Directs RIHousing to work with stakeholders to investigate and determine ways to assist an incorporated homeowners' association to exercise rights to purchase leased land.
With the approval of S1053, the law will ensure that homeowners' associations are notified when their land is to be sold or leased, allowing them the opportunity to purchase or lease under the same terms as third-party offers. This could protect residents from sudden changes that might force them to relocate and could enhance local housing stability. Furthermore, an affidavit of compliance must be filed if the homeowners' association does not succeed in purchasing or leasing the land, adding a layer of accountability for landowners.
Bill S1053 amends existing laws to enhance the rights of incorporated homeowners' associations in relation to the purchase of leased land. Specifically, it introduces a framework allowing these associations—representing a majority of homeowners on leased land—to exercise a right of first refusal when a landowner receives a bona fide offer to sell or lease the land. This legislative change aims to empower residents and provide them with greater control over their living conditions, especially in situations where land might be sold or leased resulting in a discontinuance of housing.
While supporters of S1053 argue that the bill ensures fair treatment of residents living on leased land and safeguards their investment in their homes, opponents raise concerns about the practical implications of enforcing the right of first refusal. There are worries that it could complicate transactions for landowners and potentially deter investment in properties that have a majority of leaseholders. Critics also question the adequacy and distribution of information between landowners and homeowners' associations, fearing that this may lead to disputes and misunderstandings.