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art.014/7/014/6/014/5/014/4/014/3/014/2/016/1 | ||
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1 | ARTICLE 14 AS AMENDED | |
2 | RELATING TO HOUSING | |
3 | SECTION 1. Chapter 42-51 of the General Laws entitled "Governor's Commission on | |
4 | Disabilities" is hereby amended by adding thereto the following section: | |
5 | 42-51-13. Livable home modification program. | |
6 | (a) There is hereby established the livable home modification program for home | |
7 | modification and accessibility enhancements to construct, retrofit, and/or renovate residences to | |
8 | allow individuals with significant disabilities to remain in community settings. | |
9 | (b) Any eligible resident who retrofits or hires an individual to retrofit an existing | |
10 | residence; provided that, such retrofitting meets the qualification criteria and guidelines as | |
11 | established by the commission, shall be eligible for a livable home modification grant of fifty | |
12 | percent (50%) of the total amount spent, not to exceed an amount annually appropriated by the | |
13 | commission in accordance with § 35-3-24. | |
14 | (c) The commission is authorized and directed to issue regulations regarding: | |
15 | (1) Income eligibility and other qualifications for a grant; | |
16 | (2) Application guidelines; | |
17 | (3) The maximum reimbursement; | |
18 | (4) Filing claims for reimbursement; and | |
19 | (5) Appeal procedures for applicants who are determined to be ineligible. | |
20 | (d) By August 15 of each year, the commission shall submit an annual report to the | |
21 | governor, speaker of the house, senate president and chairpersons of the house and senate finance | |
22 | committees for the period from July 1 to June 30 on the actual; | |
23 | (1) Number of grants issued to qualifying individuals; | |
24 | (2) Number of applications which did not qualify; | |
25 | (3) Total dollar amount of grants issued; | |
26 | (4) Average dollar amount of the grants issued; | |
27 | (5) Number of retrofits by accessibility features; and | |
28 | (6) Prognosis for the individual if the retrofit had not been made which shall determine: | |
29 | (i) Increased likelihood of falls and other related emergency room, hospital and/or | |
30 | rehabilitation expenses; | |
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1 | (ii) Loss of independence; and | |
2 | (iii) Move into a long-term care facility. | |
3 | SECTION 2. Section 42-64.19-3 of the General Laws in Chapter 42-64.19 entitled | |
4 | "Executive Office of Commerce" is hereby amended to read as follows: | |
5 | 42-64.19-3. Executive office of commerce. | |
6 | (a) There is hereby established within the executive branch of state government an | |
7 | executive office of commerce effective February 1, 2015, to serve as the principal agency of the | |
8 | executive branch of state government for managing the promotion of commerce and the economy | |
9 | within the state and shall have the following powers and duties in accordance with the following | |
10 | schedule: | |
11 | (1) On or about February 1, 2015, to operate functions from the department of business | |
12 | regulation; | |
13 | (2) On or about April 1, 2015, to operate various divisions and functions from the | |
14 | department of administration; | |
15 | (3) On or before September 1, 2015, to provide to the Senate and the House of | |
16 | Representatives a comprehensive study and review of the roles, functions, and programs of the | |
17 | department of administration and the department of labor and training to devise recommendations | |
18 | and a business plan for the integration of these entities with the office of the secretary of commerce. | |
19 | The governor may include such recommendations in the Fiscal Year 2017 budget proposal.; and | |
20 | (4) On or before July 1, 2021, to provide for the hiring of a deputy secretary of commerce | |
21 | and housing, who shall report directly to the secretary of commerce. The deputy secretary of | |
22 | commerce and housing shall: | |
23 | (i) Prior to hiring, have completed and earned a minimum of a master's graduate degree in | |
24 | the field of urban planning, economics, or a related field of study or possess a juris doctor law | |
25 | degree. Preference shall be provided to candidates having earned an advanced degree consisting of | |
26 | an L.L.M. Law degree or Ph.D in urban planning or economics. Qualified candidates must have | |
27 | documented five (5) years full-time experience employed in the administration of housing policy | |
28 | and/or development. | |
29 | (ii) Be responsible for overseeing all housing initiatives in the state of Rhode Island and | |
30 | developing a housing plan, including, but not limited to, the development of affordable housing | |
31 | opportunities to assist in building strong community efforts and revitalizing neighborhoods; | |
32 | (iii) Coordinate with all agencies directly related to any housing initiatives including, but | |
33 | not limited to, the Rhode Island housing and mortgage finance corporation, coastal resources | |
34 | management council (CRMC), and state departments including, but not limited to, the department | |
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1 | of environmental management (DEM), the department of business regulation (DBR), the | |
2 | department of transportation (DOT) and statewide planning; and | |
3 | (iv) Coordinate with the housing resources commission to formulate an integrated housing | |
4 | report to include findings and recommendations to the governor, speaker of the house, senate | |
5 | president, each chambers' finance committee, and any committee whose purview is reasonably | |
6 | related, including, but not limited to, issues of housing, municipal government, and health on or | |
7 | before December 31, 2021, and annually thereafter which report shall include, but not be limited | |
8 | to, the following: | |
9 | (A) The total number housing units in the state with per community counts, including the | |
10 | number of Americans with Disabilities Act compliant special needs units. | |
11 | (B) The occupancy and vacancy rate of the units referenced in (A). | |
12 | (C) The change in the number of units referenced in (A), for each of the prior three (3) | |
