, including foreclosure, lease, sale, taking possession of, realization upon, 9
or any other disposition of any property or any collateral therefor or guarantee thereof. 10
(8) To exercise any powers and any duties previously vested in the commerce corporation 11
or now vested in the department as a partner, joint venture, participant, or other joint-interest holder 12
with respect to any property, or to concur (or not) with persons jointly interested with the 13
department in any property. 14
(9) With respect to the property: 15
(i) To sue on, or otherwise prosecute, any claim or cause of action, or commence or seek 16
any legal, equitable, or administrative or other remedy in any legal, administrative, arbitration, 17
mediation, or other proceeding whatsoever (including, non-judicial repossessions and foreclosures 18
or similar actions to recover collateral); 19
(ii) To defend, or otherwise participate for, or in the name of, the department in any legal, 20
administrative, arbitration, mediation, or other proceedings; 21
(iii) To process, determine, or adjudge any claim or cause of action for, or in the name of, 22
the department; 23
(iv) To compromise, settle, discharge or resolve, or make, execute, or deliver any 24
endorsements, acquittances, releases, receipts, or other discharges of any claim, cause of action, 25
determination, judgment, or other proceeding for, or in the name of, the department; and 26
(v) To prepare, execute, and file ad valorem, franchise and other tax returns, protests and 27
suits against taxing authorities, and to prepare, execute, and file other governmental or quasi-28
governmental reports, declarations, applications, requests and documents in connection with any 29
property, and to pay taxes in connection with the property as the department deems necessary or 30
appropriate, or as otherwise required by law. 31
(10) To own, hold, improve, operate, manage, and regulate utilities for properties subject 32
to its control or ownership and to establish rates, fees, and charges, to adopt regulations, and to 33
impose penalties for any services or utilities it provides, or causes to have available, and to have 34
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functions and exercise powers as necessary and appropriate as the successor to the commerce 1
corporation under the provisions of §§ 42-64-4, 42-64-7.4, 42-64-7.8, 42-64-7.9 and 42-64-9.1 2
through 42-64-9.10, inclusive or under its own authority as granted by law. 3
(11) Subject to the provisions of this chapter, to enter into agreements with any city, town, 4
district, or public corporation with regard to application and/or administration of zoning or other 5
land use ordinances, codes, plans, or regulations, and cities, towns, districts, and public 6
corporations are hereby authorized and empowered, notwithstanding any other law to the contrary, 7
to enter into such agreements with the department and to do all things necessary to carry out their 8
obligations under such agreements. 9
(12) To be exempt from taxation for projects which have not been completed, to pay 10
twenty-five percent (25%) of the real estate taxes owed to a municipality for projects which have 11
been completed and where a housing unit is in the possession of the department, and to enter into 12
agreements for payments in lieu of taxes in the same manner as provided for in § 42-64-20. Any 13
payments in lieu of taxes for housing completed under this chapter with the assistance of funds or 14
property provided pursuant to chapter 55.2 and/or 55.3 of this title shall be exempt from the 15
calculation of the maximum tax rate and/or levy under § 44-5-2. 16
(13) To purchase and obtain water supply and water service from any city, town, water 17
district, or other water supply authority. In particular, the department is authorized to: 18
(i) Enter into agreements or contracts with any city, town, water district, or other water 19
supply authority to purchase, acquire, and receive water supply and water service. 20
(ii) Enter into cooperative agreements with cities, towns, counties, water districts, or other 21
water supply authorities for the interconnection of facilities or for any other lawful corporate 22
purposes necessary or desirable to effect the purposes of this chapter. 23
(iii) Connect the water supply system on any property or project controlled, approved, 24
owned or overseen by the department with any city, town, water district, or other water supply 25
authority that receives or has a connection with the city of Providence and/or the Providence water 26
supply board (or any successor thereof) and purchase, connect to, receive, and enter into agreements 27
to receive water supply from any city, town, water district, or other water supply authority 28
regardless of the origin of such water supply. The city of Providence and the Providence water 29
supply board (and any successor thereof) are authorized and directed to supply water to property, 30
projects and location as directed by the department either directly or via connections between the 31
property or project and any city, town, water district, or other water supply authority, 32
notwithstanding any terms to the contrary in any agreement, including, without limitation, any 33
agreement between any city, town, water district, or other water supply authority and the city of 34
LC002652 - Page 14 of 28
Providence and/or the Providence water supply board (or its or their predecessors), or the provisions 1
of chapter 16 of title 39. In addition, the provisions of § 18 of chapter 1278 of the public laws of 2
Rhode Island of 1915 as amended, and any other public law that would conflict with the terms 3
