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| 4 | 4 | | |
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| 5 | 5 | | 2025 -- S 0711 |
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| 7 | 7 | | LC000615 |
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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 CONSERVATION TRU ST FUND ACT |
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| 17 | 17 | | Introduced By: Senators Bissaillon, Urso, Sosnowski, Mack, and Gu |
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| 18 | 18 | | Date Introduced: March 07, 2025 |
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| 19 | 19 | | Referred To: Senate Housing & Municipal Government |
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| 20 | 20 | | |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Sections 42-113-3, 42-113-4, 42-113-5, 42-113-6 and 42-113-7 of the 1 |
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| 24 | 24 | | General Laws in Chapter 42-113 entitled "Rhode Island Housing and Conservation Trust Fund Act" 2 |
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| 25 | 25 | | are hereby amended to read as follows: 3 |
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| 26 | 26 | | 42-113-3. Definitions. 4 |
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| 27 | 27 | | As used in this chapter: 5 |
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| 28 | 28 | | (1) “Agricultural land” means any land which is actively devoted to agricultural or 6 |
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| 29 | 29 | | horticultural use including, but not limited to, a commercial enterprise or community garden 7 |
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| 30 | 30 | | enterprise which has its primary purpose horticulture, viticulture, viniculture, floriculture, forestry, 8 |
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| 31 | 31 | | composting, stabling of horses, dairy farming, or aquaculture, or the raising of livestock, fur-9 |
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| 32 | 32 | | bearing animals, poultry or bees. 10 |
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| 33 | 33 | | (2) “Board” means the Rhode Island housing and conservation board established by this 11 |
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| 34 | 34 | | chapter. 12 |
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| 35 | 35 | | (2)(3) “Eligible activity” means any activity that will carry out either or both of the dual 13 |
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| 36 | 36 | | purposes of creating and sustaining low and moderate income housing and conserving and 14 |
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| 37 | 37 | | protecting important Rhode Island lands, including activities that will encourage or assist: 15 |
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| 38 | 38 | | (i) The preservation, rehabilitation, or development of residential dwelling units which are 16 |
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| 39 | 39 | | affordable to lower low- or moderate-income Rhode Islanders Island households; 17 |
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| 40 | 40 | | (ii) The protection of important wildlife habitat and important natural areas; 18 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC000615 - Page 2 of 8 |
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| 44 | 44 | | (iii) The preservation of historic properties of resources; 1 |
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| 45 | 45 | | (iv) The protection of areas suited for outdoor public recreational activity; 2 |
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| 46 | 46 | | (v) The retention of agricultural land for agricultural use; and 3 |
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| 47 | 47 | | (vi) The development of capacity on the part of an eligible applicant to engage in an eligible 4 |
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| 48 | 48 | | activity. 5 |
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| 49 | 49 | | (3)(4) “Eligible applicant” means any municipality or department of state government of 6 |
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| 50 | 50 | | the state, nonprofit organization qualifying under 26 U.S.C. § 501(c)(3) or limited equity 7 |
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| 51 | 51 | | cooperative housing corporation, a company that is licensed to do business in the State of Rhode 8 |
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| 52 | 52 | | Island where the proposed application creates or preserves housing that serves or intends to serve 9 |
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| 53 | 53 | | whose purpose is either the creation or preservation of low and moderate income households; or 10 |
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| 54 | 54 | | any municipality or department of state government of this state, nonprofit organization qualifying 11 |
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| 55 | 55 | | under 26 U.S.C. § 501(c)(3) that conserves or protects important natural areas, wildlife habitat, 12 |
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| 56 | 56 | | housing for lower income Rhode Islanders or the conservation of open lands or agricultural lands. 13 |
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| 57 | 57 | | (4)(5) “Fund” means the Rhode Island housing and conservation trust fund established by 14 |
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| 58 | 58 | | this chapter. 15 |
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| 59 | 59 | | (5)(6) “Historic property or resource” means any building, structure, object, district, area, 16 |
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| 60 | 60 | | or site that is significant in the history, architecture, archeology, or culture of this state, its 17 |
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| 61 | 61 | | communities, or the nation. 18 |
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| 62 | 62 | | (6)(7) “Important natural area” means any area containing one or more state or federal 19 |
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| 63 | 63 | | endangered or threatened species as defined in the general laws or any area essential to maintaining 20 |
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| 64 | 64 | | the ecological diversity or natural heritage of the state. 21 |
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| 65 | 65 | | (7) “Lower income” means households whose incomes do not exceed sixty percent (60%) 22 |
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| 66 | 66 | | of the median family income by family size for the area of the state in which the family lives as 23 |
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| 67 | 67 | | determined annually by the U.S. Department of Housing and Urban Development. 24 |