13 | years in figures and as a percentage. | |
14 | (D) The number of net new units in development and number of units completed since the | |
15 | prior report. | |
16 | (E) For each municipality the number of single family, two (2) family, and three (3) family | |
17 | units, and multi-unit housing delineated sufficiently to provide the lay reader a useful description | |
18 | of current conditions, including a statewide sum of each unit type. | |
19 | (F) The total number of units by income type. | |
20 | (G) A projection of the number of status quo units. | |
21 | (H) A projection of the number of units required to meet housing formation trends. | |
22 | (I) A comparison of regional and other similarly situated state funding sources which | |
23 | support housing development including a percentage of private, federal, and public support. | |
24 | (J) A reporting of unit types by number of bedrooms for rental properties including an | |
25 | accounting of all: | |
26 | (I) Single family units; | |
27 | (II) Accessory dwelling units; | |
28 | (III) Two (2) family units; | |
29 | (IV) Three (3) family units; | |
30 | (V) Multi-unit sufficiently delineated units; | |
31 | (VI) Mixed use sufficiently delineated units; and | |
32 | (VII) Occupancy and Vacancy rates for the prior three (3) years. | |
33 | (K) A reporting of unit types by ownership including an accounting of all: | |
34 | (I) Single family units; | |
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1 | (II) Accessory dwelling units; | |
2 | (III) Two (2) family units; | |
3 | (IV) Three (3) family units; | |
4 | (V) Multi-unit sufficiently delineated units; | |
5 | (VI) Mixed use sufficiently delineated units; and | |
6 | (VII) Occupancy and Vacancy rates for the prior three (3) years. | |
7 | (L) A reporting of the number of applications submitted or filed for each community | |
8 | according to unit type and an accounting of action taken with respect to each application to include, | |
9 | approved, denied, appealed, approved upon appeal, and if approved, the justification for each | |
10 | approval. | |
11 | (M) A reporting of permits for each community according to affordability level that were | |
12 | sought, approved, denied, appealed, approved upon appeal, and if approved, the justification for | |
13 | each approval. | |
14 | (N) A reporting of affordability by municipality which shall include the following: | |
15 | (I) The percent and number of units of extremely low, very low, low, moderate, fair market | |
16 | rate, and above market rate units; including the average and median costs of those units. | |
17 | (II) The percent and number of units of extremely low, very low, low and moderate income | |
18 | housing units required to satisfy the ten percent (10%) requirement pursuant to chapter 24 of title | |
19 | 45; including the average and median costs of those units. | |
20 | (III) The percent and number of units for the affordability levels above moderate income | |
21 | housing, including a comparison to fair market rent and fair market homeownership; including the | |
22 | average and median costs of those units. | |
23 | (IV) The percentage of cost burden by municipality with population equivalent. | |
24 | (V) The percentage and number of home financing sources, including all private, federal, | |
25 | state, or other public support. | |
26 | (VI) The cost growth for each of the previous five (5) years by unit type at each | |
27 | affordability level, by unit type. | |
28 | (O) A reporting of municipal healthy housing stock by unit type and number of bedrooms | |
29 | and provide an assessment of the state's existing housing stock and enumerate any risks to the public | |
30 | health from that housing stock, including, but not limited to, the presence of lead, mold, safe | |
31 | drinking water, disease vectors (insects and vermin), and other conditions which are an identifiable | |
32 | health detriment. Additionally, the report shall provide the percentage of the prevalence of health | |
33 | risks by age of the stock for each community by unit type and number of bedrooms. | |
34 | (P) A recommendation shall be included with the report required under this section which | |
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1 | shall provide consideration to any and all populations, ethnicities, income levels, and other relevant | |
2 | demographic criteria determined by the deputy secretary, and with regard to any and all of the | |
3 | criteria enumerated elsewhere in the report separately or in combination, provide recommendations | |
4 | to resolve any issues which provide an impediment to the development of housing, including | |
5 | specific data and evidence in support for the recommendation. All data and methodologies used to | |
6 | present evidence are subject to review and approval of the chief of revenue analysis, and that | |
7 | approval shall include an attestation of approval by the chief to be included in the report. | |
8 | (b) In this capacity, the office shall: | |
9 | (1) Lead or assist state departments and coordinate business permitting processes in order | |
10 | to: | |
11 | (i) Improve the economy, efficiency, coordination, and quality of the business climate in | |
12 | the state; | |
13 | (ii) Design strategies and implement best practices that foster economic development and | |
14 | growth of the state's economy; | |
15 | (iii) Maximize and leverage funds from all available public and private sources, including | |
16 | federal financial participation, grants and awards; | |
17 | (iv) Increase public confidence by conducting customer centric operations whereby | |
18 | commercial enterprise are supported and provided programs and services that will grow and nurture | |
19 | the Rhode Island economy; and | |
20 | (v) Be the state's lead agency for economic development. | |
21 | (2) Provide oversight and coordination of all housing initiatives in the state of Rhode | |
22 | Island. | |
23 | (c) The office shall include the office of regulatory reform and other administration | |
24 | functions which promote, enhance or regulate various service and functions in order to promote the | |
25 | reform and improvement of the regulatory function of the state. | |
26 | SECTION 3. Chapter 42-128 of the General Laws entitled "Housing Resources Act of | |
