2023 -- H 5980

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LC002093

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- HOUSING PRODUCTION

REVOLVING FUND

     Introduced By: Representatives Speakman, Kislak, Potter, Cruz, Morales, Felix, and
Slater

     Date Introduced: March 01, 2023

     Referred To: House 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 34.35

HOUSING PRODUCTION FUND

     42-34.35-1. Short title.

     This chapter shall be known as and may be cited as the “Housing Production Revolving

Fund Act.”

     42-34.35-2. Establishment of the fund - Uses.

     (a) The department of housing is authorized to issue bonds in the amount of fifty million

dollars ($50,000,000) (the "housing bonds”), with a maturity date not to exceed twenty (20) years,

to create the housing production revolving fund (the "fund"), in order to further the goals set forth

in this chapter and to promote, among other purposes, the development of housing in order to make

housing more affordable.

     (b) The uses of the fund shall include, but are not limited to:

     (1) Providing debt service for the housing bonds; and

     (2) Financing real estate projects by real estate developers;

     (c) The fund shall consist of:

     (1) Proceeds from the issuance of housing bonds in the amount of fifty million dollars

($50,000,000);

     (2) Annual appropriation from the general assembly for debt service of the housing bonds

not to exceed five hundred thousand dollars ($500,000) per year;

     (3) Repayments of principal and interest from loans made from the fund; and

     (4) Any other money made available to the fund from other sources including, but not

limited to, gifts, grants or donations.

     42-34.35-3. Development of housing.

     The department of housing shall formulate a program for the development of housing units

where a portion of the housing units are set aside from housing projects to ensure affordability. The

program shall solicit applications from real estate developers for the construction of housing units.

A developer seeking assistance under this chapter shall be required to have at least:

     (1) Twenty percent (20%) of the development of housing units to be affordable housing for

households earning fifty percent (50%) or less of the area median income (AMI), adjusted for

household size; and

     (2) An additional ten percent (10%) of the development of housing units to be affordable

housing for households earning eighty percent (80%) or less of the area median income (AMI)

adjusted for household size.

     42-34.35-4. Rules and regulations.

     The department of housing shall be the administrator of the fund and shall promulgate rules

and regulations deemed necessary for the administration of the fund and for the implementation of

the provisions of this chapter.

     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 -- HOUSING PRODUCTION

REVOLVING FUND

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     This act would create the housing production revolving fund through the issuance of fifty

million dollars ($50,000,000) in housing bonds by the department of housing in order to provide

affordable housing for low-income households and provide a five hundred thousand dollar

($500,000) annual appropriation from the general assembly.

     This act would take effect upon passage.

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