2016 -- S 2357

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TOWNS AND CITIES - HOUSING PROJECT LOANS

     Introduced By: Senator John A. Pagliarini

     Date Introduced: February 10, 2016

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 45-33.3 of the General Laws entitled "Housing Project Loans" is

hereby repealed in its entirety.

CHAPTER 45-33.3

Housing Project Loans

     45-33.3-1. Housing project loans. -- Any housing authority created under chapter 25 or

26 of this title, and any redevelopment agency created under chapter 31 of this title, is authorized

to make loans as provided in this chapter to any one or more persons, partnerships, or

corporations for the purpose of financing the acquisition, construction, rehabilitation, or other

development of one or more lower income housing projects located within their respective

communities. For purposes of this chapter, a lower income housing project means one or more

buildings and structures, and all real and personal property associated therewith, to be used

primarily for residential rental purposes; provided, that not less than twenty percent (20%) of the

residential units in the project will be occupied or available for occupancy, for a term of years that

the authority or agency determines, by persons or families whose income is fifty percent (50%) or

less of the median gross income for the area in which the project is located, as determined by the

United States Department of Housing and Urban Development; and provided, further, that a

portion of the cost of the project has been approved prior to April 30, 1988 for funding by a

housing development grant under § 17 of the United States Housing Act of 1937 [42 U.S.C. §

1417, repealed by Pub. L. 90-448, Aug. 1, 1968].

     45-33.3-2. Terms and conditions of loans. -- Loans made by a housing authority or

redevelopment agency pursuant to this chapter may be secured or unsecured, and may be in an

amount, payable on a date or dates, bear interest at a rate or rates, and otherwise have terms and

conditions relating to the loans, and to the lower income housing project financed by the loans, as

the housing authority or redevelopment agency determines or as may be required by the housing

development grant for the project. The proceeds of the loan shall be applied to costs of the lower

income housing project not funded by the housing development grant, and to other costs of the

project, the making of the loan, the issuance of bonds, as provided in this chapter, and the funding

and maintenance of reserves to secure the loan or bonds as the housing authority or

redevelopment agency determines. Any housing authority and any redevelopment agency is

authorized to accept security interests and mortgages in personal property and real estate to secure

loans made or bonds issued under this chapter, and is empowered to exercise all of the rights of a

secured party or mortgagee with respect to the security.

     45-33.3-3. Bonds. -- (a) Any housing authority or redevelopment agency has power to

issue bonds from time to time in its discretion for the purpose of funding any loan made under

this chapter, or for the purpose of refunding, paying, or retiring bonds previously issued by it for

that purpose.

      (b) The bonds may be unsecured or secured by an assignment of the loan or any rights

thereunder, by a pledge of any income or revenue of the authority or the agency received on

account of loan, by a mortgage on or security interest in the lower income housing project

financed by it, by letters of credit, lines of credit or other credit instruments, or by any

combination of the preceding as the authority or agency determines in its discretion.

      (c) The bonds of the authority or the agency are authorized by its resolution, may be

issued in one or more series, and shall be dated, mature at a time or times, bear interest at a rate or

rates, payable at a time or times, be in a form, be subject to terms of redemption, tender, or

repurchase and bear any other terms and conditions as the resolution, or any trust indenture,

mortgage, or other contract, providing for their issuance or securing the bonds, may provide.

      (d) The bonds may be sold by the housing authority or redevelopment agency at public

or private sale at a price or prices that the authority or agency determines.

      (e) Except to the extent inconsistent with any provision of this chapter, the issue of

bonds pursuant to this chapter and their details, the rights of their holders and the rights, duties,

and obligations of the authority or agency in respect of the bonds are governed by the provisions

of chapters 27 and 33 of this title insofar as those provisions may be applicable.

     45-33.3-4. Powers supplementary. -- The authorization and enpowerments provided by

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this chapter are in addition and supplemental to the powers conferred by any other law, and

nothing contained in this chapter shall be construed as limiting any other powers of a housing

authority or redevelopment agency.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES - HOUSING PROJECT LOANS

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     This act would repeal the provisions of the general laws which authorized housing

authorities and redevelopment agencies to loan money for constructing low income housing.

     This act would take effect upon passage.

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