27 | 1998" is hereby amended by adding thereto the following sections: | |
28 | 42-128-2.1. Housing Production Fund. | |
29 | (a) There is hereby established a restricted receipt account within the general fund of the | |
30 | state, to be known as the housing production fund. Funds from this account shall be administered | |
31 | by the Rhode Island housing and mortgage finance corporation, subject to program and reporting | |
32 | guidelines adopted by the coordinating committee of the Rhode Island housing resources | |
33 | commission for housing production initiatives, including: | |
34 | (1) Financial assistance by loan, grant, or otherwise, for the planning, production, or | |
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1 | preservation of affordable housing in Rhode Island for households earning not more than eighty | |
2 | percent (80%) of area median income; and | |
3 | (2) Technical and financial assistance for cities and towns to support increased local | |
4 | housing production, including by reducing regulatory barriers and through the housing incentives | |
5 | for municipalities program; and | |
6 | (b) In administering the housing production fund, the Rhode Island housing and mortgage | |
7 | finance corporation shall give priority to households either exiting homelessness or earning not | |
8 | more than thirty percent (30%) of area median income. | |
9 | SECTION 4. Sections 42-128-2 and 42-128-11 Chapter 42-128 of the General Laws | |
10 | entitled "Housing Resources Act of 1998" are hereby amended to read as follows. | |
11 | 42-128-2. Rhode Island housing resources agency created. | |
12 | There is created within the executive department a housing resources agency with the | |
13 | following purposes, organization, and powers: | |
14 | (1) Purposes: | |
15 | (i) To provide coherence to the housing programs of the state of Rhode Island and its | |
16 | departments, agencies, commissions, corporations, and subdivisions. | |
17 | (ii) To provide for the integration and coordination of the activities of the Rhode Island | |
18 | housing and mortgage finance corporation and the Rhode Island housing resources commission. | |
19 | (2) Coordinating committee – Created – Purposes and powers: | |
20 | (i) The coordinating committee of the housing resources agency shall be comprised of the | |
21 | chairperson of the Rhode Island housing and mortgage finance corporations; the chairperson of the | |
22 | Rhode Island housing resources commission; the director of the department of administration, or | |
23 | the designee of the director; and the executive director of the Rhode Island housing and mortgage | |
24 | finance corporation. The chairperson of the Rhode Island housing resources commission shall be | |
25 | chairperson of the coordinating committee. | |
26 | (ii) The coordinating committee shall: | |
27 | (a) develop and shall implement, with the approval of the Rhode Island housing and | |
28 | mortgage finance corporation and the Rhode Island housing resources commission, a memorandum | |
29 | of agreement describing the fiscal and operational relationship between the Rhode Island housing | |
30 | and mortgage finance corporation and the Rhode Island housing resources commission and shall | |
31 | define which programs of federal assistance will be applied for on behalf of the state by the Rhode | |
32 | Island housing and mortgage finance corporation and the Rhode Island housing resources | |
33 | commission. | |
34 | (b) is authorized and empowered to negotiate and to enter into contracts and cooperative | |
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1 | agreements with agencies and political subdivisions of the state, not-for-profit corporations, for | |
2 | profit corporations, and other partnerships, associations and persons for any lawful purpose | |
3 | necessary and desirable to effect the purposes of this chapter, subject to the provisions of chapter 2 | |
4 | of title 37 as applicable. | |
5 | (3) There is hereby established a restricted receipt account within the general fund of the | |
6 | state. Funds from this account shall be used to provide for housing and homelessness initiatives | |
7 | including housing production, the lead hazard abatement program, housing rental subsidy, housing | |
8 | retention assistance, and homelessness services and prevention assistance with priority given to | |
9 | homeless veterans and homeless prevention assistance and housing retention assistance with | |
10 | priority to veterans. | |
11 | 42-128-11. Executive director – Employees. | |
12 | The commission governor shall appoint from qualified candidates, with the advice of the | |
13 | coordinating committee, an executive director, who shall not be subject to the provisions of chapter | |
14 | 4 of title 36, and who shall serve as the state housing commissioner and may also serve in the | |
15 | executive office of commerce as the deputy secretary of housing. The commission shall set the | |
16 | compensation and the terms of employment of the executive director. The commission shall also | |
17 | cause to be employed such staff and technical and professional consultants as may be required to | |
18 | carry out the powers and duties set forth in this chapter. All staff, including the executive director, | |
19 | may be secured through a memorandum of agreement with the Rhode Island housing and mortgage | |
20 | finance corporation, or any other agency or political subdivision of the state with the approval of | |
21 | the relevant agency or political subdivision, as provided for in § 42-128-2(2)(ii). Any person who | |
22 | is in the civil service and is transferred to the commission may retain civil service status. | |
23 | SECTION 5. Title 42 of the General Laws entitled "State Affairs and Government" is | |
24 | hereby amended by adding thereto the following chapter: | |
25 | CHAPTER 42-128.4 | |
26 | HOUSING INCENTIVES FOR MUNICIPALITIES | |
27 | 42-128.4. Short title. | |
28 | This chapter shall be known as "Housing Incentives for Municipalities." | |
29 | 42-128.4-2. Establishment of program. | |
30 | There is hereby established a housing incentive for municipalities program to be | |
31 | administered as set forth in section 42-128-2.1, in consultation with the division of statewide | |
