Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0866 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0866
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7	7	LC002652
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO STATE AFFAIRS AND GOVERNMENT -- HOUSING DEVELOPMENT
16	16	FUND
17	17	Introduced By: Senators Kallman, Lombardo, Acosta, Cano, Euer, Burke, DiPalma,
18	18	Gallo, Quezada, and Mack
19	19	Date Introduced: March 30, 2023
20	20	Referred To: Senate Finance
21	21
22	22
23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND 1
25	25	GOVERNMENT" is hereby amended by adding thereto the following chapter: 2
26	26	CHAPTER 55.2 3
27	27	HOUSING DEVELOPMENT FUND 4
28	28	42-55.2-1. Short title. 5
29	29	This chapter shall be known and may be cited as the "Housing Development Fund." 6
30	30	42-55.2-2. Definitions. 7
31	31	As used in this chapter: 8
32	32	(1) "Affordable housing unit" means a unit that may be rented or sold to any individual 9
33	33	classified as "very low-income," "low-income" or "moderate-income" as those terms are defined in 10
34	34	federal law measured at the time of the purchase or for the duration of a rental tenancy of an eligible 11
35	35	unit. 12
36	36	(2) "Applicant" means a developer or occupant applying for a grant of money or land, or 13
37	37	loan or conditional loan under this chapter. 14
38	38	(3) "Business" means an entity registered with the secretary of state including, but not 15
39	39	limited to, a corporation as defined in § 44-11-1, a nonprofit corporation, benefit corporation, 16
40	40	limited liability company, and/or an unregistered business formed as a partnership, association or 17
41	41	sole proprietorship. 18
42	42
43	43
44	44	LC002652 - Page 2 of 28
45	45	(4) "Capital investment" in a development or development project means costs or expenses 1
46	46	by a business or any affiliate of the business incurred after application for: real estate asset 2
47	47	acquisition, site preparation, construction, repair, renovation, improvement, equipping, or 3
48	48	furnishing on real property or of a building, structure, facility, or improvement to real property. 4
49	49	(5) "Department" means the department of housing established pursuant to § 42-64.34-1. 5
50	50	(6) "Developer" means a person, firm, corporation, partnership, association, political 6
51	51	subdivision, public housing authority or other entity, whether for-profit or not-for-profit, that 7
52	52	proposes to divide, divides, or causes to be divided real property into a subdivision or proposes to 8
53	53	build, or builds a building or buildings or otherwise improves land or existing structures, which 9
54	54	division, building, or improvement of land qualifies for benefits under this chapter. 10
55	55	(7) "Fund" means the housing development fund created pursuant to this chapter. 11
56	56	(8) "Market rate housing unit" means a unit that may be sold to any individual earning any 12
57	57	amount without any income restriction and is sold at fair market value. 13
58	58	(9) "Occupant" means a resident as a tenant, owner, or joint venture partner, occupying 14
59	59	space pursuant to a lease or other occupancy agreement within any structure or building developed 15
60	60	on land which is subject to assistance being provided from the fund. 16
61	61	(10) "Owner-occupant" is an "occupant" who resides in a building or structure and is the 17
62	62	title holder of the parcel upon which the building or structure is situated. 18
63	63	(11) "Project cost" means the costs incurred in connection with a project by an applicant 19
64	64	until the issuance of a permanent certificate of occupancy, or until such other time specified by the 20
65	65	secretary of housing. 21
66	66	(12) "Project financing gap" means: the part of the total project cost that remains to be 22
67	67	financed after all other sources of capital have been accounted for (such sources will include, but 23
68	68	not be limited to, developer-contributed capital), which shall be defined through rules and 24
69	69	regulations promulgated by the department of housing. 25
70	70	(13) "Real estate assets" shall be defined to include, but not be limited to: land, buildings, 26
71	71	fixtures, improvements, easements, rights-of-way, and all other rights of ownership, possession 27
72	72	and/or use associated with real property. 28
73	73	(14) "Workforce related housing unit" means a unit that may be sold to any individual 29
74	74	earning above the threshold for an affordable housing unit, but below the maximum threshold set 30
75	75	pursuant to 26 U.S.C. § 143 as measured at the time of the purchase of an eligible unit or as may 31
76	76	otherwise be defined by federal law. 32
77	77	42-55.2-3. Establishment of the fund -- Uses -- Composition. 33
78	78	(a) The housing development fund (the "fund") is hereby established under the jurisdiction 34
79	79
80	80
81	81	LC002652 - Page 3 of 28
82	82	of and shall be administered by the department of housing in order to promote the development, 1
83	83	redevelopment and update of housing in order to make housing more affordable and more available 2
84	84	in the state. 3
85	85	(b) The uses of the fund include: 4
86	86	(1) Financing real estate asset acquisition by the department for the land bank described in 5
87	87	chapter 55.3 of title 42; 6
88	88	(2) Filling project financing gaps for residential and multifamily real estate projects eligible 7
89	89	under the criteria created pursuant to § 42-165-6; 8
90	90	(3) Financing public infrastructure and public facilities to support or enhance residential 9
91	91	development projects on land owned by the land bank or projects qualifying for development under 10
92	92	§ 42-165-6 including transportation, utility services such as water, sewer, electrical, and Internet 11
93	93	communications, parks, greenways, playgrounds and recreational spaces, and community facilities. 12
94	94	(4) Hiring of per diem, project based, part-time, or seasonal staff as determined to be 13
95	95	necessary by the secretary of housing to assist municipalities in the planning and/inspection of 14
96	96	potential projects and projects that are provided assistance from the fund. 15
97	97	(5) Provide support for voluntary "wraparound services" for those occupying housing units 16
98	98	completed with assistance from the fund to include, but not be limited to: 17
99	99	(i) Coordination with other agencies to ensure social worker assignment; 18
100	100	(ii) Assignment to an accountable care organization; 19
101	101	(iii) Financial literacy training; 20
102	102	(iv) Assistance in obtaining access to mental, social and behavioral health supports and 21
103	103	treatments; 22
104	104	(v) Substance abuse recovery; and 23
105	105	(vi) Other supports for residents to maintain their ability to fulfill the requirements of 24
106	106	tenancy as determined by the department. 25
107	107	(c) The fund shall consist of: 26
108	108	(1) Money appropriated from the American Recovery Program Act funds allocated to the 27
109	109	state; 28
110	110	(2) Money appropriated in the state budget to the fund; 29
111	111	(3) Money made available to the fund through federal programs or private contributions; 30
112	112	(4) Repayments of principal and interest from loans made from the fund; 31
113	113	(5) Proceeds from the sale, disposition, lease, or rental of collateral related to financial 32
114	114	assistance provided under this chapter; 33
115	115	(6) Application or other fees paid to the fund to process requests for financial assistance; 34
116	116
117	117
118	118	LC002652 - Page 4 of 28
119	119	(7) Recovery made by the department or on the sale of an appreciated asset in which the 1
120	120	department has acquired an interest under this chapter; and 2
121	121	(8) Any other money made available to the fund. 3
122	122	(d) No assets in the fund shall be subject to attachment, execution, lien or other legal 4
123	123	process, judicial or administrative, in law or in equity, except when a particular asset within the 5
124	124	fund is pledged as security for any loan agreement and in such case the particular asset shall be 6
125	125	subject to lien, attachment or execution for satisfaction of the loan only and no other assets in the 7
126	126	fund shall be taken, reached or applied. 8
127	127	42-55.2-4. Assistance -- Powers of the department -- Reports. 9
128	128	(a) An applicant seeking assistance under this chapter shall submit a request to the 10
129	129	department pursuant to an application procedure prescribed by the secretary of housing. 11
130	130	(b) Any approval for funding under this chapter may only be granted under the authority 12
131	131	of the secretary of housing. 13
132	132	(c) The secretary may set the terms and conditions for assistance under this chapter by 14
133	133	regulation, program design, request for proposals or other predetermined method for which 15
134	134	applicants may apply. 16
135	135	(d) The secretary shall publish a report on the fund at the end of each fiscal year. The report 17
136	136	shall contain information on the commitment, disbursement, and use of funds allocated under the 18
137	137	fund. The report shall also, to the extent practicable, track the impact of projects that have been 19
138	138	completed using the fund including, but not limited to, information on housing availability and 20
139	139	economic data. The report is due no later than sixty (60) days after the end of the fiscal year, and 21
140	140	shall be provided to the speaker of the house of representatives, the president of the senate and the 22
141	141	secretary of commerce. 23
142	142	42-55.2-5. Severability. 24
143	143	If any clause, sentence, paragraph, section or part of this chapter shall be judged by any 25
144	144	court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate 26
145	145	the remainder thereof, but it shall be confined in its operation of the clause, sentence, paragraph, 27
146	146	section or part directly involved in the controversy in which that judgment shall have been rendered. 28
147	147	Notwithstanding the foregoing, in the event that any term or provision is judged by any court of 29
148	148	competent jurisdiction to be invalid, the general assembly shall promptly act to address such clause, 30
149	149	section, sentence, paragraph, or part directly involved in which the subject judgment shall have 31
150	150	been rendered in order to provide, as near as practicable, the result originally intended by such 32
