Defines who is eligible to bid at tax sales; Authorizes Rhode Island housing and mortgage finance corporation to use excess funds collected under ยง 34-27-3.2 to purchase at tax sale owner-occupied residences.
Impact
One significant aspect of S2889 is its provision allowing the Rhode Island Housing and Mortgage Finance Corporation to exercise a right of first refusal to purchase owner-occupied residential properties that are subject to tax sales. By doing so, the bill seeks to prevent the foreclosure of homes on which taxes have not been paid, thereby aiming to help families maintain their residency and avoid displacement. This could impact state laws governing tax lien sales and may prompt a reassessment of how the state supports low-income families facing tax issues.
Summary
Bill S2889 proposes amendments to existing taxation laws in Rhode Island pertaining to tax sales, specifically focusing on defining who is eligible to bid at these sales. This bill aims to enhance the accessibility of tax sale properties to owner-occupants and certain nonprofit organizations active in affordable housing efforts. It provides that eligible bidders can include not only prospective owner-occupants but also nonprofit associations and housing agencies, expanding opportunities for housing stabilization in the state.
Contention
The discussion around the bill has highlighted concerns regarding the practicality of expanding bidders to include nonprofits and the potential implications for existing property owners. Critics may argue that while the intention to assist owner-occupants and nonprofits is commendable, it could complicate the tax sales process or potentially disadvantage private investors. Proponents, however, argue that it fosters community engagement and supports maintaining affordable housing during financially challenging times.