32 | planning and the Rhode Island housing and mortgage finance corporation. | |
33 | 42-128.4-4. Purposes. | |
34 | The coordinating committee is authorized and empowered to carry out the program for the | |
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1 | following purposes: | |
2 | (a) To foster and maintain strong collaborations with municipalities in the state. | |
3 | (b) To support and assist municipalities in promoting housing production that adequately | |
4 | meets the needs of Rhode Island's current and future residents. | |
5 | (c) To make diverse, high-quality, and accessible housing options readily available to | |
6 | residents within their local communities. | |
7 | (d) To enable residents to live near convenient public transit and other commercial and | |
8 | cultural resources. | |
9 | (e) To make development decisions fair, predictable, and cost effective. | |
10 | (f) To foster distinctive, attractive, and resilient communities, while preserving the state's | |
11 | open space, farmland, and natural beauty. | |
12 | 42-128.4-4. Definitions. | |
13 | As used in this chapter: | |
14 | (1) "The coordinating committee" means the Rhode Island housing resources coordinating | |
15 | committee established pursuant to § 42-128-2(2). | |
16 | (2) "Eligible locations'' means an area designated by the coordinating committee as a | |
17 | suitable site for a housing incentive district by virtue of its infrastructure, existing underutilized | |
18 | facilities, or other advantageous qualities, including (i) proximity to public transit centers, including | |
19 | commuter rail, bus, and ferry terminals; or (ii) proximity to areas of concentrated development, | |
20 | including town and city centers or other existing commercial districts. | |
21 | (3) "Eligible student" means an individual that (i) lives in a newly constructed dwelling | |
22 | unit within a housing incentive district, to the extent that the unit could not have been realized under | |
23 | the underlying zoning, and (ii) attends a school in the city or town. | |
24 | (4) "School impact offset payments" means a payment to a city or town to help offset | |
25 | increased municipal costs of educating eligible students. | |
26 | (5) "Housing incentive district" means an overlay district adopted by a city or town | |
27 | pursuant to this chapter. A housing incentive district is intended to encourage residential | |
28 | development and must permit minimum residential uses. A housing incentive district may | |
29 | accommodate uses complimentary to the primary residential uses, as deemed appropriate by the | |
30 | adopting city or town; however, the majority of development on lots within a housing incentive | |
31 | district must be residential. Land development plans within a housing incentive district shall be | |
32 | treated as minor land development plans, as defined by § 45-23-32, unless otherwise specified by | |
33 | ordinance. | |
34 | 42-128.4-5. Adoption of housing incentive districts. | |
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1 | (a) In its zoning ordinance, a city or town may adopt a housing incentive district in any | |
2 | eligible location. | |
3 | (b) The adoption, amendment, or repeal of such ordinance shall be in accordance with the | |
4 | provisions of chapter 45-24. | |
5 | (c) A housing incentive district shall comply with this chapter and any minimum | |
6 | requirements established by the coordinating committee. | |
7 | (d) The zoning ordinance for each housing incentive district shall specify the procedure for | |
8 | land development and subdivision review within the district in accordance with this chapter and | |
9 | the regulations of the coordinating committee. | |
10 | (e) Nothing in this chapter shall affect a city or town's authority to amend its zoning | |
11 | ordinances under chapter 45-24. | |
12 | 42-128.4-6. Assistance to municipalities. | |
13 | (a) The coordinating committee is authorized and empowered, at its discretion, to provide | |
14 | all manner of support and assistance to municipalities in connection with fostering local housing | |
15 | production, including, but not limited to: | |
16 | (1) Providing technical assistance for the preparation, adoption, or implementation of laws, | |
17 | regulations, or processes related to residential development; and | |
18 | (2) Authorizing the Rhode Island housing and mortgage finance corporation to issue school | |
19 | impact offset payments to participating municipalities. | |
20 | 42-128.4-7. Rules and regulations - Reports. | |
21 | (a) The coordinating committee is hereby authorized to promulgate such rules and | |
22 | regulations as are necessary to fulfill the purposes of this chapter, including, but not limited to, | |
23 | provisions relating to: application criteria; eligible locations for housing incentive districts; | |
24 | minimum requirements for housing incentive districts; eligible students for the calculation | |
25 | of school impact offset payments; and the amount and method of payment to cities and towns | |
26 | for school impact offset payments. | |
27 | (b) The coordinating committee shall include in its annual report information on the | |
28 | commitment and disbursement of funds allocated under the program. The report shall be provided | |
29 | to the governor, the secretary of commerce, speaker of the house of representatives and the | |
30 | president of the senate. | |
31 | 42-128.4-8. Program integrity. | |
32 | Program integrity being of paramount importance, the coordinating committee shall | |
33 | establish procedures to ensure ongoing compliance with the terms and conditions of the program | |
34 | established herein, including procedures to safeguard the expenditure of public funds and to ensure | |
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1 | that the funds further the purposes of the program. | |
2 | 42-128.4-9. Cooperation. | |
3 | Any department, agency, council, board, or other public instrumentality of the state shall | |
4 | cooperate with the coordinating committee in relation to the implementation, execution and | |
5 | administration of the program created under this chapter. | |
6 | SECTION 6. Section 44-25-1 of the General Laws in Chapter 44-25 entitled "Real Estate | |