151	151	clause, section, sentence, paragraph or part without running contrary to such judgment. 33
152	152	SECTION 2. Title 42 of the General Laws entitled "STATE AFFAIRS AND 34
153	153
154	154
155	155	LC002652 - Page 5 of 28
156	156	GOVERNMENT" is hereby amended by adding thereto the following chapter: 1
157	157	CHAPTER 55.3 2
158	158	DEPARTMENT OF HOUSING LAND BANK PROGRAM 3
159	159	42-55.3-1. Establishment of program. 4
160	160	There is hereby established a program to be operated by the department of housing called 5
161	161	the "housing land bank." 6
162	162	42-55.3-2. Establishment of account. 7
163	163	The department of housing ("department") shall establish an account into which title to real 8
164	164	estate assets shall be deposited and held for use in the housing programs described in chapters 55.2 9
165	165	and 165 of this title. 10
166	166	42-55.3-3. Acquisition of property and deposit into the land bank. 11
167	167	(a) The department may acquire real property or interests in real property by gift, devise, 12
168	168	transfer, exchange, foreclosure, purchase, or otherwise on terms and conditions and in a manner 13
169	169	the department considers proper and deposit such property into the housing land bank ("land 14
170	170	bank"). 15
171	171	(b) The department may use its own funds or funds in the housing development fund 16
172	172	created pursuant to chapter 55.2 of this title to acquire real property by purchase contracts, lease 17
173	173	purchase agreements, installment sales contracts, and/or land contracts, and may accept transfers 18
174	174	from municipalities, other quasi-public entities, nonprofit entities or the state upon such terms and 19
175	175	conditions as agreed to by the department and the municipality, entity or state. 20
176	176	(c) Notwithstanding any other law to the contrary, any municipality may freely transfer to 21
177	177	the land bank real property and interests in real property of the municipality on such terms and 22
178	178	conditions and according to such procedures as determined jointly by the municipality and the 23
179	179	department. 24
180	180	(d) The acquisition of real property by the department pursuant to this section, from entities 25
181	181	other than political subdivisions, shall be limited to real property that is tax delinquent, tax 26
182	182	foreclosed, subject to municipal receivership, vacant or abandoned, or unimproved land; provided, 27
183	183	however, that the land bank shall have authority to enter into agreements to purchase other real 28
184	184	property consistent with an approved development plan in accordance with chapter 165 of this title. 29
185	185	42-55.3-4. Public inspection of records. 30
186	186	(a) The department shall maintain and make available for public review and inspection a 31
187	187	complete inventory of all property received by the department for deposit into the land bank. Such 32
188	188	inventory shall include: the location of the parcel; the purchase price, if any, for each parcel 33
189	189	received; the current value assigned to the property for purposes of real property taxation; the 34
190	190
191	191
192	192	LC002652 - Page 6 of 28
193	193	amount, if any, owed to the locality for real property taxation or as a payment in lieu of taxes; the 1
194	194	identity of the transferor; and any conditions or restrictions applicable to the property. 2
195	195	(b) All parcels received by the department and deposited into the land bank shall be listed 3
196	196	on the received inventory established pursuant to subsection (a) of this section within one week of 4
197	197	acquisition and shall remain in such inventory for one week prior to disposition. Such inventory 5
198	198	shall be listed on a website for the department accessible to the public. 6
199	199	42-55.3-5. Departmental authority to reject proposed transfers of property. 7
200	200	The department is hereby allowed to reject any proposed transfer of any real estate asset 8
201	201	for any reason including, but not limited to, polluted, contaminated or problematic parcels which 9
202	202	would, in the judgment of the department, create a harm to the finances, operations or interests for 10
203	203	the land bank, the department or the state. 11
204	204	42-55.3-6. Property in the land bank exempt from legal process. 12
205	205	(a) Any land deposited into the land bank shall not be subject to attachment, execution or 13
206	206	any judicial or administrative process during the period it is held by the department, unless that 14
207	207	parcel or asset is pledged as security for any loan agreement made for funding improvements related 15
208	208	to that parcel in which case such process shall be available against that asset only, and no liens, 16
209	209	fines, penalties, assessments or other charges shall be made against the property, the land bank, the 17
210	210	department or the state for any reason during the period it is held in the land bank. 18
211	211	(b) In the event there is a division in the freehold interest where only a portion of the rights 19
212	212	related to the property is located in the land bank, the remainder may be made subject to legal 20
213	213	process as long as such process does not act to divest the land bank of any of its attributes of 21
214	214	ownership or ability to develop the property. 22
215	215	(c) In the event of a divided ownership where a portion of the fee or property interest is 23
216	216	held by the land bank or any other conflict in ownership which may arise under this section, the 24
217	217	department may petition the superior court for partition in which after the required notice and 25
218	218	service of process is completed upon confirmatory motion, the land bank shall be awarded and 26
219	219	receive the whole fee simple interest by way of an interim order or a final judgment. An interim 27
220	220	order or a final judgment constitutes a recordable order which shall be considered binding in the 28
221	221	chain of title and any of the remainder portion claimed by another owner or creditor shall be subject 29
222	222	to owelty under the law or in equity based on the value of the interest transferred to the land bank. 30
223	223	Neither the department nor any land subject to such a partition action shall be restrained nor 31
224	224	enjoined and no equitable order shall issue to prevent the development of the property by the 32
225	225	department or its applicant or assignee. 33
226	226	42-55.3-7. Required review of surplus land by state and municipal entities. 34
227	227
228	228
229	229	LC002652 - Page 7 of 28
230	230	(a) Conduct of required review. All state and municipal public bodies and quasi-public 1
231	231	entities shall conduct a review of real estate assets owned by or under the control of the body or 2
232	232	quasi-public entity and determine which real estate assets are not under current use or planned use 3
233	233	by December 31, 2023. 4
234	234	(b) Real estate asset planning. Each state and municipal public body and quasi-public entity 5
235	235	shall create a long-term plan for those real estate assets not in current use. Such a plan shall provide 6
236	236	an estimated date when each real estate asset will be employed for use by the agency, what the 7
237	237	proposed use will be, and if known, the estimated costs to develop the land for the proposed use. 8
238	238	(c) A list of all real estate assets which are not in use shall be submitted to the department 9
239	239	along with a list of those parcels for which there are plans to put said parcel to use within ten (10) 10
240	240	years and evidence of what that use will be. 11
241	241	(d) The department will evaluate each parcel submitted to the department, along with the 12
242	242	proposed use for each parcel so denominated by each public body, for the appropriateness for 13
243	243	development into residential housing units. A copy of the list shall also be provided to the state 14
244	244	properties committee. 15
245	245	(e) Notice to the department. If the department determines that a particular parcel listed on 16
246	246	any list required in subsections (b) and (c) of this section is determined to be appropriate for 17
247	247	residential real estate development, the department shall provide notice to the state or municipal 18
248	248	public body or quasi-public agency that is in control of or owns the parcel. 19
249	249	(f) Required donation or sale to land bank. Upon a determination by the department that a 20
250	250	particular real estate asset listed pursuant to subsection (d) of this section is suitable for residential 21
251	251	real estate development and the department has determined that it desires to acquire the real estate 22
252	252	asset for the land bank, if said parcel is not listed as being planned for use within the next ten (10) 23
253	253	years, the state or municipal public body or quasi-public agency, as applicable, shall be required, 24
254	254	upon notice by the department, to enter into a negotiation with the department for the transfer of 25
255	255	the parcel to the land bank. If the department and the state or municipal public body or quasi-public 26
256	256	agency cannot agree on a transfer value, then establishment of a value through binding arbitration 27
257	257	by a panel comprising of three (3) licensed real estate appraisers licensed to appraise the particular 28
258	258	type of property at issue shall be required with one appointed by the department, one by the owner 29
259	259	of the parcel and one chosen by the two (2) appraisers. The middle appraisal shall be considered 30
260	260	the final purchase price subject to acceptance by the department. If the value is such that the 31
261	261	department desires to continue with the purchase, then the state or municipal public body or quasi-32
262	262	public agency shall be required to consummate the sale. 33
263	263	(g) Parcels exempt from the required donation or sale. The following real estate assets shall 34
264	264
265	265
266	266	LC002652 - Page 8 of 28
267	267	be exempt from the required sale procedure in subsection (f) of this section: 1
268	268	(1) All real estate assets under the control of the Quonset development corporation within 2
269	269	the Quonset business park; 3
270	270	(2) All real estate assets under the control of the Rhode Island airport corporation; 4
271	271	(3) All real estate assets under the control of the department of transportation held for 5
272	272	proposed roads, highways, railways or other transportation infrastructure; 6
