2017 -- S 0444

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LC001934

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - STUDENT AND RESIDENTIAL

MORTGAGE LOANS

     Introduced By: Senators Archambault, McCaffrey, Lombardi, Jabour, and Conley

     Date Introduced: March 02, 2017

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND

GOVERNMENT" is hereby amended by adding thereto the following chapter:

CHAPTER 128.3

STUDENT AND RESIDENTIAL MORTGAGE LOANS

     42-128.3-1. Purpose.

     The purpose of this chapter is to provide financial assistance to purchase a home and pay

off student loan debts under certain circumstances.

     42-128.3-2. Student debt mortgage program created.

     (a) The state under the direction of the executive director pursuant to §42-128-11 in

partnership with local communities, housing authorities created under chapter 25 or 26 of title 45,

any redevelopment agency created under chapter 31 of title 45, and the Rhode Island housing

authority shall undertake a commitment for:

     (1) Financial assistance to a family of limited income for maintaining or modifying their

existing residential loan; or

     (2) Financial assistance made in conjunction with a new residential mortgage loan to

enable a homeowner to refinance an existing residential mortgage loan.

     (b) Programs pursuant to this chapter shall be permitted only where the property is

approved by the executive director pursuant to rules and regulations to be promulgated by the

executive director; provided however, that the borrower must have an existing student debt of a

minimum of one thousand dollars ($1,000) and up to a maximum of fifteen percent (15%) of the

home purchase price for the borrower to pay off the outstanding student debt pursuant to this

chapter.

     (c) Programs permitted pursuant to this chapter shall be used for the purpose of

refinancing or eliminating student debt and eligible properties and borrowers shall be approved

by the commission subject to customary underwriting standards.

     42-128.3-3. Rules and regulations.

     The executive director in accordance with §42-128.3-1 shall promulgate rules and

regulations necessary to implement the purpose of this chapter.

     42-128.3-4. Severability and liberal construction.

     If any provision of this chapter or the application of any provision to any person or

circumstance is held invalid, the invalidity shall not affect other provisions or applications of the

chapter, which can be given effect without the invalid provision or application, and to this end the

provisions of this chapter are declared to be severable. The provisions of this chapter shall be

construed liberally in order to accomplish the purposes of the chapter, and where any specific

power is given to the commission, the statement shall not be deemed to exclude or impair any

power otherwise in this chapter conferred upon the commission.

     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 STATE AFFAIRS AND GOVERNMENT - STUDENT AND RESIDENTIAL

MORTGAGE LOANS

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     This act would authorize the creation of a state sponsored loan program to help pay off

student debt.

     This act would take effect upon passage.

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LC001934

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