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art.014/7/014/6/014/5/014/4/014/3/014/2/016/1
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ARTICLE 14 AS AMENDED
RELATING TO HOUSING

     SECTION 1. Chapter 42-51 of the General Laws entitled "Governor's Commission on
Disabilities" is hereby amended by adding thereto the following section:
     42-51-13. Livable home modification program.
     (a) There is hereby established the livable home modification program for home
modification and accessibility enhancements to construct, retrofit, and/or renovate residences to
allow individuals with significant disabilities to remain in community settings.
     (b) Any eligible resident who retrofits or hires an individual to retrofit an existing
residence;, provided that, such retrofitting meets the qualification criteria and guidelines as
established by the commission, shall be eligible for a livable home modification grant of fifty
percent (50%) of the total amount spent, not to exceed an amount annually appropriated by the
commission in accordance with § 35-3-24.
     (c) The commission is authorized and directed to issue regulations regarding:
     (1) Income eligibility and other qualifications for a grant;
     (2) Application guidelines;
     (3) The maximum reimbursement;
     (4) Filing claims for reimbursement; and
     (5) Appeal procedures for applicants who are determined to be ineligible.
     (d) By August 15 of each year, the commission shall submit an annual report to the
governor, speaker of the house, senate president, and chairpersons of the house and senate finance
committees for the period from July 1 to June 30 on the actual;:
     (1) Number of grants issued to qualifying individuals;
     (2) Number of applications which who that did not qualify;
     (3) Total dollar amount of grants issued;
     (4) Average dollar amount of the grants issued;
     (5) Number of retrofits by accessibility features; and
     (6) Prognosis for the individual if the retrofit had not been made which that which shall
determine:
     (i) Increased likelihood of falls and other related emergency room, hospital, and/or
rehabilitation expenses;
     (ii) Loss of independence; and
     (iii) Move into a long-term-care facility.
     SECTION 2. Section 42-64.19-3 of the General Laws in Chapter 42-64.19 entitled
"Executive Office of Commerce" is hereby amended to read as follows:
     42-64.19-3. Executive office of commerce.
     (a) There is hereby established within the executive branch of state government an
executive office of commerce effective February 1, 2015, to serve as the principal agency of the
executive branch of state government for managing the promotion of commerce and the economy
within the state and shall have the following powers and duties in accordance with the following
schedule:
     (1) On or about February 1, 2015, to operate functions from the department of business
regulation;
     (2) On or about April 1, 2015, to operate various divisions and functions from the
department of administration;
     (3) On or before September 1, 2015, to provide to the Senate and the House of
Representatives a comprehensive study and review of the roles, functions, and programs of the
department of administration and the department of labor and training to devise recommendations
and a business plan for the integration of these entities with the office of the secretary of commerce.
The governor may include such recommendations in the Fiscal Year 2017 budget proposal.; and
     (4) On or before July 1, 2021, to provide for the hiring of a deputy secretary of commerce
and housing, who shall report directly to the secretary of commerce. The deputy secretary of
commerce and housing shall:
     (i) Prior to hiring, have completed and earned a minimum of a master's graduate degree in
the field of urban planning, economics, or a related field of study or possess a juris doctor law
degree. Preference shall be provided to candidates having earned an advanced degree consisting of
an L.L.M. Law law degree or Ph.D in urban planning or economics. Qualified candidates must
have documented five (5) years full-time experience employed in the administration of housing
policy and/or development.;
     (ii) Be responsible for overseeing all housing initiatives in the state of Rhode Island and
developing a housing plan, including, but not limited to, the development of affordable housing
opportunities to assist in building strong community efforts and revitalizing neighborhoods;
     (iii) Coordinate with all agencies directly related to any housing initiatives including, but
not limited to, the Rhode Island housing and mortgage finance corporation, coastal resources
management council (CRMC), and state departments including, but not limited to,: the department
of environmental management (DEM), the department of business regulation (DBR), the
department of transportation (DOT) and statewide planning; and
     (iv) Coordinate with the housing resources commission to formulate an integrated housing
report to include findings and recommendations to the governor, speaker of the house, senate
president, each chambers' chamber’s finance committee, and any committee whose purview is
reasonably related to, including, but not limited to, issues of housing, municipal government, and
health on or before December 31, 2021, and annually thereafter which report shall include, but not