hereof, are hereby amended to authorize the provision of water supply by the city of Providence 4
and the Providence water supply board (or any successor thereof) to any property or project of the 5
department and to authorize any additional connections in accordance herewith. There shall be no 6
requirement that the department demonstrate public necessity before entering into such agreements, 7
connecting to such water supplies, or receiving such water as described in this section, but the 8
department shall be subject to the other applicable provisions of chapter 15 of title 46. 9
(c) Any third party shall be entitled to rely on a writing signed by the secretary or in his or 10
her name to conclusively establish the identity of a particular property as property for all purposes 11
hereof. 12
(d) The provisions of § 42-64-13(d) shall apply to land, real estate assets and projects 13
owned by or under the supervision of, the department or lawfully approved by the secretary. 14
42-165-4. Development of new housing. 15
(a) The department shall formulate a program for the development of new housing units 16
where a portion of the housing is set aside from projects to ensure affordability. The program shall 17
provide for housing to be developed using assets, including, but not limited to, funds and real estate 18
assets, held by the land bank established pursuant to § 42-55.3-1, the housing development fund 19
and other sources available to the department. The program shall solicit applications from 20
businesses, not-for-profit entities and developers for the construction of the housing units, or the 21
department may undertake the work of development by use of its staff and contracting with 22
businesses, individuals and entities for the completion of the work. The department sponsored 23
residential development program shall have general criteria that applies to the construction of all 24
housing units and housing structures as well as specific criteria that applies based on different 25
project sizes as further described in this chapter. 26
(b) In addition to income restrictions, for projects which are administered by the 27
department for operation by the department, a public housing authority or other quasi-public entity 28
the criteria shall include caps on rental of any units to an amount based on percentage of income to 29
ensure affordability in a manner similar to the method calculation pursuant to Section 8 guidelines 30
pursuant to 42 U.S.C. § 1437f, § 3535(d) and 24 C.F.R. Part 982. 31
42-165-5. Municipal sponsored residential development projects. 32
(a) The department shall administer a municipal sponsored residential development project 33
program where the department is permitted to provide funding from the housing development fund 34
LC002652 - Page 15 of 28
and/or land from the land bank in support of the municipal residential development project which 1
is primarily built for affordable housing, workforce eligible housing or disability housing purposes 2
with appropriate dispositions and deed restrictions as provided in this chapter. 3
(b) Municipal sponsored projects. For any project sponsored by a municipality an 4
application shall be presented to the department for funding or for the provision of land through the 5
land bank. Any funding shall be made contingent on completion of the project, the issuance of 6
certificates of occupancy and disposition to owners or lessees. No less than fifty percent (50%) of 7
the housing units shall be made available for affordable housing, and no less than seventy-five 8
percent (75%) shall be made available for affordable housing and workforce eligible housing in 9
any project. A lien shall exist on any real estate which is transferred from the department and all 10
improvements made thereon which shall be forgiven upon completion of the project and disposition 11
to an eligible owner. For any municipally sponsored project the municipality shall provide at least 12
ten percent (10%) of the funds or one hundred thousand dollars ($100,000), whichever is less, for 13
the funding of the project. The municipality's portion of the funding may be satisfied by grants, 14
contributions, donations or other sources and need not be derived from the municipality's general 15
revenues or general fund. 16
42-165-6. Criteria for development projects. 17
(a) The general criteria applying to the original construction of all new housing 18
developments sponsored by the department shall include the following: 19
(1) Each housing structure shall have at least one housing unit. In structures with two (2) 20
or more housing units, the units shall be separately accessible from a common area or from the 21
outside and able to be locked by the occupants; 22
(2) Each housing structure shall be constructed using similar materials of similar type, 23
grade, size, quantity and quality and appear to be relatively uniform except as to color of siding or 24
paint and any land characteristics specific to the parcel, whether divided or subdivided or not; 25
(3) Each housing structure's internal features shall be relatively uniform as to the type, 26
grade, size, quantity and quality of materials, the number of rooms, and the size of rooms, except 27
that disability or accessible housing may have larger dimensions and a different design to 28
accommodate for the needs of the proposed occupants; 29
(4) Construction shall comply with all applicable building codes; 30
(5) Construction shall ensure sufficient utility service including, but not limited to: 31
(i) Water by private wells of acceptable water quality, flow rate and quantity or public 32
water supply access; 33
(ii) Sewer or sufficient treatment or septic facilities compliant with department of 34
LC002652 - Page 16 of 28