273	273	(4) All real estate assets under the control of the Rhode Island public transit authority; 7
274	274	(5) All real estate assets in the immediate vicinity of the state house and state offices in the 8
275	275	capitol district as bounded westerly by Interstate 95, southerly by Memorial Boulevard, northerly 9
276	276	by Orms Street and easterly (from north to south) by Charles Street then by Mill Street and then by 10
277	277	the Moshassuck River; 11
278	278	(6) All real estate assets connected with judicial branch activities; 12
279	279	(7) All real estate assets controlled by the department of corrections; 13
280	280	(8) All real estate assets controlled by the university of Rhode Island; 14
281	281	(9) All real estate assets controlled by Rhode Island college that are located in Providence; 15
282	282	(10) All real estate assets located in Cranston at the John O. Pastore Center or in its 16
283	283	immediate vicinity; 17
284	284	(11) All real estate assets controlled by the office of veterans' services in the vicinity of the 18
285	285	Rhode Island veterans' cemetery and the Rhode Island veterans' home; 19
286	286	(12) All real estate assets related to Eleanor Slater Hospital including, but not limited to, 20
287	287	facilities in Cranston and Burrillville; 21
288	288	(13) All assets located in a flood zone; 22
289	289	(14) All assets located in a wetland designated by the department of environmental 23
290	290	management; 24
291	291	(15) All assets located within the jurisdiction of the coastal resources management council; 25
292	292	(16) All real estate assets which are subject to any farm, forest or open space restriction 26
293	293	against building through the department of environmental management, any agricultural 27
294	294	conservancy trust, or any not-for-profit entity or trust; 28
295	295	(17) All state parks, conservation areas, management areas, beaches, fishing areas and 29
296	296	other sites subject to the management and/or control of the department of environmental 30
297	297	management; 31
298	298	(18) All parcels designated by the director of the department of emergency management as 32
299	299	necessary for emergency preparation purposes; 33
300	300	(19) All parcels abutting or adjacent to hospitals and healthcare facilities that are reserved 34
301	301
302	302
303	303	LC002652 - Page 9 of 28
304	304	for future expansion of the healthcare or hospital facility; 1
305	305	(20) Real estate assets subject to the control or oversight of the I-195 redevelopment 2
306	306	commission; 3
307	307	(21) Real estate assets owned, controlled or overseen by the Rhode Island historical 4
308	308	preservation & heritage commission; and 5
309	309	(22) Any property being operated as a farm, for recreational purposes, open space, or as a 6
310	310	water supply or for the provision of utilities or serves as a buffer to any watershed, water supply or 7
311	311	utility. 8
312	312	(h) Donation or sale prior to disposition. Prior to any disposition of any real estate asset by 9
313	313	any state or municipal public body or quasi-public agency through sale, long-term lease of more 10
314	314	than five (5) years, surplus of property, auction, donation or other method, notice shall be provided 11
315	315	to the department along with the opportunity to timely evaluate the property and decide whether to 12
316	316	exercise an option to purchase or decline to purchase the parcel which shall not be less than forty-13
317	317	five (45) days. Notice of the proposed auction date, sale date or date of the disposition shall be 14
318	318	provided to the department. Unless a public auction or sale is required pursuant to other law or 15
319	319	judicial order, the department shall have the right of first refusal for purchase of the real estate asset 16
320	320	by the land bank at: 17
321	321	(1) The advertised price, or, if none, then; 18
322	322	(2) At the price offered by an alternative buyer, or, if none, then; 19
323	323	(3) At the lowest price acceptable to the selling entity if acceptable to the department. The 20
324	324	department shall inform the selling agency of its decision to exercise its right of first refusal prior 21
325	325	to the auction date, sale date or disposition date contained in the original notice. 22
326	326	SECTION 3. Title 42 of the General Laws entitled "STATE AFFAIRS AND 23
327	327	GOVERNMENT" is hereby amended by adding thereto the following chapter: 24
328	328	CHAPTER 165 25
329	329	DEPARTMENT OF HOUSING RESIDENTIAL DEV ELOPMENT PROGRAMS 26
330	330	42-165-1. Definitions. 27
331	331	(a) As used in this chapter, words and terms, shall have the meaning set forth in § 42-55.2-28
332	332	2 unless this chapter provides a different meaning or unless the context indicates a different 29
333	333	meaning or intent. 30
334	334	(b) Within this chapter, the following words and terms shall have the following meanings 31
335	335	unless the context indicates a different meaning or intent: 32
336	336	(1) "Department" means the department of housing established pursuant to § 42-64.34-1. 33
337	337	(2) "Foreclosing governmental unit" means any municipality, water service, sewer provider 34
338	338
339	339
340	340	LC002652 - Page 10 of 28
341	341	with the power to sell a property through chapter 9 of title 44 or with the power to foreclose as well 1
342	342	as the "department." 2
343	343	(3) "Housing structures" means a building or structure containing one or more "housing 3
344	344	units." 4
345	345	(4) "Housing units" means a building or a portion of a building which is conveyed or rented 5
346	346	to a single family for their occupancy. Such units shall be separate from all other units in a structure 6
347	347	and contain separate rooms for each of the following purposes: at least one bathroom with a shower 7
348	348	and/or tub unit, one kitchen with a refrigerator, kitchen sink and cooking appliances, a living or 8
349	349	common family space, at least two (2) bedrooms, and a closed space for utilities and mechanicals 9
350	350	servicing the unit. 10
351	351	(5) "Land bank" means housing land bank established in § 42-55.3-1. 11
352	352	(6) "Secretary" means the secretary of housing appointed pursuant to § 42-64.34-1. 12
353	353	(7) "State and municipal public bodies" means, the state, any city, any town and any 13
354	354	executive, legislative, judicial, regulatory, or administrative body of the state, or any political 14
355	355	subdivision thereof; including, but not limited to: any department, division, agency, commission, 15
356	356	board, office, bureau, authority; any school, fire, or water district, or other agency of Rhode Island 16
357	357	state or local government. 17
358	358	42-165-2. Creation of programs. 18
359	359	The department of housing is hereby authorized to create and establish programs for 19
360	360	promoting and encouraging the preservation, expansion and sound development of new and 20
361	361	existing residential housing units thereby increasing the housing security of the citizens of this state 21
362	362	in safe and affordable housing which shall also promote the economic development of the state by 22
363	363	ensuring safety for its workforce and families. 23
364	364	42-165-3. General powers. 24
365	365	(a) Except to the extent inconsistent with any specific provision of this chapter, the 25
366	366	department shall have and may exercise all general powers set forth in chapters 55.2, 55.3 and 26
367	367	64.34 of this title necessary or convenient to effect its purposes, which shall include the powers to 27
368	368	acquire and to dispose of real property, subject to the provisions of this chapter, without the 28
369	369	necessity of obtaining the approval of the state properties committee or otherwise complying with 29
370	370	the provisions of title 37 and to dispose of projects as provided for in § 42-64-11. 30
371	371	(b) The department is further authorized: 31
372	372	(1) To ask, demand, recover, collect, receive, hold, and possess all sums of money, debts, 32
373	373	dues, goods, wares, merchandise, chattels, effects, bonds, notes, checks, drafts, accounts, deposits, 33
374	374	safe deposit boxes, interests, dividends, stock certificates, certificates of deposit, insurance benefits 34
375	375
376	376
377	377	LC002652 - Page 11 of 28
378	378	and proceeds, documents of title, personal and real property, tangible and intangible property, and 1
379	379	property rights, liquidated or unliquidated, that now are, or hereafter, shall be, or become, due, 2
380	380	owing, or payable in respect to the property, and upon receipt thereof, or of any part thereof, to 3
381	381	make, sign, execute, and deliver such receipts, releases, or other discharges for the same as the 4
382	382	secretary shall deem proper and deliver the amounts required to the housing development fund 5
383	383	created by chapter 55.2 of this title. 6
384	384	(2) To lease, purchase, exchange and acquire, and to bargain, contract, and agree for the 7
385	385	lease, purchase, exchange, and acquisition of, and to take, receive, possess, and manage any real or 8
386	386	personal property related in any way to the property, tangible and intangible, or any interest therein. 9
387	387	(3) Subject to the right of any tenant under chapter 18 of title 34, to enter into and upon all 10
388	388	and each of the real properties constituting a part of, or related in any way, to the property, and to 11
389	389	let, manage, and improve the real property or any part thereof, and to repair or otherwise improve 12
390	390	or alter, and to insure any buildings or structures thereon. 13
391	391	(4) Subject to the provisions of this chapter, to market and sell, either at public or private 14
392	392	sale, or exchange any part or parts of the real or personal properties, including indebtedness or 15
393	393	evidence thereof, constituting a part of or related in any way to the property, including sales on 16
394	394	credit, and for that purpose to execute and receive all promissory notes, bonds, mortgages, deeds 17
395	395	of trust, security agreements, and other instruments that may be necessary or proper, and to bargain, 18
396	396	contract, and agree with respect to the sale or exchange of such properties; and to execute and 19
397	397	deliver good and sufficient deeds, bills of sale, assignments, or other instruments or endorsements 20
398	398	for the conveyance or transfer of the same; and to give receipts for all or any part of the purchase 21
399	399	price or other consideration. 22
