Rhode Island House Bill H5955

Rhode Island 2025 Regular Session

• Introduced: 2/28/25
• Refer: 2/28/25
• Report Pass: 6/17/25
• Engrossed: 6/18/25
• Engrossed: 6/20/25
• Passed: 6/27/25

Caption

Creates the department of housing land bank program to allow for the deposit of title to real estate assets for the purpose of developing residential housing.

Impact

The implementation of HB 5955 is expected to significantly alter the landscape of affordable housing in Rhode Island, addressing the growing demand for cost-effective residential options in the state. The legislation mandates municipalities to assess their real estate assets regularly, identifying underutilized properties that can be transferred to the land bank. This initiative aims to streamline the process of making land available for the construction of affordable housing, thus promoting responsible land use and development.

Summary

House Bill 5955 introduces the 'Housing Land Bank Program' in Rhode Island, established to facilitate the acquisition and development of real estate assets to create affordable housing. The program will allow the Rhode Island Housing and Mortgage Finance Corporation to buy, receive, and hold properties specifically aimed at increasing the availability of affordable housing. Any properties acquired by the corporation under this program can be donated or sold to qualified organizations, including public housing authorities and certain non-profits, to ensure they are developed as affordable housing units.

Sentiment

Overall, the sentiment surrounding the bill is largely positive, as it addresses a crucial need for affordable housing in the state. Legislators and stakeholders recognize the importance of increasing housing options, particularly in areas grappling with housing shortages and rising costs. However, there are concerns from some community members regarding the transparency and effectiveness of the program. Critics argue that the program must ensure that the acquisition and redevelopment processes are equitable and do not further marginalize already vulnerable communities.

Contention

Notable points of contention arise regarding the parameters for how properties can be acquired and subsequently developed through the land bank. There are debates regarding the potential for conflicts of interest or mismanagement of resources, particularly in choosing which entities will benefit from property sales. Additionally, some municipalities may be hesitant to transfer properties to the land bank without assurances that the program will genuinely enhance affordable housing options in their communities. The balance between swift development and community interests remains an ongoing discussion in the legislative process.