2016 -- H 7552

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LC004528

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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 AFFORDABLE HOUSING -- CAPITAL DEVELOPMENT PROGRAM

     

     Introduced By: Representatives Slater, Maldonado, Kazarian, Diaz, and Barros

     Date Introduced: February 10, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Proposition to be submitted to the people. -- At the general election to be

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held on the Tuesday next after the first Monday in November 2016, there shall be submitted to

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the people for their approval or rejection the following proposition:

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      "Shall the action of the general assembly, by an act passed at the January 2016 session,

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authorizing the issuance of bonds, refunding bonds, and temporary notes of the state for the

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capital projects and in the amount with respect to each such project listed below be approved, and

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the issuance of bonds, refunding bonds, and temporary notes authorized in accordance with the

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provisions of said act?"

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     Project: (1) Affordable Housing $100,000,000

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     Approval of this question will allow the State of Rhode Island to issue general obligation

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bonds, refunding bonds, and temporary notes in an amount not to exceed one hundred million

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dollars ($100,000,000) for affordable housing.

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     SECTION 2. Ballot labels and applicability of general election laws. -- The secretary

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of state shall prepare and deliver to the state board of elections ballot labels for each of the

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projects provided for in Section 1 hereof with the designations "approve" or "reject" provided

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next to the description of each such project to enable voters to approve or reject each such

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proposition. The general election laws, so far as consistent herewith, shall apply to this

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proposition.

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     SECTION 3. Approval of projects by people. -- If a majority of the people voting on

 

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the proposition provided for in Section 1 hereof shall vote to approve the proposition as to any

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project provided for in Section 1 hereof, said project shall be deemed to be approved by the

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people. The authority to issue bonds, refunding bonds and temporary notes of the state shall be

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limited to the aggregate amount for all such projects as set forth in the proposition provided for in

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Section 1 hereof which has been approved by the people.

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     SECTION 4. Bonds for capital development program. -- The general treasurer is

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hereby authorized and empowered with the approval of the governor and in accordance with the

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provisions of this act, to issue from time to time capital development bonds in serial form in the

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name and on behalf of the state in amounts as may be specified from time to time by the governor

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in an aggregate principal amount not to exceed the total amount for all projects approved by the

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people and designated as "capital development loan of 2016 bonds"; provided, however, that the

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aggregate principal amount of such capital development bonds and of any temporary notes

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outstanding at any one time issued in anticipation thereof pursuant to Section 7 hereof shall not

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exceed the total amount for all such projects as have been approved by the people. All provisions

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in this act relating to "bonds" shall also be deemed to apply to "refunding bonds".

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     Capital development bonds issued under this act shall be in denominations of one

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thousand dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency

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of the United States which at the time of payment shall be legal tender for public and private

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debts. These capital development bonds shall bear such date or dates, mature at specified time or

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times, but not beyond the end of the twentieth state fiscal year following the state fiscal year in

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which they are issued, bear interest payable semi-annually at a specified rate or different or

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varying rates, be payable at designated time or times at specified place or places, be subject to

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expressed terms of redemption or recall, with or without premium, be in a form, with or without

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interest coupons attached, carry such registration, conversion, reconversion, transfer, debt

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retirement, acceleration and other provisions as may be fixed by the general treasurer, with the

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approval of the governor, upon each issue of such capital development bonds at the time of each

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issue. Whenever the governor shall approve the issuance of such capital development bonds, they

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shall certify approval to the secretary of state; the bonds shall be signed by the general treasurer

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and countersigned by the manual or facsimile signature of the secretary of state and shall bear the

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seal of the state or a facsimile thereof. The approval of the governor shall be endorsed on each

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bond so approved with a facsimile of their signature.

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     SECTION 5. Refunding bonds for 2016 capital development program. -- The general

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treasurer is hereby authorized and empowered, with the approval of the governor and in

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accordance with the provisions of this act, to issue from time to time bonds to refund the 2016

 

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capital development program bonds in the name and on behalf of the state, in amounts as may be

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specified from time to time by the governor in an aggregate principal amount not to exceed the

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total amount approved by the people, to be designated as "capital development program loan of

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2016 refunding bonds" (hereinafter "refunding bonds").