7 | Conveyance Tax" is hereby amended to read as follows: | |
8 | 44-25-1. Tax imposed – Payment – Burden. | |
9 | (a) There is imposed, on each deed, instrument, or writing by which any lands, tenements, | |
10 | or other realty sold is granted, assigned, transferred, or conveyed to, or vested in, the purchaser or | |
11 | purchasers, or any other person or persons, by his or her or their direction, or on any grant, | |
12 | assignment, transfer, or conveyance or such vesting, by such persons which has the effect of making | |
13 | any real estate company an acquired real estate company, when the consideration paid exceeds one | |
14 | hundred dollars ($100), a tax at the rate of two dollars and thirty cents ($2.30) for each five hundred | |
15 | dollars ($500), or fractional part of it, that is paid for the purchase of property or the interest in an | |
16 | acquired real estate company (inclusive of the value of any lien or encumbrance remaining at the | |
17 | time of the sale, grant, assignment, transfer or conveyance or vesting occurs, or in the case of an | |
18 | interest in an acquired real estate company, a percentage of the value of such lien or encumbrance | |
19 | equivalent to the percentage interest in the acquired real estate company being granted, assigned, | |
20 | transferred, conveyed or vested), which. The tax is payable at the time of making, the execution, | |
21 | delivery, acceptance or presentation for recording of any instrument affecting such transfer grant, | |
22 | assignment, transfer, conveyance or vesting. In the absence of an agreement to the contrary, the tax | |
23 | shall be paid by the grantor, assignor, transferor or person making the conveyance or vesting. | |
24 | (b) In addition to the tax imposed by paragraph (a), there is imposed, on each deed, | |
25 | instrument, or writing by which any residential real property sold is granted, assigned, transferred, | |
26 | or conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or | |
27 | her or their direction, or on any grant, assignment, transfer, or conveyance or such vesting, by such | |
28 | persons which has the effect of making any real estate company an acquired real estate company, | |
29 | when the consideration paid exceeds eight hundred thousand dollars ($800,000), a tax at the rate of | |
30 | two dollars and thirty cents ($2.30) for each five hundred dollars ($500), or fractional part of it, of | |
31 | the consideration in excess of eight hundred thousand dollars ($800,000) that is paid for the | |
32 | purchase of property or the interest in an acquired real estate company (inclusive of the value of | |
33 | any lien or encumbrance remaining at the time of the sale, grant, assignment, transfer or conveyance | |
34 | or vesting occurs, or in the case of an interest in an acquired real estate company, a percentage of | |
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1 | the value of such lien or encumbrance equivalent to the percentage interest in the acquired real | |
2 | estate company being granted, assigned, transferred, conveyed or vested). The tax imposed by this | |
3 | paragraph shall be paid at the same time and in the same manner as the tax imposed by paragraph | |
4 | (a). | |
5 | (bc) In the event no consideration is actually paid for the lands, tenements, or realty, the | |
6 | instrument or interest in an acquired real estate company of conveyance shall contain a statement | |
7 | to the effect that the consideration is such that no documentary stamps are required. | |
8 | (c) The tax administrator shall contribute | |
9 | (d) The tax shall be distributed as follows: | |
10 | (i) With respect to the tax imposed by paragraph (a): the tax administrator shall contribute | |
11 | to the distressed community relief program the sum of thirty cents ($.30) per two dollars and thirty | |
12 | cents ($2.30) of the face value of the stamps to be distributed pursuant to § 45-13-12, and to the | |
13 | housing resources commission restricted receipts account the sum of thirty cents ($.30) per two | |
14 | dollars and thirty cents ($2.30) of the face value of the stamps. Funds will be administered by the | |
15 | office of housing and community development, through the housing resources commission. The | |
16 | state shall retain sixty cents ($.60) for state use. The balance of the tax shall be retained by the | |
17 | municipality collecting the tax. | |
18 | (ii) With respect to the tax imposed by paragraph (b): the tax administrator shall contribute | |
19 | the entire tax to the housing production fund established pursuant to § 42-128-2.1. | |
20 | (iii) Notwithstanding the above, in the case of the tax on the grant, transfer, assignment or | |
21 | conveyance or vesting with respect to an acquired real estate company, the tax shall be collected | |
22 | by the tax administrator and shall be distributed to the municipality where the real estate owned by | |
23 | the acquired real estate company is located provided, however, in the case of any such tax collected | |
24 | by the tax administrator, if the acquired real estate company owns property located in more than | |
25 | one municipality, the proceeds of the tax shall be allocated amongst said municipalities in the | |
26 | proportion the assessed value of said real estate in each such municipality bears to the total of the | |
27 | assessed values of all of the real estate owned by the acquired real estate company in Rhode Island. | |
28 | Provided, however, in fiscal years 2004 and 2005, from the proceeds of this tax, the tax | |
29 | administrator shall deposit as general revenues the sum of ninety cents ($.90) per two dollars and | |
30 | thirty cents ($2.30) of the face value of the stamps. The balance of the tax on the purchase of | |
31 | property shall be retained by the municipality collecting the tax. The balance of the tax on the | |
32 | transfer with respect to an acquired real estate company, shall be collected by the tax administrator | |
33 | and shall be distributed to the municipality where the property for which interest is sold is | |
34 | physically located. Provided, however, that in the case of any tax collected by the tax administrator | |
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1 | with respect to an acquired real estate company where the acquired real estate company owns | |