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| 68 | 68 | | (8) “Low- or moderate-income households” means households that meet the definition of 25 |
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| 69 | 69 | | low- and moderate-income under § 45-53-3. 26 |
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| 70 | 70 | | 42-113-4. Creation of the Rhode Island housing and conservation board. 27 |
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| 71 | 71 | | (a) There is hereby authorized, created and established a body politic and corporate to be 28 |
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| 72 | 72 | | known as the “Rhode Island housing and conservation board” to carry out the provisions of this 29 |
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| 73 | 73 | | chapter. The board is constituted a public instrumentality exercising public and essential 30 |
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| 74 | 74 | | governmental functions, and the exercise by the board of the powers conferred by this chapter are 31 |
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| 75 | 75 | | deemed and held to be the performance of an essential governmental function of the state. 32 |
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| 76 | 76 | | (b) The board shall consist of nine (9) fifteen (15) members: 33 |
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| 77 | 77 | | (1) The four (4) non-voting ex-officio members shall include the director of the department 34 |
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| 78 | 78 | | |
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| 79 | 79 | | |
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| 80 | 80 | | LC000615 - Page 3 of 8 |
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| 81 | 81 | | of environmental management, or a designee; the director of the office of intergovernmental affairs/ 1 |
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| 82 | 82 | | the secretary of the department of housing, or designee; the executive director of the Rhode Island 2 |
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| 83 | 83 | | housing and mortgage finance corporation, or designee; and the director of the office of statewide 3 |
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| 84 | 84 | | planning, or designee. 4 |
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| 85 | 85 | | (2) The governor, with the advice and consent of the senate, shall appoint five (5) eleven 5 |
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| 86 | 86 | | (11) voting members of the general public. The public appointees shall include at least one member 6 |
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| 87 | 87 | | representing the interests of the environmental community, one member representing the interests 7 |
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| 88 | 88 | | of the conservation and land trust community, one member representing family farm interests, a 8 |
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| 89 | 89 | | municipal planner representing a city or town with more than forty thousand (40,000) residents, a 9 |
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| 90 | 90 | | municipal planner representing a city or town with less than forty thousand (40,000) residents, one 10 |
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| 91 | 91 | | member representing the interests of nonprofit community development corporations, one member 11 |
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| 92 | 92 | | representing the interests of the housing land trust community, one member representing the 12 |
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| 93 | 93 | | interests of the for-profit developer/builder community, one member representing land use 13 |
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| 94 | 94 | | planning/smart growth interests, one member representing a tenant advocacy organization, and one 14 |
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| 95 | 95 | | member representing historic preservation. The public appointees should reflect the demographic 15 |
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| 96 | 96 | | diversity of the state including, but not limited to, representation from black, brown and indigenous 16 |
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| 97 | 97 | | communities. In making these appointments, the governor shall give due consideration to 17 |
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| 98 | 98 | | recommendations made by the Rhode Island Community Reinvestment Association, Environment 18 |
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| 99 | 99 | | Council of Rhode Island, Rhode Island Association of Land Trusts, and representatives of tenancy 19 |
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| 100 | 100 | | advocacy and family farm associations. 20 |
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| 101 | 101 | | (3) Any designee of the four (4) governmental members serving ex-officio as stipulated in 21 |
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| 102 | 102 | | subsection (b)(1) of this section or of the three (3) members who is a chair or president of a 22 |
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| 103 | 103 | | nongovernmental organization as stipulated in subsection (b)(2) of this section shall be a 23 |
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| 104 | 104 | | subordinate of the designator within his or her respective department, office, or nongovernmental 24 |
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| 105 | 105 | | organization. These designees shall represent him or her at all meetings of the board. 25 |
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| 106 | 106 | | (4) No one shall be eligible for public appointment unless the person is a resident of this 26 |
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| 107 | 107 | | state. 27 |
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| 108 | 108 | | (5) Newly appointed and qualified public members and designees of ex-officio members 28 |
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| 109 | 109 | | shall, within six (6) months of their qualification or designation, attend a training course that is 29 |
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| 110 | 110 | | developed by non-voting ex officio members with board approval and conducted by the chair or 30 |
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| 111 | 111 | | the chair’s designee and shall include instruction in the subject area of chapter 113 of this title and 31 |
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| 112 | 112 | | chapter 46 of this title, chapter 14 of title 36, and chapter 2 of title 38; and the board’s rules and 32 |
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| 113 | 113 | | regulations. 33 |