400	400	(5) To sign, endorse, execute, acknowledge, deliver, receive, and possess such applications, 23
401	401	contracts, agreements, options, covenants, deeds, conveyances, trust deeds, mortgagees deeds, 24
402	402	security agreements, bills of sale, leases, mortgages, assignments, insurance policies, bills of lading, 25
403	403	warehouse receipts, documents of title, bills, bonds, debentures, checks, drafts, bills of exchange, 26
404	404	notes, stock certificates, proxies, warrants, commercial paper, receipts, withdrawal receipts, and 27
405	405	deposit instruments relating to accounts or deposits in, or certificates of deposit of, banks, savings 28
406	406	and loan or other institutions or associations, proofs of loss, evidences of debts, releases, and 29
407	407	satisfactions of mortgages, judgments, liens, security agreements, and other debts and obligations, 30
408	408	and other instruments in writing of whatever kind and nature as may be necessary or proper in the 31
409	409	exercise of the rights and powers herein granted. 32
410	410	(6) To enter into subordination agreements, inter-creditor agreements, reinstatement 33
411	411	agreements, "stand still" and "stand-by" agreements, modification agreements, forbearance 34
412	412
413	413
414	414	LC002652 - Page 12 of 28
415	415	agreements, and other contracts having the effect of subordinating, modifying, renewing, 1
416	416	restructuring or otherwise altering the rights, obligations, or liabilities of the department or its 2
417	417	predecessors, under or with respect to any indebtedness, property, or other assets constituting or 3
418	418	securing any property. 4
419	419	(7) To make demands, give notices of default, notices of intention to accelerate, notices of 5
420	420	acceleration, or such other notices as the department deems necessary or appropriate, and to take 6
421	421	other actions and exercise other rights that may be taken under the terms of any loan agreements, 7
422	422	security agreements, guaranties, or other documents or agreements evidencing, or otherwise 8
423	423	relating to, the property, including foreclosure, lease, sale, taking possession of, realization upon, 9
424	424	or any other disposition of any property or any collateral therefor or guarantee thereof. 10
425	425	(8) To exercise any powers and any duties previously vested in the commerce corporation 11
426	426	or now vested in the department as a partner, joint venture, participant, or other joint-interest holder 12
427	427	with respect to any property, or to concur (or not) with persons jointly interested with the 13
428	428	department in any property. 14
429	429	(9) With respect to the property: 15
430	430	(i) To sue on, or otherwise prosecute, any claim or cause of action, or commence or seek 16
431	431	any legal, equitable, or administrative or other remedy in any legal, administrative, arbitration, 17
432	432	mediation, or other proceeding whatsoever (including, non-judicial repossessions and foreclosures 18
433	433	or similar actions to recover collateral); 19
434	434	(ii) To defend, or otherwise participate for, or in the name of, the department in any legal, 20
435	435	administrative, arbitration, mediation, or other proceedings; 21
436	436	(iii) To process, determine, or adjudge any claim or cause of action for, or in the name of, 22
437	437	the department; 23
438	438	(iv) To compromise, settle, discharge or resolve, or make, execute, or deliver any 24
439	439	endorsements, acquittances, releases, receipts, or other discharges of any claim, cause of action, 25
440	440	determination, judgment, or other proceeding for, or in the name of, the department; and 26
441	441	(v) To prepare, execute, and file ad valorem, franchise and other tax returns, protests and 27
442	442	suits against taxing authorities, and to prepare, execute, and file other governmental or quasi-28
443	443	governmental reports, declarations, applications, requests and documents in connection with any 29
444	444	property, and to pay taxes in connection with the property as the department deems necessary or 30
445	445	appropriate, or as otherwise required by law. 31
446	446	(10) To own, hold, improve, operate, manage, and regulate utilities for properties subject 32
447	447	to its control or ownership and to establish rates, fees, and charges, to adopt regulations, and to 33
448	448	impose penalties for any services or utilities it provides, or causes to have available, and to have 34
449	449
450	450
451	451	LC002652 - Page 13 of 28
452	452	functions and exercise powers as necessary and appropriate as the successor to the commerce 1
453	453	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
454	454	through 42-64-9.10, inclusive or under its own authority as granted by law. 3
455	455	(11) Subject to the provisions of this chapter, to enter into agreements with any city, town, 4
456	456	district, or public corporation with regard to application and/or administration of zoning or other 5
457	457	land use ordinances, codes, plans, or regulations, and cities, towns, districts, and public 6
458	458	corporations are hereby authorized and empowered, notwithstanding any other law to the contrary, 7
459	459	to enter into such agreements with the department and to do all things necessary to carry out their 8
460	460	obligations under such agreements. 9
461	461	(12) To be exempt from taxation for projects which have not been completed, to pay 10
462	462	twenty-five percent (25%) of the real estate taxes owed to a municipality for projects which have 11
463	463	been completed and where a housing unit is in the possession of the department, and to enter into 12
464	464	agreements for payments in lieu of taxes in the same manner as provided for in § 42-64-20. Any 13
465	465	payments in lieu of taxes for housing completed under this chapter with the assistance of funds or 14
466	466	property provided pursuant to chapter 55.2 and/or 55.3 of this title shall be exempt from the 15
467	467	calculation of the maximum tax rate and/or levy under § 44-5-2. 16
468	468	(13) To purchase and obtain water supply and water service from any city, town, water 17
469	469	district, or other water supply authority. In particular, the department is authorized to: 18
470	470	(i) Enter into agreements or contracts with any city, town, water district, or other water 19
471	471	supply authority to purchase, acquire, and receive water supply and water service. 20
472	472	(ii) Enter into cooperative agreements with cities, towns, counties, water districts, or other 21
473	473	water supply authorities for the interconnection of facilities or for any other lawful corporate 22
474	474	purposes necessary or desirable to effect the purposes of this chapter. 23
475	475	(iii) Connect the water supply system on any property or project controlled, approved, 24
476	476	owned or overseen by the department with any city, town, water district, or other water supply 25
477	477	authority that receives or has a connection with the city of Providence and/or the Providence water 26
478	478	supply board (or any successor thereof) and purchase, connect to, receive, and enter into agreements 27
479	479	to receive water supply from any city, town, water district, or other water supply authority 28
480	480	regardless of the origin of such water supply. The city of Providence and the Providence water 29
481	481	supply board (and any successor thereof) are authorized and directed to supply water to property, 30
482	482	projects and location as directed by the department either directly or via connections between the 31
483	483	property or project and any city, town, water district, or other water supply authority, 32
484	484	notwithstanding any terms to the contrary in any agreement, including, without limitation, any 33
485	485	agreement between any city, town, water district, or other water supply authority and the city of 34
486	486
487	487
488	488	LC002652 - Page 14 of 28
489	489	Providence and/or the Providence water supply board (or its or their predecessors), or the provisions 1
490	490	of chapter 16 of title 39. In addition, the provisions of § 18 of chapter 1278 of the public laws of 2
491	491	Rhode Island of 1915 as amended, and any other public law that would conflict with the terms 3
492	492	hereof, are hereby amended to authorize the provision of water supply by the city of Providence 4
493	493	and the Providence water supply board (or any successor thereof) to any property or project of the 5
494	494	department and to authorize any additional connections in accordance herewith. There shall be no 6
495	495	requirement that the department demonstrate public necessity before entering into such agreements, 7
496	496	connecting to such water supplies, or receiving such water as described in this section, but the 8
497	497	department shall be subject to the other applicable provisions of chapter 15 of title 46. 9
498	498	(c) Any third party shall be entitled to rely on a writing signed by the secretary or in his or 10
499	499	her name to conclusively establish the identity of a particular property as property for all purposes 11
500	500	hereof. 12
501	501	(d) The provisions of § 42-64-13(d) shall apply to land, real estate assets and projects 13
502	502	owned by or under the supervision of, the department or lawfully approved by the secretary. 14
503	503	42-165-4. Development of new housing. 15
504	504	(a) The department shall formulate a program for the development of new housing units 16
505	505	where a portion of the housing is set aside from projects to ensure affordability. The program shall 17
506	506	provide for housing to be developed using assets, including, but not limited to, funds and real estate 18
507	507	assets, held by the land bank established pursuant to § 42-55.3-1, the housing development fund 19
508	508	and other sources available to the department. The program shall solicit applications from 20
509	509	businesses, not-for-profit entities and developers for the construction of the housing units, or the 21
510	510	department may undertake the work of development by use of its staff and contracting with 22
511	511	businesses, individuals and entities for the completion of the work. The department sponsored 23
512	512	residential development program shall have general criteria that applies to the construction of all 24
513	513	housing units and housing structures as well as specific criteria that applies based on different 25
514	514	project sizes as further described in this chapter. 26