environmental management regulations and the law; 1
(iii) Electric; 2
(iv) Electric, natural gas connection, or oil or propane storage for each housing structure 3
with separate meters or tanks for each housing unit for the purpose of providing heat and hot water; 4
and 5
(v) Broadband or higher Internet connectivity; 6
(6) Housing structures shall be built to be energy efficient, with such further requirements 7
as determined by the secretary in consultation with the state building code commission and the 8
office of energy resources including consideration of the requirements of 42 U.S.C. § 12709; 9
(7) Located, when possible, near existing public transportation; and 10
(8) Shall be constructed in a manner where the housing structures are built to look similar 11
to other existing structures present in the community or municipality where the project is located. 12
(9) The prevailing wage requirements of chapter 13 of title 37 shall apply to all projects: 13
(i) funded with monies or in-kind contributions provided by or through the department of 14
housing; 15
(ii) Developed under a program created or administered by the department of housing; 16
(iii) Any project otherwise overseen by the department of housing. 17
(10) All projects will be subject to liens in favor of the department of housing until 18
disposition to ensure conformity with the requirements of this chapter and such regulations as are 19
promulgated by the department of housing. 20
(b) Specific criteria for housing developments sponsored by the department dependent on 21
project size are as follows: 22
(1) Developments of ten (10) or more housing structures. In all projects where there are ten 23
(10) or more housing structures the following criteria shall be required: 24
(i) At least one unit for each ten (10) structures shall be designed and constructed to be 25
fully handicapped accessible in all areas of the housing unit; 26
(ii) Fifty percent (50%) of the housing units shall be designated as affordable housing units; 27
(iii) Seventy-five percent (75%) of the housing units shall be designated as either workforce 28
eligible housing or affordable housing; 29
(iv) The remaining housing units shall be eligible to be sold at full market rates; 30
(v) An area of the development shall be reserved for recreational space sufficient in size 31
and location to be accessible by the whole development and useful to the residents therein; 32
(vi) For the development of real estate parcels equal to or larger than ten (10) acres before 33
any division or subdivision thereof, twenty-five percent (25%) of the parcel shall be held for open 34
LC002652 - Page 17 of 28
or forest space; and 1
(vii) Any other additional criteria that the department shall deem appropriate for the 2
purposes of this chapter and the program. 3
(2) Developments of five (5) to nine (9) housing structures. In all projects where there are 4
five (5) to nine (9), inclusive, housing structures: 5
(i) At least one housing unit shall be designed and constructed to be fully handicapped 6
accessible in all areas of the housing unit; 7
(ii) Thirty percent (30%) of the housing units shall be designated as affordable housing 8
units; 9
(iii) Fifty percent (50%) of the housing units shall be designated as workforce eligible 10
housing or affordable housing; 11
(iv) The remaining housing units shall be eligible to be sold at full market rates; and 12
(v) Any other additional criteria that the department shall deem appropriate for the purposes 13
of this chapter and the program. 14
(3) Developments of one to four (4) housing structures. In all projects where there are one 15
to four (4), inclusive, housing structures: 16
(i) Fifty percent (50%) of the housing units shall be designated as affordable housing units; 17
(ii) Sixty percent (60%) of the housing units shall be designated as workforce eligible 18
housing or affordable housing; 19
(iii) The remaining housing units shall be eligible to be sold at full market rates; and 20
(iv) Any other additional criteria that the department shall deem appropriate for the 21
purposes of this chapter and the program. 22
42-165-7. Authorization to develop additional criteria for projects. 23
In developing the program and any regulations, additional criteria or bylaws that the 24
department may adopt, the secretary shall seek input from the building and trade industry 25
representatives, pertinent not-for-profit entities, municipalities, other state agencies and the public. 26
42-165-8. Protecting and improving existing multifamily housing. 27
(a) The department shall administer a program for the production and ownership of new or 28
rehabilitated multifamily housing in partnership with local public housing authorities and other 29
public agencies, including, but not limited to, redevelopment agencies and economic development 30
agencies. The department may provide low interest or no-interest loans, forgivable loans, gap 31
funding, or any combination of the above to such public agencies for the construction or 32
rehabilitation of mixed-income multifamily housing. The department may purchase multifamily 33
residence units, provide low interest or no-interest loans, forgivable loans, gap funding, or any 34
LC002652 - Page 18 of 28
combination of the above to owners of multifamily units, builders, not-for-profit corporations and 1
developers to ensure that multifamily housing units are not closed or lost. 2
(b) No portion of the program shall be used for payment of rent of occupied units or 3
purchase mortgage relief for owners. In formulating policies for this program, the department shall 4
work with public housing authorities, the Rhode Island housing and mortgage finance corporation, 5