2 | property located in more than one municipality, the proceeds of the tax shall be allocated amongst | |
3 | the municipalities in proportion that the assessed value in any such municipality bears to the | |
4 | assessed values of all of the real estate owned by the acquired real estate company in Rhode Island. | |
5 | (d) For purposes of this section, the term "acquired real estate company" means a real estate | |
6 | company that has undergone a change in ownership interest if (i) such change does not affect the | |
7 | continuity of the operations of the company; and (ii) the change, whether alone or together with | |
8 | prior changes has the effect of granting, transferring, assigning or conveying or vesting, transferring | |
9 | directly or indirectly, 50% or more of the total ownership in the company within a period of three | |
10 | (3) years. For purposes of the foregoing subsection (ii) hereof, a grant, transfer, assignment or | |
11 | conveyance or vesting, shall be deemed to have occurred within a period of three (3) years of | |
12 | another grant(s), transfer(s), assignment(s) or conveyance(s) or vesting(s) if during the period the | |
13 | granting, transferring, assigning or conveying or party provides the receiving party a legally binding | |
14 | document granting, transferring, assigning or conveying or vesting said realty or a commitment or | |
15 | option enforceable at a future date to execute the grant, transfer, assignment or conveyance or | |
16 | vesting. | |
17 | (e) A real estate company is a corporation, limited liability company, partnership or other | |
18 | legal entity which meets any of the following: | |
19 | (i) Is primarily engaged in the business of holding, selling or leasing real estate, where 90% | |
20 | or more of the ownership of said real estate is held by 35 or fewer persons and which company | |
21 | either (a) derives 60% or more of its annual gross receipts from the ownership or disposition of real | |
22 | estate; or (b) owns real estate the value of which comprises 90% or more of the value of the entity's | |
23 | entire tangible asset holdings exclusive of tangible assets which are fairly transferrable and actively | |
24 | traded on an established market; or | |
25 | (ii) 90% or more of the ownership interest in such entity is held by 35 or fewer persons and | |
26 | the entity owns as 90% or more of the fair market value of its assets a direct or indirect interest in | |
27 | a real estate company. An indirect ownership interest is an interest in an entity 90% or more of | |
28 | which is held by 35 or fewer persons and the purpose of the entity is the ownership of a real estate | |
29 | company. | |
30 | (f) In the case of a grant, assignment, transfer or conveyance or vesting which results in a | |
31 | real estate company becoming an acquired real estate company, the grantor, assignor, transferor, or | |
32 | person making the conveyance or causing the vesting, shall file or cause to be filed with the division | |
33 | of taxation, at least five (5) days prior to the grant, transfer, assignment or conveyance or vesting, | |
34 | notification of the proposed grant, transfer, assignment, or conveyance or vesting, the price, terms | |
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1 | and conditions of thereof, and the character and location of all of the real estate assets held by real | |
2 | estate company and shall remit the tax imposed and owed pursuant to subsection (a) hereof. Any | |
3 | such grant, transfer, assignment or conveyance or vesting which results in a real estate company | |
4 | becoming an acquired real estate company shall be fraudulent and void as against the state unless | |
5 | the entity notifies the tax administrator in writing of the grant, transfer, assignment or conveyance | |
6 | or vesting as herein required in subsection (f) hereof and has paid the tax as required in subsection | |
7 | (a) hereof. Upon the payment of the tax by the transferor, the tax administrator shall issue a | |
8 | certificate of the payment of the tax which certificate shall be recordable in the land evidence | |
9 | records in each municipality in which such real estate company owns real estate. Where the real | |
10 | estate company has assets other than interests in real estate located in Rhode Island, the tax shall | |
11 | be based upon the assessed value of each parcel of property located in each municipality in the state | |
12 | of Rhode Island. | |
13 | SECTION 7. Section 44-25-2 of the General Laws in Chapter 44-25 entitled "Real Estate | |
14 | Conveyance Tax" is hereby amended to read as follows: | |
15 | 44-25-2. Exemptions. | |
16 | (a) The tax imposed by this chapter does not apply to any instrument or writing given to | |
17 | secure a debt. | |
18 | (b) The tax imposed by this chapter does not apply to any deed, instrument, or writing | |
19 | wherein the United States, the state of Rhode Island, or its political subdivisions are designated the | |
20 | grantor. | |
21 | (c) The tax imposed by this chapter does not apply to any deed, instrument, or writing that | |
22 | has or shall be executed, delivered, accepted, or presented for recording in furtherance of, or | |
23 | pursuant to, that certain master property conveyance contract dated December 29, 1982, and | |
24 | recorded in the land evidence records of the city of Providence on January 27, 1983, at 1:30 p.m. | |
25 | in book 1241 at page 849, and relating to the capital center project in the city of Providence. | |
26 | (d) The qualified sale of a mobile or manufactured home community to a resident-owned | |
27 | organization as defined in § 31-44-1 is exempt from the real estate conveyance tax imposed under | |
28 | this chapter. | |
29 | (e) No transfer tax or fee shall be imposed by a land trust or municipality upon the | |
30 | acquisition of real estate by the state of Rhode Island or any of its political subdivisions. | |
31 | (f) Nothing in § 44-25-1 shall be construed to impose a tax upon any grant, assignment, | |
32 | transfer, conveyance or vesting of any interest, direct or indirect, among owners, members or | |
33 | partners in any real estate company with respect to an affordable housing development where: | |
34 | (i) The housing development has been financed in whole or in part with federal low-income | |