515	515	(b) In addition to income restrictions, for projects which are administered by the 27
516	516	department for operation by the department, a public housing authority or other quasi-public entity 28
517	517	the criteria shall include caps on rental of any units to an amount based on percentage of income to 29
518	518	ensure affordability in a manner similar to the method calculation pursuant to Section 8 guidelines 30
519	519	pursuant to 42 U.S.C. § 1437f, § 3535(d) and 24 C.F.R. Part 982. 31
520	520	42-165-5. Municipal sponsored residential development projects. 32
521	521	(a) The department shall administer a municipal sponsored residential development project 33
522	522	program where the department is permitted to provide funding from the housing development fund 34
523	523
524	524
525	525	LC002652 - Page 15 of 28
526	526	and/or land from the land bank in support of the municipal residential development project which 1
527	527	is primarily built for affordable housing, workforce eligible housing or disability housing purposes 2
528	528	with appropriate dispositions and deed restrictions as provided in this chapter. 3
529	529	(b) Municipal sponsored projects. For any project sponsored by a municipality an 4
530	530	application shall be presented to the department for funding or for the provision of land through the 5
531	531	land bank. Any funding shall be made contingent on completion of the project, the issuance of 6
532	532	certificates of occupancy and disposition to owners or lessees. No less than fifty percent (50%) of 7
533	533	the housing units shall be made available for affordable housing, and no less than seventy-five 8
534	534	percent (75%) shall be made available for affordable housing and workforce eligible housing in 9
535	535	any project. A lien shall exist on any real estate which is transferred from the department and all 10
536	536	improvements made thereon which shall be forgiven upon completion of the project and disposition 11
537	537	to an eligible owner. For any municipally sponsored project the municipality shall provide at least 12
538	538	ten percent (10%) of the funds or one hundred thousand dollars ($100,000), whichever is less, for 13
539	539	the funding of the project. The municipality's portion of the funding may be satisfied by grants, 14
540	540	contributions, donations or other sources and need not be derived from the municipality's general 15
541	541	revenues or general fund. 16
542	542	42-165-6. Criteria for development projects. 17
543	543	(a) The general criteria applying to the original construction of all new housing 18
544	544	developments sponsored by the department shall include the following: 19
545	545	(1) Each housing structure shall have at least one housing unit. In structures with two (2) 20
546	546	or more housing units, the units shall be separately accessible from a common area or from the 21
547	547	outside and able to be locked by the occupants; 22
548	548	(2) Each housing structure shall be constructed using similar materials of similar type, 23
549	549	grade, size, quantity and quality and appear to be relatively uniform except as to color of siding or 24
550	550	paint and any land characteristics specific to the parcel, whether divided or subdivided or not; 25
551	551	(3) Each housing structure's internal features shall be relatively uniform as to the type, 26
552	552	grade, size, quantity and quality of materials, the number of rooms, and the size of rooms, except 27
553	553	that disability or accessible housing may have larger dimensions and a different design to 28
554	554	accommodate for the needs of the proposed occupants; 29
555	555	(4) Construction shall comply with all applicable building codes; 30
556	556	(5) Construction shall ensure sufficient utility service including, but not limited to: 31
557	557	(i) Water by private wells of acceptable water quality, flow rate and quantity or public 32
558	558	water supply access; 33
559	559	(ii) Sewer or sufficient treatment or septic facilities compliant with department of 34
560	560
561	561
562	562	LC002652 - Page 16 of 28
563	563	environmental management regulations and the law; 1
564	564	(iii) Electric; 2
565	565	(iv) Electric, natural gas connection, or oil or propane storage for each housing structure 3
566	566	with separate meters or tanks for each housing unit for the purpose of providing heat and hot water; 4
567	567	and 5
568	568	(v) Broadband or higher Internet connectivity; 6
569	569	(6) Housing structures shall be built to be energy efficient, with such further requirements 7
570	570	as determined by the secretary in consultation with the state building code commission and the 8
571	571	office of energy resources including consideration of the requirements of 42 U.S.C. § 12709; 9
572	572	(7) Located, when possible, near existing public transportation; and 10
573	573	(8) Shall be constructed in a manner where the housing structures are built to look similar 11
574	574	to other existing structures present in the community or municipality where the project is located. 12
575	575	(9) The prevailing wage requirements of chapter 13 of title 37 shall apply to all projects: 13
576	576	(i) funded with monies or in-kind contributions provided by or through the department of 14
577	577	housing; 15
578	578	(ii) Developed under a program created or administered by the department of housing; 16
579	579	(iii) Any project otherwise overseen by the department of housing. 17
580	580	(10) All projects will be subject to liens in favor of the department of housing until 18
581	581	disposition to ensure conformity with the requirements of this chapter and such regulations as are 19
582	582	promulgated by the department of housing. 20
583	583	(b) Specific criteria for housing developments sponsored by the department dependent on 21
584	584	project size are as follows: 22
585	585	(1) Developments of ten (10) or more housing structures. In all projects where there are ten 23
586	586	(10) or more housing structures the following criteria shall be required: 24
587	587	(i) At least one unit for each ten (10) structures shall be designed and constructed to be 25
588	588	fully handicapped accessible in all areas of the housing unit; 26
589	589	(ii) Fifty percent (50%) of the housing units shall be designated as affordable housing units; 27
590	590	(iii) Seventy-five percent (75%) of the housing units shall be designated as either workforce 28
591	591	eligible housing or affordable housing; 29
592	592	(iv) The remaining housing units shall be eligible to be sold at full market rates; 30
593	593	(v) An area of the development shall be reserved for recreational space sufficient in size 31
594	594	and location to be accessible by the whole development and useful to the residents therein; 32
595	595	(vi) For the development of real estate parcels equal to or larger than ten (10) acres before 33
596	596	any division or subdivision thereof, twenty-five percent (25%) of the parcel shall be held for open 34
597	597
598	598
599	599	LC002652 - Page 17 of 28
600	600	or forest space; and 1
601	601	(vii) Any other additional criteria that the department shall deem appropriate for the 2
602	602	purposes of this chapter and the program. 3
603	603	(2) Developments of five (5) to nine (9) housing structures. In all projects where there are 4
604	604	five (5) to nine (9), inclusive, housing structures: 5
605	605	(i) At least one housing unit shall be designed and constructed to be fully handicapped 6
606	606	accessible in all areas of the housing unit; 7
607	607	(ii) Thirty percent (30%) of the housing units shall be designated as affordable housing 8
608	608	units; 9
609	609	(iii) Fifty percent (50%) of the housing units shall be designated as workforce eligible 10
610	610	housing or affordable housing; 11
611	611	(iv) The remaining housing units shall be eligible to be sold at full market rates; and 12
612	612	(v) Any other additional criteria that the department shall deem appropriate for the purposes 13
613	613	of this chapter and the program. 14
614	614	(3) Developments of one to four (4) housing structures. In all projects where there are one 15
615	615	to four (4), inclusive, housing structures: 16
616	616	(i) Fifty percent (50%) of the housing units shall be designated as affordable housing units; 17
617	617	(ii) Sixty percent (60%) of the housing units shall be designated as workforce eligible 18
618	618	housing or affordable housing; 19
619	619	(iii) The remaining housing units shall be eligible to be sold at full market rates; and 20
620	620	(iv) Any other additional criteria that the department shall deem appropriate for the 21
621	621	purposes of this chapter and the program. 22
622	622	42-165-7. Authorization to develop additional criteria for projects. 23
623	623	In developing the program and any regulations, additional criteria or bylaws that the 24
624	624	department may adopt, the secretary shall seek input from the building and trade industry 25
625	625	representatives, pertinent not-for-profit entities, municipalities, other state agencies and the public. 26
626	626	42-165-8. Protecting and improving existing multifamily housing. 27
627	627	(a) The department shall administer a program for the production and ownership of new or 28
628	628	rehabilitated multifamily housing in partnership with local public housing authorities and other 29
629	629	public agencies, including, but not limited to, redevelopment agencies and economic development 30
630	630	agencies. The department may provide low interest or no-interest loans, forgivable loans, gap 31
631	631	funding, or any combination of the above to such public agencies for the construction or 32
632	632	rehabilitation of mixed-income multifamily housing. The department may purchase multifamily 33
633	633	residence units, provide low interest or no-interest loans, forgivable loans, gap funding, or any 34
634	634
635	635
636	636	LC002652 - Page 18 of 28
637	637	combination of the above to owners of multifamily units, builders, not-for-profit corporations and 1
638	638	developers to ensure that multifamily housing units are not closed or lost. 2
639	639	(b) No portion of the program shall be used for payment of rent of occupied units or 3
640	640	purchase mortgage relief for owners. In formulating policies for this program, the department shall 4
641	641	work with public housing authorities, the Rhode Island housing and mortgage finance corporation, 5
642	642	not-for-profits and other businesses, entities and individuals to coordinate resources and ensure 6