not-for-profits and other businesses, entities and individuals to coordinate resources and ensure 6
both that there is a remedy when no other remedy exists and that there is as little financial and 7
administrative duplication as possible. 8
(c) The department shall also operate the program in such a manner that it will act as a 9
clearinghouse or "one-stop-shop" for information for owners, investors, occupants and residents 10
for the protection and improvement of existing multifamily housing units. 11
42-165-9. Rehabilitation of closed and endangered multifamily housing. 12
(a) The department shall administer a program for the rehabilitation of multifamily housing 13
that is no longer rented to tenants and to rehabilitate multifamily units that are endangered of being 14
lost from the market. 15
(b) The department may purchase multifamily residence units, provide low interest or no-16
interest loans, forgivable loans, gap funding, or any combination of them to builders, not-for-profit 17
corporations and developers and owners of multifamily units to ensure that previously operational, 18
but currently closed multifamily housing units, are brought back to the market and that endangered 19
multifamily housing units are not closed or lost. Endangered multifamily units may include, but 20
not be limited to, properties in receivership, properties in bankruptcy, properties in foreclosure, 21
properties in tax sale, properties with building code violations, properties with fire code violations, 22
properties with municipal code violations, properties with zoning violations, properties with lead 23
paint hazards, properties in high market rent areas where consolidation of multiple units into a 24
single unit are threatened, units where portions of the unit have been previously and lawfully rented 25
as separate units, and other properties as determined by the department. In formulating policies for 26
this program, the department shall work with public housing authorities, the Rhode Island housing 27
and mortgage finance corporation, not-for-profits and other businesses, entities and individuals to 28
coordinate resources and ensure both that there is a remedy when no other remedy exists and that 29
there is as little financial and administrative duplication as possible. The department shall also 30
operate the program in such a manner that it will act as a clearinghouse or "one-stop-shop" for 31
information for owners, investors, occupants and residents for the protection and improvement of 32
existing multifamily housing units. 33
42-165-10. Municipal incentives for housing development. 34
LC002652 - Page 19 of 28
(a) Municipalities are encouraged to approve and sponsor affordable housing and 1
workforce eligible housing development. For municipalities that approve and sponsor such projects 2
the following adjustments to their municipal and education aid shall be made: 3
(1) For projects approved by the municipality and the department after the effective date 4
of this chapter, but before July 1, 2024, education aid shall be increased to the local education 5
authority on a per capita basis for each additional student enrolled in public schools in an amount 6
equal to the district's per pupil cost multiplied by one hundred percent (100%) for each additional 7
child living in such housing for a period of five (5) years and a bonus of one-half (1/2) of the 8
increase shall be provided to the municipality in which the student's residence in the new housing 9
unit is located for a period of five (5) years. In the event a student who moves into housing 10
developed under this chapter requires special education services, the department of education shall 11
pay for ninety percent (90%) of the student's additional services each year above the per pupil cost 12
for the period the student remains in the housing unit or remains as a student in the district, 13
whichever is less. 14
(2) For projects approved by the municipality and the department on or after July 1, 2024, 15
but before January 1, 2025, education aid shall be increased to the local education authority on a 16
per capita basis for each additional student enrolled in public schools in an amount equal to the 17
district's per pupil cost multiplied by seventy-five percent (75%) for each additional child living in 18
such housing for a period of five (5) years and a bonus of one-half (1/2) of the increase shall be 19
provided to the municipality in which the student's residence in the new housing unit is located for 20
a period of five (5) years. In the event a student who moves into housing developed under this 21
section requires special education services, the department of education shall pay for seventy-five 22
percent (75%) of the student's additional services each year above the per pupil cost for the period 23
the student remains in the housing unit or remains as a student in the district, whichever is less. 24
(3) For projects approved by the municipality and the department on or after January 1, 25
2025, but before July 1, 2025, education aid shall be increased to the local education authority on 26
a per capita basis for each additional student enrolled in public schools in an amount equal to the 27
district's per pupil cost multiplied by fifty percent (50%) for each additional child living in such 28
housing for a period of five (5) years and a bonus of one-half (1/2) of the increase shall be provided 29
to the municipality in which the student's residence in the new housing unit is located for a period 30
of five (5) years. In the event a student who moves into housing developed under this section 31
requires special education services, the department of education shall pay for fifty percent (50%) 32