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| 114 | 114 | | (c) Those members of the board as of July 9, 2005 who were appointed to the board by 34 |
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| 115 | 115 | | |
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| 116 | 116 | | |
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| 117 | 117 | | LC000615 - Page 4 of 8 |
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| 118 | 118 | | members of the general assembly shall cease to be members of the commission on July 9, 2005. 1 |
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| 119 | 119 | | Appointments to the board shall be made by December 31, 2026. Public members of the board 2 |
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| 120 | 120 | | appointed by the governor will be appointed for three-year (3) terms and cannot serve more than 3 |
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| 121 | 121 | | two (2) consecutive terms. 4 |
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| 122 | 122 | | (d) Annually, the board governor shall elect select from among its public members a 5 |
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| 123 | 123 | | chairperson. The board shall elect from among its members a and vice-chairperson. The board may 6 |
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| 124 | 124 | | elect from among its members and any other officers it deems necessary. Meetings shall be held at 7 |
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| 125 | 125 | | the call of the chairperson or at the request of three (3) members. A majority of the sitting members 8 |
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| 126 | 126 | | shall constitute a quorum and action taken by the board under the provisions of this chapter may be 9 |
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| 127 | 127 | | authorized by a majority of the members present and voting at any regular or special meeting. 10 |
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| 128 | 128 | | (e) Three (3) or more voting members of the board shall constitute a quorum for the 11 |
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| 129 | 129 | | transaction of business. A majority vote of those present shall be required for action. No vacancy 12 |
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| 130 | 130 | | in the membership of the board shall impair the right of a quorum to exercise all of the rights and 13 |
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| 131 | 131 | | perform all of the duties of the board. 14 |
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| 132 | 132 | | (f) Any vacancy which may occur in the board shall be filled accordingly in the same 15 |
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| 133 | 133 | | manner as prescribed above. 16 |
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| 134 | 134 | | (g)(1) The board shall governor may appoint and employ an executive director, and it shall 17 |
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| 135 | 135 | | be the executive director’s duty to: 18 |
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| 136 | 136 | | (1)(i) Supervise and administer allocations made through the trust fund in accordance with 19 |
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| 137 | 137 | | this chapter and with the rules and regulations of the board; 20 |
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| 138 | 138 | | (2)(ii) Act as the chief administrative officer having general charge of the office and records 21 |
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| 139 | 139 | | and to employ temporarily, subject to the approval of the board, necessary personnel to serve at the 22 |
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| 140 | 140 | | executive director’s pleasure and who shall be in the unclassified service and whose salaries shall 23 |
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| 141 | 141 | | be set by the board; 24 |
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| 142 | 142 | | (3)(iii) Act as executive secretary of the board; and 25 |
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| 143 | 143 | | (4)(iv) Perform other duties as determined by the board, which are in accordance with this 26 |
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| 144 | 144 | | chapter and with the rules and regulations of the board. 27 |
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| 145 | 145 | | (2) The governor may remove any member for cause or misconduct in office after giving 28 |
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| 146 | 146 | | the member a copy of the charges/allegations against them and an opportunity to be heard, in 29 |
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| 147 | 147 | | person, or with or by counsel, in their defense, upon not less than ten (10) days notice. If any 30 |
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| 148 | 148 | | member shall be removed, the governor shall file in the office of the secretary of state a complete 31 |
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| 149 | 149 | | statement of charges made against the member and the governor's findings, together with a 32 |
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| 150 | 150 | | complete record of the proceedings. 33 |
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| 151 | 151 | | (3) Whenever public hearings are required under this chapter, or whenever the board 34 |
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| 152 | 152 | | |
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| 153 | 153 | | |
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| 154 | 154 | | LC000615 - Page 5 of 8 |
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| 155 | 155 | | determines a public hearing is appropriate, the board shall use reasonable efforts to hold those 1 |
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| 156 | 156 | | hearings at a place or places that will reasonably accommodate the interested parties. 2 |
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| 157 | 157 | | (h) The board shall use the office of the attorney general for legal services. 3 |
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| 158 | 158 | | (i) Within ninety (90) days after the end of each fiscal year, the board shall approve and 4 |
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| 159 | 159 | | submit an annual report to the governor, the speaker of the house of representatives, the president 5 |
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| 160 | 160 | | of the senate, and the secretary of state of its activities during that fiscal year. The report shall 6 |
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| 161 | 161 | | provide: an operating statement summarizing meetings or hearings held, meeting minutes if 7 |
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| 162 | 162 | | requested, subjects addressed, decisions rendered, rules or regulations promulgated, studies 8 |