643	643	both that there is a remedy when no other remedy exists and that there is as little financial and 7
644	644	administrative duplication as possible. 8
645	645	(c) The department shall also operate the program in such a manner that it will act as a 9
646	646	clearinghouse or "one-stop-shop" for information for owners, investors, occupants and residents 10
647	647	for the protection and improvement of existing multifamily housing units. 11
648	648	42-165-9. Rehabilitation of closed and endangered multifamily housing. 12
649	649	(a) The department shall administer a program for the rehabilitation of multifamily housing 13
650	650	that is no longer rented to tenants and to rehabilitate multifamily units that are endangered of being 14
651	651	lost from the market. 15
652	652	(b) The department may purchase multifamily residence units, provide low interest or no-16
653	653	interest loans, forgivable loans, gap funding, or any combination of them to builders, not-for-profit 17
654	654	corporations and developers and owners of multifamily units to ensure that previously operational, 18
655	655	but currently closed multifamily housing units, are brought back to the market and that endangered 19
656	656	multifamily housing units are not closed or lost. Endangered multifamily units may include, but 20
657	657	not be limited to, properties in receivership, properties in bankruptcy, properties in foreclosure, 21
658	658	properties in tax sale, properties with building code violations, properties with fire code violations, 22
659	659	properties with municipal code violations, properties with zoning violations, properties with lead 23
660	660	paint hazards, properties in high market rent areas where consolidation of multiple units into a 24
661	661	single unit are threatened, units where portions of the unit have been previously and lawfully rented 25
662	662	as separate units, and other properties as determined by the department. In formulating policies for 26
663	663	this program, the department shall work with public housing authorities, the Rhode Island housing 27
664	664	and mortgage finance corporation, not-for-profits and other businesses, entities and individuals to 28
665	665	coordinate resources and ensure both that there is a remedy when no other remedy exists and that 29
666	666	there is as little financial and administrative duplication as possible. The department shall also 30
667	667	operate the program in such a manner that it will act as a clearinghouse or "one-stop-shop" for 31
668	668	information for owners, investors, occupants and residents for the protection and improvement of 32
669	669	existing multifamily housing units. 33
670	670	42-165-10. Municipal incentives for housing development. 34
671	671
672	672
673	673	LC002652 - Page 19 of 28
674	674	(a) Municipalities are encouraged to approve and sponsor affordable housing and 1
675	675	workforce eligible housing development. For municipalities that approve and sponsor such projects 2
676	676	the following adjustments to their municipal and education aid shall be made: 3
677	677	(1) For projects approved by the municipality and the department after the effective date 4
678	678	of this chapter, but before July 1, 2024, education aid shall be increased to the local education 5
679	679	authority on a per capita basis for each additional student enrolled in public schools in an amount 6
680	680	equal to the district's per pupil cost multiplied by one hundred percent (100%) for each additional 7
681	681	child living in such housing for a period of five (5) years and a bonus of one-half (1/2) of the 8
682	682	increase shall be provided to the municipality in which the student's residence in the new housing 9
683	683	unit is located for a period of five (5) years. In the event a student who moves into housing 10
684	684	developed under this chapter requires special education services, the department of education shall 11
685	685	pay for ninety percent (90%) of the student's additional services each year above the per pupil cost 12
686	686	for the period the student remains in the housing unit or remains as a student in the district, 13
687	687	whichever is less. 14
688	688	(2) For projects approved by the municipality and the department on or after July 1, 2024, 15
689	689	but before January 1, 2025, education aid shall be increased to the local education authority on a 16
690	690	per capita basis for each additional student enrolled in public schools in an amount equal to the 17
691	691	district's per pupil cost multiplied by seventy-five percent (75%) for each additional child living in 18
692	692	such housing for a period of five (5) years and a bonus of one-half (1/2) of the increase shall be 19
693	693	provided to the municipality in which the student's residence in the new housing unit is located for 20
694	694	a period of five (5) years. In the event a student who moves into housing developed under this 21
695	695	section requires special education services, the department of education shall pay for seventy-five 22
696	696	percent (75%) of the student's additional services each year above the per pupil cost for the period 23
697	697	the student remains in the housing unit or remains as a student in the district, whichever is less. 24
698	698	(3) For projects approved by the municipality and the department on or after January 1, 25
699	699	2025, but before July 1, 2025, education aid shall be increased to the local education authority on 26
700	700	a per capita basis for each additional student enrolled in public schools in an amount equal to the 27
701	701	district's per pupil cost multiplied by fifty percent (50%) for each additional child living in such 28
702	702	housing for a period of five (5) years and a bonus of one-half (1/2) of the increase shall be provided 29
703	703	to the municipality in which the student's residence in the new housing unit is located for a period 30
704	704	of five (5) years. In the event a student who moves into housing developed under this section 31
705	705	requires special education services, the department of education shall pay for fifty percent (50%) 32
706	706	of the student's additional services each year above the per pupil cost for the period the student 33
707	707	remains in the housing unit or remains as a student in the district, whichever is less. 34
708	708
709	709
710	710	LC002652 - Page 20 of 28
711	711	(4) For projects approved by the municipality and the department on or after July 1, 2025, 1
712	712	but before July 1, 2026, education aid shall be increased to the local education authority on a per 2
713	713	capita basis for each additional student enrolled in public schools in an amount equal to the district's 3
714	714	per pupil cost multiplied by twenty-five percent (25%) for each additional child living in such 4
715	715	housing for a period of three (3) years and a bonus of one-half (1/2) of the increase shall be provided 5
716	716	to the municipality in which the student's residence in the new housing unit is located for a period 6
717	717	of five (5) years. In the event a student who moves into housing developed under this section 7
718	718	requires special education services, the department of education shall pay for twenty-five percent 8
719	719	(25%) of the student's additional services each year above the per pupil cost for the period the 9
720	720	student remains in the housing unit or remains as a student in the district, whichever is less. 10
721	721	(5) For projects approved on or after July 1, 2026, no bonus municipal aid or education aid 11
722	722	shall be awarded under this section. 12
723	723	(b) The education aid calculations made in subsection (a) of this section shall be adjusted 13
724	724	based on the municipality's attainment of the goals set out in chapter 53 of title 45. When any 14
725	725	municipally approved project increases the number of affordable housing units, the projected total 15
726	726	upon completion shall be used to determine the aid in this section. The calculation of the aid 16
727	727	adjustment shall be made irrespective of whether the municipality has been deemed to have a 17
728	728	feasibility condition or exemption from percentage of affordable housing set out in chapter 53 of 18
729	729	title 45 (low and moderate income housing). Education aid increases set out in this section shall be 19
730	730	adjusted as follows: 20
731	731	(1) For projects approved prior to July 1, 2024, no adjustment shall be made. 21
732	732	(2) For projects approved on or after July 1, 2024, municipalities shall have their increase 22
733	733	reduced by the ratio of the difference between ten percent (10%) and the projected amount attained 23
734	734	after completion of all approved projects divided by the ten percent (10%) requirement. In no event 24
735	735	shall the amount be reduced below fifty percent (50%) of the increase that would have been 25
736	736	awarded had no reduction been made pursuant to this subsection. 26
737	737	(c) The general assembly shall ensure that the bonus aid provisions contained within this 27
738	738	section are appropriated for each year in which the incentives are awarded. 28
739	739	42-165-11. Enforcement of minimum affordable housing standards. 29
740	740	(a) Beginning July 1, 2026, in any city or town where the benchmark for affordable housing 30
741	741	set forth in chapter 53 of title 45 (low and moderate income housing) has not been satisfied, 31
742	742	irrespective of any determination of infeasibility or exemption from the ten percent (10%) threshold 32
743	743	for affordable housing, affordable housing planned development units to be constructed pursuant 33
744	744	to chapter 53 of title 45 shall not need approval of the municipality, notwithstanding any municipal 34
745	745
746	746
747	747	LC002652 - Page 21 of 28
748	748	law or other statute to the contrary, but instead shall be required to seek approval solely from the 1
749	749	department. 2
750	750	(b) With regard to an affordable housing development undertaken by the department or by 3
751	751	an applicant who applies to the department for project approval pursuant to subsection (a) of this 4
752	752	section, the department shall require that the project comply with municipal laws in effect in the 5
753	753	municipality where the project is located, except the project does not need to comply with any 6
754	754	comprehensive plan, any restrictions on building, any restrictions on the use or planned use 7