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1 | housing tax credits pursuant to § 42 of the Internal Revenue Code; or | |
2 | (ii) At least one of the owners, members or partners of the company is a Rhode Island | |
3 | nonprofit corporation or an entity exempt from tax under § 501(c)(3) of the Internal Revenue Code, | |
4 | or is owned by a Rhode Island nonprofit corporation or an entity that is exempt from tax under § | |
5 | 501(c)(3) of the Internal revenue Code, and the housing development is subject to a recorded deed | |
6 | restriction or declaration of land use restrictive covenants in favor of the Rhode Island housing and | |
7 | mortgage finance corporation, the state of Rhode Island housing resources commission, the federal | |
8 | home loan bank or any of its members, or any other state or local government instrumentality under | |
9 | an affordable housing program. No such real estate company shall be an acquired real estate | |
10 | company under this section. | |
11 | SECTION 8. Title 42 of the General Laws entitled "STATE AFFAIRS AND | |
12 | GOVERNMENT" is hereby amended by adding thereto the following chapter: | |
13 | CHAPTER 160 | |
14 | RHODE ISLAND PAY FOR SUCCESS ACT | |
15 | 42-160-1. Short title. | |
16 | This act shall be known and may be cited as the "Rhode Island Pay for Success Act." | |
17 | 42-160-2. Legislative findings. | |
18 | The general assembly hereby finds and declares as follows: | |
19 | (1) Pay for success contracts are executed detailing the outcomes, associated repayment | |
20 | and evaluation process to be conducted by a third party. The proceeds are disbursed to a nonprofit | |
21 | organization(s) that will execute the intervention delivering services and other resources, such as | |
22 | housing, to the target population. An independent evaluator monitors the outcomes of the | |
23 | intervention to determine if success was met. If the intervention improves financial and social | |
24 | outcomes in accordance with established metrics, the government, as outcome payor, pays back the | |
25 | investors with interest using a portion of the savings accrued from the successful outcomes. If the | |
26 | evaluator determines that success was not met, meaning there is no improvement in financial or | |
27 | social outcomes, the investors lose money. | |
28 | (2) In 2016 the United States Department of Justice (DOJ) and the United States | |
29 | Department of Housing and Urban Development (HUD) awarded funding to the Rhode Island | |
30 | Coalition to End Homelessness to pursue a pay for success social impact bond in Rhode Island | |
31 | focusing on housing and supportive services for persons experiencing homelessness who are high | |
32 | utilizers of the health care and justice systems. The pilot program will leverage eight hundred | |
33 | seventy-five thousand dollars ($875,000) in outcome payment funding from the HUD/DOJ grant | |
34 | as well as the intervention and independent evaluation process described in the grant agreement. | |
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1 | 42-160-3. Annual reporting. | |
2 | (1) The executive office, in collaboration with the Rhode Island Coalition to End | |
3 | Homelessness, shall provide yearly progress reports to the general assembly beginning no later than | |
4 | January 30, 2022, and annually thereafter until January 30, 2027. These reports will include | |
5 | recommendations on a proposed structure for entering into pay for success contracts, for | |
6 | administering the program, and for any and all matters related thereto that the executive office | |
7 | deems necessary to administer future pay for success projects at the conclusion of the pilot program | |
8 | in 2026. As a condition of this project, HUD requires that a third party conduct a transparent and | |
9 | rigorous evaluation of the intervention to determine whether the outcomes have indeed achieved | |
10 | success. The evaluation results will be reported yearly to the governor and general assembly. | |
11 | 42-160-4. Definitions. | |
12 | For the purpose of this chapter: | |
13 | (a) "Performance targets" means the level of performance, as measured by an independent | |
14 | evaluator, which represent success. Success is defined in the pay for success contract. | |
15 | (b) "Independent evaluator" means an independent entity selected by the state whose role | |
16 | includes assessing and reporting on the achievement of performance targets at the frequency | |
17 | required in the pay for success contract. | |
18 | (c) "Success payments" refer to the payments that the state will make only if contractual | |
19 | performance targets are achieved as determined by the independent evaluator and approved by the | |
20 | office of management and budget. | |
21 | (d) "Pay for success contracts" are contracts designed to improve outcomes and lower costs | |
22 | for contracted government services that are subject to the following requirements: | |
23 | (1) A determination that the contract will result in significant performance improvements | |
24 | and budgetary savings across all impacted agencies if the performance targets are achieved; | |
25 | (2) A requirement that a substantial portion of any payment be conditioned on the | |
26 | achievement of specific outcomes based on defined performance targets; | |
27 | (3) An objective process by which an independent evaluator will determine whether the | |
28 | performance targets have been achieved; | |
29 | (4) A calculation of the amount and timing of payments that would be earned by the service | |
30 | provider during each year of the agreement if performance targets are achieved as determined by | |
31 | the independent evaluator; and | |
32 | (5) Payments shall only be made if performance targets are achieved. Additionally, the | |
33 | success payment made pursuant to this chapter shall not exceed ten percent (10%) more than actual | |
34 | costs incurred by program intermediary. | |
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1 | (1) "Coordinated entry system (CES)" means the partnership of all homeless service | |
2 | providers in the state through this initiative of the Rhode Island continuum of care. CES manages | |