of the student's additional services each year above the per pupil cost for the period the student 33
remains in the housing unit or remains as a student in the district, whichever is less. 34
LC002652 - Page 20 of 28
(4) For projects approved by the municipality and the department on or after July 1, 2025, 1
but before July 1, 2026, education aid shall be increased to the local education authority on a per 2
capita basis for each additional student enrolled in public schools in an amount equal to the district's 3
per pupil cost multiplied by twenty-five percent (25%) for each additional child living in such 4
housing for a period of three (3) years and a bonus of one-half (1/2) of the increase shall be provided 5
to the municipality in which the student's residence in the new housing unit is located for a period 6
of five (5) years. In the event a student who moves into housing developed under this section 7
requires special education services, the department of education shall pay for twenty-five percent 8
(25%) of the student's additional services each year above the per pupil cost for the period the 9
student remains in the housing unit or remains as a student in the district, whichever is less. 10
(5) For projects approved on or after July 1, 2026, no bonus municipal aid or education aid 11
shall be awarded under this section. 12
(b) The education aid calculations made in subsection (a) of this section shall be adjusted 13
based on the municipality's attainment of the goals set out in chapter 53 of title 45. When any 14
municipally approved project increases the number of affordable housing units, the projected total 15
upon completion shall be used to determine the aid in this section. The calculation of the aid 16
adjustment shall be made irrespective of whether the municipality has been deemed to have a 17
feasibility condition or exemption from percentage of affordable housing set out in chapter 53 of 18
title 45 (low and moderate income housing). Education aid increases set out in this section shall be 19
adjusted as follows: 20
(1) For projects approved prior to July 1, 2024, no adjustment shall be made. 21
(2) For projects approved on or after July 1, 2024, municipalities shall have their increase 22
reduced by the ratio of the difference between ten percent (10%) and the projected amount attained 23
after completion of all approved projects divided by the ten percent (10%) requirement. In no event 24
shall the amount be reduced below fifty percent (50%) of the increase that would have been 25
awarded had no reduction been made pursuant to this subsection. 26
(c) The general assembly shall ensure that the bonus aid provisions contained within this 27
section are appropriated for each year in which the incentives are awarded. 28
42-165-11. Enforcement of minimum affordable housing standards. 29
(a) Beginning July 1, 2026, in any city or town where the benchmark for affordable housing 30
set forth in chapter 53 of title 45 (low and moderate income housing) has not been satisfied, 31
irrespective of any determination of infeasibility or exemption from the ten percent (10%) threshold 32
for affordable housing, affordable housing planned development units to be constructed pursuant 33
to chapter 53 of title 45 shall not need approval of the municipality, notwithstanding any municipal 34
LC002652 - Page 21 of 28
law or other statute to the contrary, but instead shall be required to seek approval solely from the 1
department. 2
(b) With regard to an affordable housing development undertaken by the department or by 3
an applicant who applies to the department for project approval pursuant to subsection (a) of this 4
section, the department shall require that the project comply with municipal laws in effect in the 5
municipality where the project is located, except the project does not need to comply with any 6
comprehensive plan, any restrictions on building, any restrictions on the use or planned use 7
infrastructure or other restrictions inhibiting development and such restrictions shall not be valid 8
as against projects approved by the department. Further, the following requirements authorized as 9
standard provisions that may be imposed under a municipal zoning law or other municipal 10
ordinance shall not apply to any project approved by the department: 11
(1) The dimensions, size, lot coverage, floor area ratios, and layout of lots or development 12
areas; 13
(2) The density and intensity of use; and 14
(3) Any other requirement imposed pursuant to § 45-24-33(a)(4)(x). 15
(c) For any project proposed, approved or undertaken under this section, the provisions of 16
§ 42-165-6 shall apply and if less than five (5) units are being produced, then that at least fifty 17
percent (50%) of the units shall be reserved for affordable housing units and twenty-five (25%) 18
percent shall be reserved for workforce eligible housing units and if less than five (5) units are 19
being produced, all of the units shall be reserved for affordable housing units. 20
(d) Any appeal of an approval or denial by the department of any project under this section 21
shall be made to the superior court within thirty (30) days of the approval or denial being mailed to 22
the applicant in writing and be given priority on the trial calendar. Upon review, the superior court 23
shall determine whether the secretary or the department abused its discretion and if not, the appeal 24
shall be denied. The question on appeal shall be treated as a matter of law that may be resolved by 25
summary judgment. In the event the applicant is allowed to proceed, the applicant as a prevailing 26
party is entitled to costs, attorneys' fees and costs of litigation from any party that caused the appeal 27