755	755	infrastructure or other restrictions inhibiting development and such restrictions shall not be valid 8
756	756	as against projects approved by the department. Further, the following requirements authorized as 9
757	757	standard provisions that may be imposed under a municipal zoning law or other municipal 10
758	758	ordinance shall not apply to any project approved by the department: 11
759	759	(1) The dimensions, size, lot coverage, floor area ratios, and layout of lots or development 12
760	760	areas; 13
761	761	(2) The density and intensity of use; and 14
762	762	(3) Any other requirement imposed pursuant to § 45-24-33(a)(4)(x). 15
763	763	(c) For any project proposed, approved or undertaken under this section, the provisions of 16
764	764	§ 42-165-6 shall apply and if less than five (5) units are being produced, then that at least fifty 17
765	765	percent (50%) of the units shall be reserved for affordable housing units and twenty-five (25%) 18
766	766	percent shall be reserved for workforce eligible housing units and if less than five (5) units are 19
767	767	being produced, all of the units shall be reserved for affordable housing units. 20
768	768	(d) Any appeal of an approval or denial by the department of any project under this section 21
769	769	shall be made to the superior court within thirty (30) days of the approval or denial being mailed to 22
770	770	the applicant in writing and be given priority on the trial calendar. Upon review, the superior court 23
771	771	shall determine whether the secretary or the department abused its discretion and if not, the appeal 24
772	772	shall be denied. The question on appeal shall be treated as a matter of law that may be resolved by 25
773	773	summary judgment. In the event the applicant is allowed to proceed, the applicant as a prevailing 26
774	774	party is entitled to costs, attorneys' fees and costs of litigation from any party that caused the appeal 27
775	775	to be brought to the superior court, along with an award of all interest charges incurred due to a 28
776	776	delay in the project. 29
777	777	(e) Neither a municipality nor an abutter shall have any rights to appeal a decision of the 30
778	778	department. The sole remedy of an abutter shall be an action at law for any direct damages to their 31
779	779	property or for personal injuries. 32
780	780	(f) Beginning on the effective date of this chapter: 33
781	781	(1) Whenever any municipality lacks the resources, personnel or ability to approve a 34
782	782
783	783
784	784	LC002652 - Page 22 of 28
785	785	project, provide a certificate, or make an inspection, any aspect of a project or any other matter 1
786	786	related to a project that has been approved by the department, the municipality shall notify the 2
787	787	department in writing within three (3) business days. Upon notification, the department may 3
788	788	provide personnel to undertake the inspection or work on the approval of any project it has approved 4
789	789	and such inspection or approval work shall be deemed to be an approval by the municipality. 5
790	790	(2) Any failure by a municipality to act on a request by an applicant of a project approved 6
791	791	by the department or by the department for an approval, certificate, inspection or other matter 7
792	792	within thirty (30) days shall be deemed to constitute an inability to undertake the necessary work. 8
793	793	After the expiration of thirty (30) days, the department shall make a written determination of such 9
794	794	inability and provide a copy of the determination to the municipality. After providing the notice to 10
795	795	the municipality, the department may provide the staffing to make the necessary determination that 11
796	796	is impeding the progress of the department within thirty (30) days and such an approval shall be 12
797	797	deemed to be an approval by the municipality. 13
798	798	42-165-12. Coordination with Rhode Island infrastructure bank. 14
799	799	(a) The department shall act in coordination with the Rhode Island infrastructure bank to 15
800	800	ensure the availability of resources to ensure the success of applicants and of the expansion of 16
801	801	housing units through development. 17
802	802	(b) The department is authorized to act as a clearing house for information and as a point 18
803	803	of contact for applicants and others to achieve help from the Rhode Island infrastructure bank on 19
804	804	eligible projects where funding, assistance and expertise may be available from the Rhode Island 20
805	805	infrastructure bank. 21
806	806	42-165-13. Coordination with other state agencies and quasi-publics. 22
807	807	(a) The department shall act in coordination with all other state agencies, quasi-publics, 23
808	808	and municipalities, who in turn are hereby required to assist and consult with the department to 24
809	809	ensure the availability of resources and information to ensure the success of applicants and of the 25
810	810	expansion of housing units through development. 26
811	811	(b) The department is authorized to act as a clearing house for information and as a point 27
812	812	of contact for applicants and others to achieve help from other state and local public bodies and 28
813	813	quasi-publics where funding, assistance and expertise may be available from said state and local 29
814	814	public bodies and quasi-publics. 30
815	815	(c) The department is further authorized to coordinate with federal, state and municipal 31
816	816	agencies and not-for-profit organizations to provide "wrap around services" to occupants of 32
817	817	housing units completed. 33
818	818	42-165-14. Restrictions on dispositions of projects and housing units by the 34
819	819
820	820
821	821	LC002652 - Page 23 of 28
822	822	department and/or the land bank. 1
823	823	(a) Upon approval of any project, the department shall have a lien against the property on 2
824	824	which the project is located which shall be discharged upon the completion of the project and proper 3
825	825	sale in accordance with this chapter. In the event that the project is not completed and the 4
826	826	department determines that the project cannot be completed by the party in charge of the 5
827	827	development, the department shall have the right to foreclose on the lien through a non-judicial 6
828	828	foreclosure, take a deed-in-lieu of foreclosure or otherwise resort to the remedies existing in law 7
829	829	and equity of a first-position secured creditor. 8
830	830	(b) Upon completion of a project, residential housing units may only be sold to individuals 9
831	831	who are first-time homebuyers for owner-occupied housing. 10
832	832	(c) Any housing approved by the department, whether built or operated by any public 11
833	833	agency or any nonprofit organization or by any limited equity housing cooperative or any private 12
834	834	developer, that is developed under any program administered by the department shall contain a 13
835	835	deed restriction that requires that the housing unit remain owner-occupied and not rented and that 14
836	836	any resale requires that the new purchaser shall be a first-time homebuyer in the same category the 15
837	837	seller was when the seller purchased the structure (i.e. affordable housing, workforce eligible 16
838	838	housing, or market price housing). The deed restriction shall be enforceable by the department for 17
839	839	ninety-nine (99) years from the original grant or such other period that is either agreed to by the 18
840	840	applicant who originally develops the project and the department; provided, however, that period 19
841	841	is not less than thirty (30) years from initial occupancy. Any violation of the deed restriction results 20
842	842	in a reversion of the unit to the department for sale to another person qualifying under this chapter. 21
843	843	(d) In the event of the death of an owner of a housing unit produced under a program 22
844	844	administered by the department and still subject to the deed restriction described in this section 23
845	845	then a family member or next of kin shall be entitled to inherit the housing unit as long as they 24
846	846	occupy the housing unit within nine (9) months of the date of death of the decedent irrespective of 25
847	847	their income level and thereafter, the housing unit remains owner-occupied by the heir, family 26
848	848	member or next of kin. In the event the heir, family-member or next-of-kin does not occupy the 27
849	849	housing unit within nine (9) months, the department shall purchase the housing unit at fair market 28
850	850	value and pay the money to the estate of the decedent. Upon purchase by the department, the 29
851	851	housing unit shall be resold by the department as if it were the first sale after development and the 30
852	852	unit shall remain in the same category for sale (i.e. affordable housing, workforce related housing, 31
853	853	market rate housing) as the housing unit was designated by the developer with a new deed 32
854	854	restriction period in the subsequent sale. 33
855	855	(e) Not-for-profit entities or agencies whose mission is to provide affordable, low cost, or 34
856	856
857	857
858	858	LC002652 - Page 24 of 28
859	859	workforce eligible housing for rent. Upon the sale, a deed restriction shall be in place enforceable 1
860	860	by the department that requires units to be rented solely to individuals and/or families for primary 2
861	861	housing in eligible categories (i.e. affordable housing, low cost, or workforce eligible housing). 3
862	862	Such a restriction shall be perpetual or for the life of the entity granted the property. After the entity 4
863	863	is provided notice of the violation by the department and being provided a reasonable opportunity 5
864	864	to cure, any violation of the deed restriction results in a reversion of the parcel with all 6
865	865	improvements upon which the housing structure or housing unit in violation is located. 7
866	866	42-165-15. Reporting. 8
867	867	The department shall submit to the governor, the president of the senate, and the speaker 9
868	868	of the house, within six (6) months after the close of its fiscal year, a complete and detailed report 10
869	869	setting forth: 11
870	870	(1) Its operations and accomplishments; 12
871	871	(2) Its receipts and expenditures during the fiscal year in accordance with the categories 13
872	872	and classifications established by the department for its operating and capital outlay purposes 14
873	873	including a listing of all private consultants engaged by the department on a contract basis and a 15
