2023 -- H 6168

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LC002564

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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, Shekarchi, Morales, Boylan, Cruz, Potter,
Alzate, and Felix

     Date Introduced: March 17, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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

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CHAPTER 34.35

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HOUSING PRODUCTION REVOLVING FUND

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     42-34.35-1. Short title.

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

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Fund Act.”

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

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

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

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

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

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housing more affordable.

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

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

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     (2) Financing real estate projects by public developers to include public housing authorities

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and other public agencies;

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     (c) The fund shall consist of:

 

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

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($50,000,000);

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

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

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

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

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limited to, gifts, grants or donations.

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     42-34.35-3. Development of housing.

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

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

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program shall solicit applications from public developers to include public housing authorities and

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other public agencies for the construction and ownership of housing units. A developer seeking

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

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

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

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household size; and

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

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

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adjusted for household size.

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     42-34.35-4. Rules and regulations.

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

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

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the provisions of this chapter.

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     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

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

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

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

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     This act would take effect upon passage.

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