to be brought to the superior court, along with an award of all interest charges incurred due to a 28
delay in the project. 29
(e) Neither a municipality nor an abutter shall have any rights to appeal a decision of the 30
department. The sole remedy of an abutter shall be an action at law for any direct damages to their 31
property or for personal injuries. 32
(f) Beginning on the effective date of this chapter: 33
(1) Whenever any municipality lacks the resources, personnel or ability to approve a 34
LC002652 - Page 22 of 28
project, provide a certificate, or make an inspection, any aspect of a project or any other matter 1
related to a project that has been approved by the department, the municipality shall notify the 2
department in writing within three (3) business days. Upon notification, the department may 3
provide personnel to undertake the inspection or work on the approval of any project it has approved 4
and such inspection or approval work shall be deemed to be an approval by the municipality. 5
(2) Any failure by a municipality to act on a request by an applicant of a project approved 6
by the department or by the department for an approval, certificate, inspection or other matter 7
within thirty (30) days shall be deemed to constitute an inability to undertake the necessary work. 8
After the expiration of thirty (30) days, the department shall make a written determination of such 9
inability and provide a copy of the determination to the municipality. After providing the notice to 10
the municipality, the department may provide the staffing to make the necessary determination that 11
is impeding the progress of the department within thirty (30) days and such an approval shall be 12
deemed to be an approval by the municipality. 13
42-165-12. Coordination with Rhode Island infrastructure bank. 14
(a) The department shall act in coordination with the Rhode Island infrastructure bank to 15
ensure the availability of resources to ensure the success of applicants and of the expansion of 16
housing units through development. 17
(b) The department is authorized to act as a clearing house for information and as a point 18
of contact for applicants and others to achieve help from the Rhode Island infrastructure bank on 19
eligible projects where funding, assistance and expertise may be available from the Rhode Island 20
infrastructure bank. 21
42-165-13. Coordination with other state agencies and quasi-publics. 22
(a) The department shall act in coordination with all other state agencies, quasi-publics, 23
and municipalities, who in turn are hereby required to assist and consult with the department to 24
ensure the availability of resources and information to ensure the success of applicants and of the 25
expansion of housing units through development. 26
(b) The department is authorized to act as a clearing house for information and as a point 27
of contact for applicants and others to achieve help from other state and local public bodies and 28
quasi-publics where funding, assistance and expertise may be available from said state and local 29
public bodies and quasi-publics. 30
(c) The department is further authorized to coordinate with federal, state and municipal 31
agencies and not-for-profit organizations to provide "wrap around services" to occupants of 32
housing units completed. 33
42-165-14. Restrictions on dispositions of projects and housing units by the 34
LC002652 - Page 23 of 28
department and/or the land bank. 1
(a) Upon approval of any project, the department shall have a lien against the property on 2
which the project is located which shall be discharged upon the completion of the project and proper 3
sale in accordance with this chapter. In the event that the project is not completed and the 4
department determines that the project cannot be completed by the party in charge of the 5
development, the department shall have the right to foreclose on the lien through a non-judicial 6
foreclosure, take a deed-in-lieu of foreclosure or otherwise resort to the remedies existing in law 7
and equity of a first-position secured creditor. 8
(b) Upon completion of a project, residential housing units may only be sold to individuals 9
who are first-time homebuyers for owner-occupied housing. 10
(c) Any housing approved by the department, whether built or operated by any public 11
agency or any nonprofit organization or by any limited equity housing cooperative or any private 12
developer, that is developed under any program administered by the department shall contain a 13
deed restriction that requires that the housing unit remain owner-occupied and not rented and that 14
any resale requires that the new purchaser shall be a first-time homebuyer in the same category the 15
seller was when the seller purchased the structure (i.e. affordable housing, workforce eligible 16
housing, or market price housing). The deed restriction shall be enforceable by the department for 17
ninety-nine (99) years from the original grant or such other period that is either agreed to by the 18
applicant who originally develops the project and the department; provided, however, that period 19
is not less than thirty (30) years from initial occupancy. Any violation of the deed restriction results 20
in a reversion of the unit to the department for sale to another person qualifying under this chapter. 21
(d) In the event of the death of an owner of a housing unit produced under a program 22
administered by the department and still subject to the deed restriction described in this section 23
then a family member or next of kin shall be entitled to inherit the housing unit as long as they 24
occupy the housing unit within nine (9) months of the date of death of the decedent irrespective of 25