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      The general treasurer with the approval of the governor shall fix the terms and form of

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any refunding bonds issued under this act in the same manner as the capital development bonds

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issued under this act, except that the refunding bonds may not mature more than twenty (20)

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years from the date of original issue of the capital development bonds being refunded.

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     The proceeds of the refunding bonds, exclusive of any premium and accrual interest and

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net the underwriters’ cost, and cost of bond insurance, shall, upon their receipt, be paid by the

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general treasurer immediately to the paying agent for the capital development bonds which are to

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be called and prepaid. The paying agent shall hold the refunding bond proceeds in trust until they

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are applied to prepay the capital development bonds. While such proceeds are held in trust, they

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may be invested for the benefit of the state in obligations of the United States of America or the

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state of Rhode Island.

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     If the general treasurer shall deposit with the paying agent for the capital development

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bonds the proceeds of the refunding bonds or proceeds from other sources amounts that, when

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invested in obligations of the United States or the state of Rhode Island, are sufficient to pay all

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principal, interest, and premium, if any, on the capital development bonds until these bonds are

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called for prepayment, then such capital development bonds shall not be considered debts of the

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state of Rhode Island for any purpose from the date of deposit of such monies with the paying

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agent. The refunding bonds shall continue to be a debt of the state until paid.

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     The term "bond" shall include "note", and the term "refunding bonds" shall include

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"refunding notes" when used in this act.

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      SECTION 6. Proceeds of capital development program. -- The general treasurer is

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directed to deposit the proceeds from the sale of capital development bonds issued under this act,

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exclusive of premiums and accrued interest and net the underwriters’ cost, and cost of bond

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insurance, in one or more of the depositories in which the funds of the state may be lawfully kept

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in special accounts (hereinafter cumulatively referred to as "such capital development bond

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fund") appropriately designated for each of the projects set forth in Section 1 hereof which shall

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have been approved by the people to be used for the purpose of paying the cost of all such

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projects so approved.

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     All monies in the capital development bond fund shall be expended for the purposes

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specified in the proposition provided for in Section 1 hereof under the direction and supervision

 

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of the director of administration (hereinafter referred to as "director"). The director or their

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designee shall be vested with all power and authority necessary or incidental to the purposes of

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this act, including, but not limited to, the following authority: (1) To acquire land or other real

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property or any interest, estate or right therein as may be necessary or advantageous to

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accomplish the purposes of this act; (2) To direct payment for the preparation of any reports,

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plans and specifications, and relocation expenses and other costs such as for furnishings,

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equipment designing, inspecting and engineering, required in connection with the implementation

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of any projects set forth in Section 1 hereof; (3) To direct payment for the costs of construction,

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rehabilitation, enlargement, provision of service utilities, and razing of facilities, and other

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improvements to land in connection with the implementation of any projects set forth in Section 1

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hereof; and (4) To direct payment for the cost of equipment, supplies, devices, materials and labor

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for repair, renovation or conversion of systems and structures as necessary for 2016 capital

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development program bonds or notes hereunder from the proceeds thereof. No funds shall be

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expended in excess of the amount of the capital development bond fund designated for each

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project authorized in Section 1 hereof. With respect to the bonds and temporary notes described

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in Section 1, the proceeds shall be utilized for the following purposes:

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     Question 1 relating to bonds in the amount of one hundred million dollars ($100,000,000)

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for Affordable Housing shall be allocated as follows:

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     Provides funding to the Housing Resources Commission to provide state funds to

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promote affordable housing through redevelopment of existing structures, or new construction.

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     SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority

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of this act shall be sold from time to time at not less than the principal amount thereof, in such

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mode and on such terms and conditions as the general treasurer, with the approval of the

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governor, shall deem to be for the best interests of the state.

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     Any premiums and accrued interest, net of the cost of bond insurance and underwriters

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discount, that may be received on the sale of the capital development bonds or notes shall become

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part of the Rhode Island capital fund of the state, unless directed by federal law or regulation to

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be used for some other purpose.

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     In the event that the amount received from the sale of the capital development bonds or

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notes exceeds the amount necessary for the purposes stated in Section 6 hereof, the surplus may

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be used to the extent possible to retire the bonds as the same may become due, to redeem them in

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accordance with the terms thereof or otherwise to purchase them as the general treasurer, with the

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approval of the governor, shall deem to be for the best interests of the state.