874	874	statement of the total amount paid to each private consultant; 16
875	875	(3) Its assets and liabilities at the end of its fiscal year including a schedule of its leases and 17
876	876	mortgages and the status of the reserve, special or other funds; 18
877	877	(4) Its strategic plan and operating plan for the current fiscal year and proposed for the next 19
878	878	fiscal year; 20
879	879	(5) A general statement of needs and opportunities relevant to its purposes; and 21
880	880	(6) A listing of all fees paid to attorneys during the fiscal year. The report required by 22
881	881	subsections (2) and (3) of this section shall be prepared by independent certified public accountants 23
882	882	in accordance with generally accepted principles of accounting. 24
883	883	42-165-16. Compliance with chapter 18 of title 34 required. 25
884	884	The owner of any housing unit, completed with assistance or resources provided by the 26
885	885	housing development fund, the land bank, or programs established under this chapter, where a 27
886	886	completed housing unit is to be rented to a qualified individual or family shall be subject to and 28
887	887	shall comply with the provisions of chapter 18 of title 34 ("residential landlord and tenant act"). 29
888	888	42-165-17. Inconsistent provisions. 30
889	889	Insofar as the provisions of this chapter are inconsistent with the provisions of any other 31
890	890	law or ordinance, general, special or local, the provisions of this chapter shall be controlling. 32
891	891	42-165-18. Construction. 33
892	892	This chapter, being necessary for the welfare of the state and its inhabitants, shall be 34
893	893
894	894
895	895	LC002652 - Page 25 of 28
896	896	liberally construed in order to effectuate its purposes. 1
897	897	42-165-19. Severability. 2
898	898	If any clause, sentence, paragraph, section, or part of this chapter shall be adjudged by any 3
899	899	court of competent jurisdiction to be invalid, that judgment shall not affect, impair, or invalidate 4
900	900	the remainder of the chapter but shall be confined in its operation to the clause, sentence, paragraph, 5
901	901	section, or part directly involved in the controversy in which that judgment shall have been 6
902	902	rendered. 7
903	903	SECTION 4. Section 42-64-11 of the General Laws in Chapter 42-64 entitled "Rhode 8
904	904	Island Commerce Corporation" is hereby amended to read as follows: 9
905	905	42-64-11. Disposition of projects. 10
906	906	(a) Notwithstanding the provisions of any other law, the Rhode Island commerce 11
907	907	corporation may sell or lease to any person, firm, partnership, or corporation, or to any local 12
908	908	redevelopment agency, or to any state or federal agency or instrumentality, or to any municipality 13
909	909	or political subdivision of the state empowered to enter into the sale or lease, any project without 14
910	910	public bidding or public sale, for consideration and upon terms as may be agreed upon between the 15
911	911	corporation and the purchaser or lessee; provided that in the case of a lease, the term shall not 16
912	912	exceed ninety-nine (99) years. The sale or lease or agreement may be consummated as entered into 17
913	913	prior to, at the date of, or subsequent to the acquisition of completion of the project. Where a 18
914	914	contract of sale or lease is entered into prior to the completion of construction of the project to be 19
915	915	conveyed or leased, the corporation may complete the project prior or subsequent to the 20
916	916	consummation of the sale or lease. 21
917	917	(b) In connection with the corporation’s disposition by sale, lease, or otherwise of any of 22
918	918	its projects, the corporation is authorized to require that the party acquiring the project, or any 23
919	919	interest therein or any right to use or occupy the project, may not sell, assign, convey, lease, 24
920	920	sublease, or otherwise dispose of, in whole or in part, its interest in the project or its right to use 25
921	921	and occupy the project without the approval, in writing, of the corporation. The corporation may 26
922	922	not unreasonably withhold that approval; and shall state the reason or reasons upon which that 27
923	923	withholding of approval is based. In determining whether to grant or withhold that approval, the 28
924	924	corporation shall consider whether the proposed disposition will further the purposes of this chapter 29
925	925	and may consider any and all other relevant factors as well. 30
926	926	(c) The provisions of subsection (b) shall not be deemed to limit in any manner the 31
927	927	corporation’s authority in connection with the disposition by sale, lease, or otherwise of any of its 32
928	928	projects or to impose those terms and conditions permitted by law with respect to those dispositions 33
929	929	as it shall determine to be desirable. 34
930	930
931	931
932	932	LC002652 - Page 26 of 28
933	933	(d) The corporation shall dispose, by sale, lease, transfer or other agreement, of projects on 1
934	934	or related to former Navy lands in the town of North Kingstown through the Quonset Development 2
935	935	Corporation as provided for in chapter 64.10 of this title and may dispose, by sale, lease, transfer 3
936	936	or other agreement, of other projects related to land and real estate development, regardless of 4
937	937	location in Rhode Island, through the Quonset Development Corporation as may be mutually 5
938	938	agreeable to the corporation and the Quonset Development Corporation. 6
939	939	(e) The corporation may dispose, by sale, lease, transfer or other agreement, of projects 7
940	940	related to land and real estate development, regardless of location in Rhode Island, to the housing 8
941	941	department as may be mutually agreeable to the corporation and the secretary of housing. 9
942	942	SECTION 5. Section 37-6-6 of the General Laws in Chapter 37-6 entitled "Acquisition of 10
943	943	Land" is hereby amended to read as follows: 11
944	944	37-6-6. Notice to Rhode Island economic development corporation of proposed 12
945	945	acquisition or disposal. 13
946	946	Before acquiring and before disposing of any land or other real property or any interest, 14
947	947	estate, or right therein, by conveyance, grant, lease, or license, except by license terminable by will, 15
948	948	the acquiring authority shall give written notice of its contemplated or proposed action to the Rhode 16
949	949	Island economic development corporation department of housing and afford the corporation 17
950	950	department of housing a reasonable opportunity to study and make its recommendations thereon. 18
951	951	SECTION 6. Section 45-24-28 of the General Laws in Chapter 45-24 entitled "Zoning 19
952	952	Ordinances" is hereby amended to read as follows: 20
953	953	45-24-28. Continuation of ordinances — Supercession — Relation to other statutes. 21
954	954	(a) Any zoning ordinance or amendment of the ordinance enacted after January 1, 1992, 22
955	955	shall conform to the provisions of this chapter. All lawfully adopted zoning ordinances shall be 23
956	956	brought into conformance with this chapter by December 31, 1994. Each city and town shall review 24
957	957	its zoning ordinance and make amendments or revisions that are necessary to bring it into 25
958	958	conformance with this chapter. 26
959	959	(b) All zoning ordinances adopted under authority of §§ 45-24-1 through 45-24-26 or any 27
960	960	special zoning enabling act that is in effect on June 17, 1991, shall remain in full force and effect 28
961	961	until December 31, 1994, unless earlier amended so as to conform to the provisions of this chapter, 29
962	962	except that § 45-24-37 and § 45-24-44 shall become effective on January 1, 1992. 30
963	963	(c) Former §§ 45-24-1 through 45-24-26 and all special zoning enabling acts, including, 31
964	964	but not limited to, chapter 2299 of the public laws of 1922, as amended (town of Westerly); chapter 32
965	965	1277 of the public laws of 1926, as amended (town of Narragansett); chapter 2065 of the public 33
966	966	laws of 1933, as amended (town of West Warwick); chapter 2233 of the public laws of 1935, as 34
967	967
968	968
969	969	LC002652 - Page 27 of 28
970	970	amended (town of Johnston); chapter 2079 of the public laws of 1948, as amended (town of North 1
971	971	Kingstown); chapter 3125 of the public laws of 1953, as amended (town of New Shoreham); 2
972	972	chapter 101 of the public laws of 1973, as amended (town of South Kingstown); are repealed 3
973	973	effective December 31, 1994. All provisions of zoning ordinances adopted under authority of the 4
974	974	provisions of former §§ 45-24-1 through 45-24-26 or of any special act are repealed and are null 5
975	975	and void as of December 31, 1994, unless amended so as to conform to the provisions of this 6
976	976	chapter. 7
977	977	(d) Chapter 24.1 of this title, entitled “Historical Area Zoning”, and chapter 3 of title 1, 8
978	978	entitled “Airport Zoning”, are not superseded by this chapter; provided, that any appeal to the 9
979	979	superior court pursuant to chapter 24.1 of this title, entitled “Historical Area Zoning”, or pursuant 10
980	980	to chapter 3 of title 1, entitled “Airport Zoning”, is taken in the manner provided in § 45-24-69. 11
981	981	(e) Nothing in this chapter shall be construed to limit the authority of agencies of state 12
982	982	government to perform any regulatory responsibilities. 13
983	983	(f) Nothing in this chapter shall be construed to supersede or interfere with development 14
984	984	undertaken by the housing department or its programs in accordance with chapters 55.2, 55.3 and/or 15
985	985	165 of title 42. 16
986	986	SECTION 7. This act shall take effect upon passage. 17
987	987	========
988	988	LC002652
989	989	========
990	990
991	991
992	992	LC002652 - Page 28 of 28
993	993	EXPLANATION
994	994	BY THE LEGISLATIVE COUNCIL
995	995	OF
996	996	A N A C T
997	997	RELATING TO STATE AFFAIRS AND GOVERNMENT -- HOUSING DEVELOPMENT
998	998	FUND
999	999	***
1000	1000	This act would create funding of affordable housing programs within the department of 1
1001	1001	housing. The act would also create a land bank program as well as residential development 2
1002	1002	programs for the construction of low-income housing units by the department and the cities and 3
1003	1003	towns. 4
1004	1004	This act would take effect upon passage. 5
1005	1005	========
1006	1006	LC002652
1007	1007	========
1008	1008