their income level and thereafter, the housing unit remains owner-occupied by the heir, family 26
member or next of kin. In the event the heir, family-member or next-of-kin does not occupy the 27
housing unit within nine (9) months, the department shall purchase the housing unit at fair market 28
value and pay the money to the estate of the decedent. Upon purchase by the department, the 29
housing unit shall be resold by the department as if it were the first sale after development and the 30
unit shall remain in the same category for sale (i.e. affordable housing, workforce related housing, 31
market rate housing) as the housing unit was designated by the developer with a new deed 32
restriction period in the subsequent sale. 33
(e) Not-for-profit entities or agencies whose mission is to provide affordable, low cost, or 34
LC002652 - Page 24 of 28
workforce eligible housing for rent. Upon the sale, a deed restriction shall be in place enforceable 1
by the department that requires units to be rented solely to individuals and/or families for primary 2
housing in eligible categories (i.e. affordable housing, low cost, or workforce eligible housing). 3
Such a restriction shall be perpetual or for the life of the entity granted the property. After the entity 4
is provided notice of the violation by the department and being provided a reasonable opportunity 5
to cure, any violation of the deed restriction results in a reversion of the parcel with all 6
improvements upon which the housing structure or housing unit in violation is located. 7
42-165-15. Reporting. 8
The department shall submit to the governor, the president of the senate, and the speaker 9
of the house, within six (6) months after the close of its fiscal year, a complete and detailed report 10
setting forth: 11
(1) Its operations and accomplishments; 12
(2) Its receipts and expenditures during the fiscal year in accordance with the categories 13
and classifications established by the department for its operating and capital outlay purposes 14
including a listing of all private consultants engaged by the department on a contract basis and a 15
statement of the total amount paid to each private consultant; 16
(3) Its assets and liabilities at the end of its fiscal year including a schedule of its leases and 17
mortgages and the status of the reserve, special or other funds; 18
(4) Its strategic plan and operating plan for the current fiscal year and proposed for the next 19
fiscal year; 20
(5) A general statement of needs and opportunities relevant to its purposes; and 21
(6) A listing of all fees paid to attorneys during the fiscal year. The report required by 22
subsections (2) and (3) of this section shall be prepared by independent certified public accountants 23
in accordance with generally accepted principles of accounting. 24
42-165-16. Compliance with chapter 18 of title 34 required. 25
The owner of any housing unit, completed with assistance or resources provided by the 26
housing development fund, the land bank, or programs established under this chapter, where a 27
completed housing unit is to be rented to a qualified individual or family shall be subject to and 28
shall comply with the provisions of chapter 18 of title 34 ("residential landlord and tenant act"). 29
42-165-17. Inconsistent provisions. 30
Insofar as the provisions of this chapter are inconsistent with the provisions of any other 31
law or ordinance, general, special or local, the provisions of this chapter shall be controlling. 32
42-165-18. Construction. 33
This chapter, being necessary for the welfare of the state and its inhabitants, shall be 34
LC002652 - Page 25 of 28
liberally construed in order to effectuate its purposes. 1
42-165-19. Severability. 2
If any clause, sentence, paragraph, section, or part of this chapter shall be adjudged by any 3
court of competent jurisdiction to be invalid, that judgment shall not affect, impair, or invalidate 4
the remainder of the chapter but shall be confined in its operation to the clause, sentence, paragraph, 5
section, or part directly involved in the controversy in which that judgment shall have been 6
rendered. 7
SECTION 4. Section 42-64-11 of the General Laws in Chapter 42-64 entitled "Rhode 8
Island Commerce Corporation" is hereby amended to read as follows: 9
42-64-11. Disposition of projects. 10
(a) Notwithstanding the provisions of any other law, the Rhode Island commerce 11
corporation may sell or lease to any person, firm, partnership, or corporation, or to any local 12
redevelopment agency, or to any state or federal agency or instrumentality, or to any municipality 13
or political subdivision of the state empowered to enter into the sale or lease, any project without 14
public bidding or public sale, for consideration and upon terms as may be agreed upon between the 15
corporation and the purchaser or lessee; provided that in the case of a lease, the term shall not 16
exceed ninety-nine (99) years. The sale or lease or agreement may be consummated as entered into 17
prior to, at the date of, or subsequent to the acquisition of completion of the project. Where a 18
contract of sale or lease is entered into prior to the completion of construction of the project to be 19
conveyed or leased, the corporation may complete the project prior or subsequent to the 20
consummation of the sale or lease. 21
(b) In connection with the corporation’s disposition by sale, lease, or otherwise of any of 22
its projects, the corporation is authorized to require that the party acquiring the project, or any 23
interest therein or any right to use or occupy the project, may not sell, assign, convey, lease, 24
sublease, or otherwise dispose of, in whole or in part, its interest in the project or its right to use 25