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          Any bonds or notes issued under the provisions of this act and coupons on any capital

 

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development bonds, if properly executed by the manual or facsimile signatures of officers of the

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state in office on the date of execution shall be valid and binding according to their tenor,

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notwithstanding that before the delivery thereof and payment therefor, any or all such officers

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shall for any reason have ceased to hold office.

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          SECTION 8. Bonds and notes to be tax exempt and general obligations of the

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state. -- All bonds and notes issued under the authority of this act shall be exempt from taxation

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in the state and shall be general obligations of the state, and the full faith and credit of the state is

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hereby pledged for the due payment of the principal and interest on each of such bonds and notes

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as the same shall become due.

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          SECTION 9. Investment of monies in fund. -- All monies in the capital development

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fund not immediately required for payment pursuant to the provisions of this act may be invested

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by the investment commission, as established by chapter 10 of title 35, pursuant to the provisions

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of such chapter; provided, however, that the securities in which the capital development fund is

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invested shall remain a part of the capital development fund until exchanged for other securities;

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and provided further, that the income from investments of the capital development fund shall

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become a part of the general fund of the state and shall be applied to the payment of debt service

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charges of the state, unless directed by federal law or regulation to be used for some other

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purpose, or to the extent necessary, to rebate to the United States Treasury any income from

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investments (including gains from the disposition of investments) of proceeds of bonds or notes

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to the extent deemed necessary to exempt (in whole or in part) the interest paid on such bonds or

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notes from federal income taxation.

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          SECTION 10. Appropriation. -- To the extent the debt service on these bonds is not

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otherwise provided, a sum sufficient to pay the interest and principal due each year on bonds and

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notes hereunder is hereby annually appropriated out of any money in the treasury not otherwise

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appropriated.

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          SECTION 11. Advances from general fund. -- The general treasurer is authorized

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from time to time with the approval of the director and the governor, in anticipation of the issue

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of bonds or notes under the authority of this act, to advance to the capital development bond fund

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for the purposes specified in Section 6 hereof, any funds of the state not specifically held for any

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particular purpose; provided, however, that all advances made to the capital development bond

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fund shall be returned to the general fund from the capital development bond fund forthwith upon

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the receipt by the capital development fund of proceeds resulting from the issue of bonds or notes

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s to the extent of such advances.

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          SECTION 12. Federal assistance and private funds. -- In carrying out this act, the

 

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director, or their designee, is authorized on behalf of the state, with the approval of the governor,

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to apply for and accept any federal assistance which may become available for the purpose of this

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act, whether in the form of loan or grant or otherwise, to accept the provision of any federal

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legislation therefor, to enter into, act and carry out contracts in connection therewith, to act as

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agent for the federal government in connection therewith, or to designate a subordinate so to act.

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Where federal assistance is made available, the project shall be carried out in accordance with

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applicable federal law, the rules and regulations thereunder and the contract or contracts

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providing for federal assistance, notwithstanding any contrary provisions of state law. Subject to

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the foregoing, any federal funds received for the purposes of this act shall be deposited in the

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capital development bond fund and expended as a part thereof. The director or their designee may

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also utilize any private funds that may be made available for the purposes of this act.

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     SECTION 13. Effective Date. -- Sections 1, 2, 3, and 13 of this act shall take effect upon

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passage. The remaining sections of this act shall take effect if and when the state board of

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elections shall certify to the secretary of state that a majority of the qualified electors voting on

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the propositions contained in Section 1 hereof have indicated their approval of the project

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thereunder.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO AFFORDABLE HOUSING -- CAPITAL DEVELOPMENT PROGRAM

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     This act would provide for a bond referendum which would authorize the issuance of

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bonds for Affordable Housing in the amount of one hundred million dollars ($100,000,000), at

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the election to be held in November, 2016.

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     Sections 1, 2, 3, and 13 of this act would take effect upon passage. The remaining

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sections of this act would take effect if and when the state board of elections would certify to the

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secretary of state that a majority of the qualified electors voting on the propositions contained in

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Section 1 hereof have indicated their approval of the project thereunder.

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