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| 163 | 163 | | conducted, policies and plans developed, approved, or modified, and programs administered or 9 |
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| 164 | 164 | | initiated; a consolidated financial statement of all funds received and expended including the source 10 |
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| 165 | 165 | | of the funds, a listing of any staff supported by these funds, and a summary of any clerical, 11 |
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| 166 | 166 | | administrative, or technical support received; a summary of performance during the previous fiscal 12 |
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| 167 | 167 | | year including accomplishments, shortcomings, and remedies; a synopsis of hearings, complaints, 13 |
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| 168 | 168 | | suspensions, or other legal matters related to the authority of the board; a summary of any training 14 |
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| 169 | 169 | | courses held pursuant to subsection (b)(5) of this section; a briefing on anticipated activities in the 15 |
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| 170 | 170 | | upcoming fiscal year; and findings and recommendations for improvements. The report shall be 16 |
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| 171 | 171 | | posted electronically on the general assembly and the secretary of state’s websites as prescribed in 17 |
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| 172 | 172 | | § 42-20-8.2. 18 |
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| 173 | 173 | | 42-113-5. Creation of Rhode Island housing and conservation trust fund. 19 |
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| 174 | 174 | | (a) There is created a special account in the state general fund distributed by the Rhode 20 |
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| 175 | 175 | | Island infrastructure bank and administered by the housing and conservation board to be known as 21 |
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| 176 | 176 | | the “Rhode Island housing and conservation trust fund.” The fund shall be administered by the 22 |
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| 177 | 177 | | board and expenditures from the fund shall be made only to implement and effectuate the policies 23 |
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| 178 | 178 | | and purposes of this chapter. The board is authorized to accept any federal funding, private grant, 24 |
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| 179 | 179 | | devise, bequest, donation, gift, loan or assignment of money, bonds, or other valuable securities for 25 |
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| 180 | 180 | | deposit in and credit of the Rhode Island housing and conservation trust fund. 26 |
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| 181 | 181 | | (b) Unexpended balances and any earnings shall not revert to the general fund but shall 27 |
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| 182 | 182 | | remain in the fund designated account created by the Rhode Island infrastructure bank for use in 28 |
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| 183 | 183 | | accord with the purposes of this chapter. 29 |
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| 184 | 184 | | (c) The members of the board and the executive director shall be appointed upon June 23, 30 |
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| 185 | 185 | | 1994 December 31, 2026. 31 |
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| 186 | 186 | | 42-113-6. General powers and duties. 32 |
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| 187 | 187 | | (a) The board has all of the powers necessary and convenient to carry out and effectuate 33 |
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| 188 | 188 | | the purposes and provisions of this chapter, including without limitation those general powers 34 |
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| 189 | 189 | | |
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| 190 | 190 | | |
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| 191 | 191 | | LC000615 - Page 6 of 8 |
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| 192 | 192 | | provided to a business corporation by and including, without limiting the generality of the 1 |
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| 193 | 193 | | foregoing, the power to: 2 |
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| 194 | 194 | | (1) Upon application from an eligible applicant in a form prescribed by the board, provide 3 |
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| 195 | 195 | | funding in the form of grants or loans for eligible activities; 4 |
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| 196 | 196 | | (2) Enter into cooperative agreements with private organizations or individuals or with any 5 |
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| 197 | 197 | | agency or instrumentality of the United States or of this state to carry out the purposes of this 6 |
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| 198 | 198 | | chapter; 7 |
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| 199 | 199 | | (3) Issue rules in accordance with the administrative procedures act, chapter 35 of this title, 8 |
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| 200 | 200 | | for the purpose of administering the provisions of this chapter; and 9 |
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| 201 | 201 | | (4) Make rules and regulations governing the appropriate transfer and/or conversion of 10 |
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| 202 | 202 | | open space lands, provided that these rules and regulations are in accordance with federal and state 11 |
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| 203 | 203 | | guidelines for the conversion of open space lands. 12 |
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| 204 | 204 | | (b) All meetings, records and other documents or functions of the board shall be open to 13 |
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| 205 | 205 | | full public scrutiny. 14 |
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| 206 | 206 | | (c) The board shall promulgate rules and regulations to carry out the purpose of the 15 |
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| 207 | 207 | | authority provided pursuant to subsection (a)(4) of this section. 16 |
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| 208 | 208 | | 42-113-7. Allocation system. 17 |
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| 209 | 209 | | (a) In determining the allocation of funds available for the purposes of this chapter, the 18 |
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| 210 | 210 | | board shall evaluate each proposal on the basis of the following criteria: 19 |