and occupy the project without the approval, in writing, of the corporation. The corporation may 26
not unreasonably withhold that approval; and shall state the reason or reasons upon which that 27
withholding of approval is based. In determining whether to grant or withhold that approval, the 28
corporation shall consider whether the proposed disposition will further the purposes of this chapter 29
and may consider any and all other relevant factors as well. 30
(c) The provisions of subsection (b) shall not be deemed to limit in any manner the 31
corporation’s authority in connection with the disposition by sale, lease, or otherwise of any of its 32
projects or to impose those terms and conditions permitted by law with respect to those dispositions 33
as it shall determine to be desirable. 34
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(d) The corporation shall dispose, by sale, lease, transfer or other agreement, of projects on 1
or related to former Navy lands in the town of North Kingstown through the Quonset Development 2
Corporation as provided for in chapter 64.10 of this title and may dispose, by sale, lease, transfer 3
or other agreement, of other projects related to land and real estate development, regardless of 4
location in Rhode Island, through the Quonset Development Corporation as may be mutually 5
agreeable to the corporation and the Quonset Development Corporation. 6
(e) The corporation may dispose, by sale, lease, transfer or other agreement, of projects 7
related to land and real estate development, regardless of location in Rhode Island, to the housing 8
department as may be mutually agreeable to the corporation and the secretary of housing. 9
SECTION 5. Section 37-6-6 of the General Laws in Chapter 37-6 entitled "Acquisition of 10
Land" is hereby amended to read as follows: 11
37-6-6. Notice to Rhode Island economic development corporation of proposed 12
acquisition or disposal. 13
Before acquiring and before disposing of any land or other real property or any interest, 14
estate, or right therein, by conveyance, grant, lease, or license, except by license terminable by will, 15
the acquiring authority shall give written notice of its contemplated or proposed action to the Rhode 16
Island economic development corporation department of housing and afford the corporation 17
department of housing a reasonable opportunity to study and make its recommendations thereon. 18
SECTION 6. Section 45-24-28 of the General Laws in Chapter 45-24 entitled "Zoning 19
Ordinances" is hereby amended to read as follows: 20
45-24-28. Continuation of ordinances — Supercession — Relation to other statutes. 21
(a) Any zoning ordinance or amendment of the ordinance enacted after January 1, 1992, 22
shall conform to the provisions of this chapter. All lawfully adopted zoning ordinances shall be 23
brought into conformance with this chapter by December 31, 1994. Each city and town shall review 24
its zoning ordinance and make amendments or revisions that are necessary to bring it into 25
conformance with this chapter. 26
(b) All zoning ordinances adopted under authority of §§ 45-24-1 through 45-24-26 or any 27
special zoning enabling act that is in effect on June 17, 1991, shall remain in full force and effect 28
until December 31, 1994, unless earlier amended so as to conform to the provisions of this chapter, 29
except that § 45-24-37 and § 45-24-44 shall become effective on January 1, 1992. 30
(c) Former §§ 45-24-1 through 45-24-26 and all special zoning enabling acts, including, 31
but not limited to, chapter 2299 of the public laws of 1922, as amended (town of Westerly); chapter 32
1277 of the public laws of 1926, as amended (town of Narragansett); chapter 2065 of the public 33
laws of 1933, as amended (town of West Warwick); chapter 2233 of the public laws of 1935, as 34
LC002652 - Page 27 of 28
amended (town of Johnston); chapter 2079 of the public laws of 1948, as amended (town of North 1
Kingstown); chapter 3125 of the public laws of 1953, as amended (town of New Shoreham); 2
chapter 101 of the public laws of 1973, as amended (town of South Kingstown); are repealed 3
effective December 31, 1994. All provisions of zoning ordinances adopted under authority of the 4
provisions of former §§ 45-24-1 through 45-24-26 or of any special act are repealed and are null 5
and void as of December 31, 1994, unless amended so as to conform to the provisions of this 6
chapter. 7
(d) Chapter 24.1 of this title, entitled “Historical Area Zoning”, and chapter 3 of title 1, 8
entitled “Airport Zoning”, are not superseded by this chapter; provided, that any appeal to the 9
superior court pursuant to chapter 24.1 of this title, entitled “Historical Area Zoning”, or pursuant 10
to chapter 3 of title 1, entitled “Airport Zoning”, is taken in the manner provided in § 45-24-69. 11
(e) Nothing in this chapter shall be construed to limit the authority of agencies of state 12
government to perform any regulatory responsibilities. 13
(f) Nothing in this chapter shall be construed to supersede or interfere with development 14
undertaken by the housing department or its programs in accordance with chapters 55.2, 55.3 and/or 15
165 of title 42. 16
SECTION 7. This act shall take effect upon passage. 17
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- HOUSING DEVELOPMENT
FUND
***
This act would create funding of affordable housing programs within the department of 1
housing. The act would also create a land bank program as well as residential development 2
programs for the construction of low-income housing units by the department and the cities and 3
towns. 4
This act would take effect upon passage. 5
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