3 | all diversion/entry to the shelter system through the coordinated entry hotline and manages the | |
4 | permanent housing placement part of the program, once persons are in a shelter or are living on the | |
5 | street. | |
6 | (2) "Executive office" means the Rhode Island executive office of health and human | |
7 | services. | |
8 | (3) "Homeless management information system (HMIS)" means the database used to | |
9 | collect information in order to track and report on the scope of homelessness prevention/assistance | |
10 | and human service needs across the Rhode Island continuum of care (COC) as well as individually | |
11 | at each organization. The Rhode Island Coalition to End Homelessness is the current HMIS state | |
12 | lead. | |
13 | (4) "Homelessness" means the category 1 and category 4 definitions outline by HUD: | |
14 | (i) Category 1-Literally homeless: the situation of an individual or family lacking a fixed, | |
15 | regular, and adequate nighttime residence, meaning: | |
16 | (A) Has a primary nighttime residence that is a public or private place not meant for human | |
17 | habitation; | |
18 | (B) Is living in a publicly or privately operated shelter designated to provide temporary | |
19 | living arrangements (including congregate shelters, transitional housing, and hotels and motels paid | |
20 | for by charitable organizations or by federal, state and local government programs); or | |
21 | (C) Is exiting an institution where he or she has resided for ninety (90) days or less and | |
22 | who resided in an emergency shelter or place not meant for human habitation immediately before | |
23 | entering that institution. | |
24 | (ii) Category 4-Fleeing/attempting to flee domestic violence: Any individual or family | |
25 | who: | |
26 | (A) Is fleeing, or is attempting to flee, domestic violence; | |
27 | (B) Has no other residence; and | |
28 | (C) Lacks the resources or support networks to obtain other permanent housing. | |
29 | (5) "Nonprofit organization" means a nonprofit organization that is exempt from federal | |
30 | taxation pursuant to § 501(c)(3) of the federal internal revenue code, 26 U.S.C. § 501(c)(3). | |
31 | (6) "Outcome payor" means the the Rhode Island state government. | |
32 | (7) "Permanent supportive housing (PSH)" means a permanent deeply subsidized unit, | |
33 | tenant or project based subsidy, with supportive services, generally for persons experiencing | |
34 | homelessness for long periods of time who also have other significant challenges such as disability | |
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1 | or mental illness. | |
2 | (8) "Social impact bond", "pay for success bond" or "bond" means a contract between the | |
3 | public and private sectors in which a commitment is made to pay for improved financial and social | |
4 | outcomes that result in public sector savings. These contract agreements are funded by | |
5 | appropriation. | |
6 | (9) "Target population" means highly vulnerable persons that experience long-term | |
7 | homelessness and incur significant costs within the criminal justice, shelter, and/or health care | |
8 | systems, likely related to their housing instability, with an estimated average per person cost of | |
9 | Medicaid claims for adults in shelter, top twenty-five (25) clients, totaling two hundred twenty- | |
10 | nine thousand, six hundred ninety-five dollars and forty-four cents ($229,695.44), as per the Rhode | |
11 | Island Medicaid and HMIS data match for adults in shelter. Eligibility will be confirmed by data | |
12 | matching, case conferencing, and coordination with health care providers and the coordinated entry | |
13 | system (CES); data sources will be provided by the department of corrections, executive office of | |
14 | health and human services, and the Rhode Island homeless management information system. | |
15 | (10) "Program intermediary" means a firm that contracts with a state agency to establish | |
16 | and delivery a service or program intervention by doing any of the following: | |
17 | (i) Delivering or contracting for relevant services or outcomes; | |
18 | (ii) Raising capital to finance the delivery of services or outcomes; | |
19 | (iii) Providing ongoing project management and investor relations for the social impact | |
20 | funding instrument. | |
21 | 42-160-5. Pilot program established. | |
22 | There is established a five (5) year pay for success pilot program to be administered by the | |
23 | Rhode Island executive office of health and human services. The pilot will follow the proposal | |
24 | outlined in the 2016 pay for success grant proposal to HUD and 2017 feasibility study. The pay for | |
25 | success project will provide a housing and supportive services intervention (PSH) for one hundred | |
26 | twenty-five (125) persons in Rhode Island experiencing homelessness who are high utilizers of the | |
27 | health care and justice systems. The pilot program will leverage eight hundred seventy-five | |
28 | thousand dollars ($875,000) of HUD/DOJ grant funds. Contract agreements with the executive | |
29 | office of health and human services pursuant to this chapter shall not exceed one million five | |
30 | hundred thousand dollars ($1,500,000) per fiscal year or six million dollars ($6,000,000) in the | |
31 | aggregate over the five (5) years of the pilot program, as determined by the department; provided, | |
32 | no agreements shall be entered by the department after July 1, 2026, without further authorization | |
33 | by the general assembly. | |
34 | 42-160-6. Establishment of restricted receipt account. | |
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1 | There is hereby created within the general fund of the state a restricted receipt account | |
2 | entitled or to be known as "Pay for Success." The account shall be housed within the budget of the | |
3 | executive office of health and human services and shall be utilized to record all receipts and | |
4 | program expenditures associated with this chapter. All such monies deposited shall be exempt from | |
5 | the indirect cost recovery provisions of § 35-4-27. | |
6 | SECTION 9. Section 6 of this article shall take effect on January 1, 2022. All other sections | |
7 | of this article shall take effect upon passage. | |
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