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| 211 | 211 | | (1) The need to maintain balance between the dual goals in allocating resources; 20 |
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| 212 | 212 | | (2) The need for a timely response to unpredictable circumstances or special opportunities 21 |
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| 213 | 213 | | to serve the purposes of this chapter; 22 |
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| 214 | 214 | | (3) The level of funding or other participation by private or public sources in the activity 23 |
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| 215 | 215 | | being considered for funding by the board; 24 |
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| 216 | 216 | | (4) What resources will be required in the future to sustain the project; 25 |
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| 217 | 217 | | (5) The need to pursue the goals of this chapter without displacing lower low- and 26 |
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| 218 | 218 | | moderate-income Rhode Islanders Island households; and 27 |
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| 219 | 219 | | (6) The long-term effect of proposed activity and, with respect to low and moderate income 28 |
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| 220 | 220 | | housing households and, the likelihood that the activity will prevent the loss of subsidized housing 29 |
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| 221 | 221 | | units and will result in the preservation of affordability; and in perpetuity. 30 |
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| 222 | 222 | | (7) The eligible applicant has demonstrated a commitment to long-term affordability. 31 |
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| 223 | 223 | | (b) The board’s allocation system shall include a method, defined by rule, that evaluates 32 |
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| 224 | 224 | | the need for, impact of, and quality of, activities proposed by applicants. 33 |
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| 225 | 225 | | (c) Any eligible owner or prospective eligible owner of a development where eligible units 34 |
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| 226 | 226 | | |
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| 227 | 227 | | |
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| 228 | 228 | | LC000615 - Page 7 of 8 |
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| 229 | 229 | | are located will specifically agree to make at least fifty percent (50%) of all units located in the 1 |
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| 230 | 230 | | development available and affordable to eligible tenants on a perpetual basis subject to a long-term 2 |
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| 231 | 231 | | deed restriction as described in the definition of "low- or moderate-income housing" in § 45-53-3. 3 |
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| 232 | 232 | | (d) Twenty-five percent (25%) Thirty-five percent (35%) of the annual funds will be 4 |
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| 233 | 233 | | utilized to fund housing projects, twenty-five percent (25%) thirty-five percent (35%) will support 5 |
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| 234 | 234 | | conservation projects, and the remaining fifty percent (50%) thirty percent (30%) of the total annual 6 |
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| 235 | 235 | | fund can be used for either type of project with projects combining these goals and satisfying the 7 |
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| 236 | 236 | | above factors receiving highest priority. 8 |
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| 237 | 237 | | (e) No more than five percent (5%) of the total annual budget of the board, including funds 9 |
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| 238 | 238 | | to be distributed, shall be devoted to the costs of administration of this chapter. 10 |
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| 239 | 239 | | (f) Housing projects must result in units that are affordable for at least ninety-nine (99) 11 |
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| 240 | 240 | | years with the housing and conservation board retaining first right of refusal in the event of sale or 12 |
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| 241 | 241 | | transfer of property for which funds from this trust fund have been used. Open space conservation 13 |
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| 242 | 242 | | projects for which funds from this trust fund were used must remain for the purpose specified in 14 |
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| 243 | 243 | | the application for which they were granted. 15 |
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| 244 | 244 | | (g) The board shall have the authority to establish, remove, or modify from time to time 16 |
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| 245 | 245 | | according to the administrative procedures act, chapter 35 of this title, rules and regulations 17 |
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| 246 | 246 | | governing application and allocation procedures for grants and other functions necessitated by 18 |
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| 247 | 247 | | administration of this chapter. 19 |
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| 248 | 248 | | SECTION 2. This act shall take effect upon passage. 20 |
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| 255 | 255 | | EXPLANATION |
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| 256 | 256 | | BY THE LEGISLATIVE COUNCIL |
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| 257 | 257 | | OF |
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| 258 | 258 | | A N A C T |
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| 259 | 259 | | RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING |
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| 260 | 260 | | AND CONSERVATION TRU ST FUND ACT |
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| 261 | 261 | | *** |
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| 262 | 262 | | This act would restructure the Rhode Island Housing and Conservation Trust Fund, 1 |
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| 263 | 263 | | increase its membership to fifteen (15) members, eleven (11) of whom are to be from the general 2 |
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| 264 | 264 | | public and reallocate the percentage of the funds for housing, conservation and other goals. 3 |
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| 265 | 265 | | This act would take effect upon passage. 4 |
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