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| 5 | 5 | | 2025 -- S 0456 |
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| 7 | 7 | | LC000367 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING |
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| 16 | 16 | | AND MORTGAGE FINANCE CORPORATION |
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| 17 | 17 | | Introduced By: Senators Paolino, Quezada, Pearson, Acosta, Ciccone, LaMountain, and |
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| 18 | 18 | | Mack |
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| 19 | 19 | | Date Introduced: February 26, 2025 |
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| 20 | 20 | | Referred To: Senate Finance |
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| 21 | 21 | | |
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| 22 | 22 | | |
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| 23 | 23 | | It is enacted by the General Assembly as follows: |
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| 24 | 24 | | SECTION 1. Chapter 42-55 of the General Laws entitled "Rhode Island Housing and 1 |
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| 25 | 25 | | Mortgage Finance Corporation" is hereby amended by adding thereto the following section: 2 |
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| 26 | 26 | | 42-55-31. Revolving fund to assist first-time homebuyers and veterans. 3 |
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| 27 | 27 | | (a) There is created, as a separate fund within the treasury, the first-time homebuyers and 4 |
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| 28 | 28 | | veterans revolving fund (the "revolving fund"). The purpose of this revolving fund is to provide 5 |
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| 29 | 29 | | assistance to first-time homebuyers and veterans who are buying a home, through a revolving fund. 6 |
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| 30 | 30 | | The revolving fund shall assist these homebuyers in acquiring sufficient funds for an initial down 7 |
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| 31 | 31 | | payment on a home in Rhode Island, by providing grants. The revolving fund shall consist of any 8 |
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| 32 | 32 | | sums that the state may from time to time appropriate, as well as money received from donations, 9 |
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| 33 | 33 | | gifts, bequests, or otherwise from any public or private source, which money is intended to assist 10 |
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| 34 | 34 | | with promoting home purchases for first-time homebuyers and veterans. The general assembly shall 11 |
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| 35 | 35 | | authorize an appropriation of thirty million dollars ($30,000,000) to provide initial funding to 12 |
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| 36 | 36 | | establish this revolving fund. 13 |
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| 37 | 37 | | (b) The treasurer shall contract with the Rhode Island housing and mortgage finance 14 |
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| 38 | 38 | | corporation (hereinafter sometimes referred to as "RI housing") for the administration and 15 |
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| 39 | 39 | | disbursement of funds. The Rhode Island housing and mortgage finance corporation shall adopt 16 |
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| 40 | 40 | | rules and regulations in conjunction with the office of veterans affairs within the department of 17 |
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| 41 | 41 | | human services as well as with appropriate community groups consistent with the purposes of this 18 |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 44 | 44 | | LC000367 - Page 2 of 3 |
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| 45 | 45 | | section and chapter 35 of title 42 ("administrative procedures"), which provide for the orderly and 1 |
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| 46 | 46 | | equitable disbursement and repayment of funds. 2 |
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| 47 | 47 | | (c) Funds placed in the revolving fund shall be made available as follows: 3 |
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| 48 | 48 | | (1) To make grants to a first-time homebuyer or a veteran purchasing a single-family home 4 |
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| 49 | 49 | | or condominium in Rhode Island; 5 |
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| 50 | 50 | | (2) The maximum price on a home purchase for which a grant may be issued from the 6 |
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| 51 | 51 | | revolving fund shall be the median single-family house price on the market in Rhode Island as 7 |
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| 52 | 52 | | determined by the Rhode Island realtors association or any successor organization; 8 |
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| 53 | 53 | | (3) To be eligible for a grant from the revolving fund, a prospective purchaser shall: 9 |
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| 54 | 54 | | (i) Have a minimum credit score of at least six hundred twenty (620); 10 |
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| 55 | 55 | | (ii) As part of the application process, complete a homebuyer education course, available 11 |
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| 56 | 56 | | in person or online through RI housing; 12 |
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| 57 | 57 | | (iii) Obtain a RI housing-funded first-mortgage through a participating lender or the RI 13 |
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| 58 | 58 | | housing loan center; and 14 |
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| 59 | 59 | | (iv) Occupy the home as their primary residence during the period of the loan repayment. 15 |
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| 60 | 60 | | (d) The revolving fund shall provide a dollar-for-dollar match to be used as a down-16 |
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| 61 | 61 | | payment up to forty thousand dollars ($40,000). 17 |
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| 62 | 62 | | (e) In addition, applicants who qualify for a grant from the revolving fund shall also be 18 |
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| 63 | 63 | | eligible for a loan from RI housing or its affiliates at a special rate of interest which rate is one 19 |
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| 64 | 64 | | percent (1%) less than any other loan RI housing is offering to buyers who are not first-time home 20 |
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| 65 | 65 | | purchasers or veterans. This reduced rate shall remain on the loan until the loan is refinanced, the 21 |
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| 66 | 66 | | real property is resold, or the loan is repaid in full. This reduced interest rate shall not apply to a 22 |
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| 67 | 67 | | loan issued or authorized by RI housing or its affiliates which has an interest rate of four percent 23 |
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| 68 | 68 | | (4%) or less. 24 |
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| 69 | 69 | | (f) As used herein, the term "veteran" means a person who served on active duty with the 25 |
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| 70 | 70 | | U.S. Army, Air Force, Navy, Marine Corps, or Coast Guard, for a minimum of one hundred eighty 26 |
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| 71 | 71 | | (180) days and who was discharged or released under conditions other than dishonorable. 27 |
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| 72 | 72 | | Reservists or members of the National Guard called to federal active duty (for other than training) 28 |
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| 73 | 73 | | or disabled from a disease or injury incurred or aggravated in the line of duty or while in training 29 |
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| 74 | 74 | | status also qualify as a veteran pursuant to 38 C.F.R. part 74. 30 |
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| 75 | 75 | | SECTION 2. This act shall take effect on July 1, 2025. 31 |
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| 76 | 76 | | ======== |
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| 77 | 77 | | LC000367 |
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| 80 | 80 | | |
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| 81 | 81 | | LC000367 - Page 3 of 3 |
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| 82 | 82 | | EXPLANATION |
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| 83 | 83 | | BY THE LEGISLATIVE COUNCIL |
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| 84 | 84 | | OF |
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| 85 | 85 | | A N A C T |
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| 86 | 86 | | RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING |
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| 87 | 87 | | AND MORTGAGE FINANCE CORPORATION |
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| 88 | 88 | | *** |
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| 89 | 89 | | This act would establish a revolving fund to assist first-time homebuyers and veterans to 1 |
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| 90 | 90 | | purchase a home in Rhode Island by issuing grants of up to forty thousand dollars ($40,000). The 2 |
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| 91 | 91 | | revolving fund would be administered by the Rhode Island housing and mortgage finance 3 |
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| 92 | 92 | | corporation. This act would also authorize the Rhode Island housing and mortgage finance 4 |
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| 93 | 93 | | corporation to issue low interest loans to applicants who qualify for the grants. The act would also 5 |
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| 94 | 94 | | provide for an initial appropriation of thirty million dollars ($30,000,000) to establish the revolving 6 |
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| 95 | 95 | | fund. 7 |
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| 96 | 96 | | This act would take effect on July 1, 2025. 8 |
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| 98 | 98 | | LC000367 |
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