be limited to, the following:
     (A) The total number of housing units in the state with per community counts, including
the number of Americans with Disabilities Act compliant special needs units.;
     (B) The occupancy and vacancy rate of the units referenced in (A) subsection
(a)(4)(iv)(A).;
     (C) The change in the number of units referenced in (A) subsection (a)(4)(iv)(A), for each
of the prior three (3) years in figures and as a percentage.;
     (D) The number of net new units in development and number of units completed since the
prior report.;
     (E) For each municipality the number of single-family, two-(2) family (2), and three-(3)
family (3) units, and multi-unit housing delineated sufficiently to provide the lay reader a useful
description of current conditions, including a statewide sum of each unit type.;
     (F) The total number of units by income type.;
     (G) A projection of the number of status quo units.;
     (H) A projection of the number of units required to meet housing formation trends.;
     (I) A comparison of regional and other similarly situated state funding sources which that
support housing development including a percentage of private, federal, and public support.;
     (J) A reporting of unit types by number of bedrooms for rental properties including an
accounting of all:
     (I) Single-family units;
     (II) Accessory dwelling units;
     (III) Two-(2) family (2) units;
     (IV) Three-(3) family (3) units;
     (V) Multi-unit sufficiently delineated units;
     (VI) Mixed use sufficiently delineated units; and
     (VII) Occupancy and Vacancy vacancy rates for the prior three (3) years.;
     (K) A reporting of unit types by ownership including an accounting of all:
     (I) Single-family units;
     (II) Accessory dwelling units;
     (III) Two-(2) family (2) units;
     (IV) Three-(3) family (3) units;
     (V) Multi-unit sufficiently delineated units;
     (VI) Mixed use sufficiently delineated units; and
     (VII) Occupancy and Vacancy vacancy rates for the prior three (3) years.;
     (L) A reporting of the number of applications submitted or filed for each community
according to unit type and an accounting of action taken with respect to each application to include,
approved, denied, appealed, approved upon appeal, and if approved, the justification for each
approval.;
     (M) A reporting of permits for each community according to affordability level that were
sought, approved, denied, appealed, approved upon appeal, and if approved, the justification for
each approval.;
     (N) A reporting of affordability by municipality which that shall include the following:
     (I) The percent and number of units of extremely low-, very low-, low-, moderate-, fair-
market rate, and above-market-rate units; including the average and median costs of those units.;
     (II) The percent and number of units of extremely low-, very low-, low-, and moderate-
income housing units required to satisfy the ten percent (10%) requirement pursuant to chapter 24
of title 45; including the average and median costs of those units.;
     (III) The percent and number of units for the affordability levels above moderate-income
housing, including a comparison to fair-market rent and fair-market homeownership; including the
average and median costs of those units.;
     (IV) The percentage of cost burden by municipality with population equivalent.;
     (V) The percentage and number of home financing sources, including all private, federal,
state, or other public support.; and
     (VI) The cost growth for each of the previous five (5) years by unit type at each
affordability level, by unit type.;
     (O) A reporting of municipal healthy housing stock by unit type and number of bedrooms
and provide providing an assessment of the state's existing housing stock and enumerate
enumerating any risks to the public health from that housing stock, including, but not limited to,:
the presence of lead, mold, safe drinking water, disease vectors (insects and vermin), and other
conditions which that are an identifiable health detriment. Additionally, the report shall provide
the percentage of the prevalence of health risks by age of the stock for each community by unit
type and number of bedrooms.; and
     (P) A recommendation shall be included with the report required under this section which
that shall provide consideration to any and all populations, ethnicities, income levels, and other
relevant demographic criteria determined by the deputy secretary, and with regard to any and all of
the criteria enumerated elsewhere in the report separately or in combination, provide
recommendations to resolve any issues which that provide an impediment to the development of
housing, including specific data and evidence in support for of the recommendation. All data and
methodologies used to present evidence are subject to review and approval of the chief of revenue
analysis, and that approval shall include an attestation of approval by the chief to be included in the
report.
     (b) In this capacity, the office shall:
     (1) Lead or assist state departments and coordinate business permitting processes in order
to:
     (i) Improve the economy, efficiency, coordination, and quality of the business climate in
the state;
     (ii) Design strategies and implement best practices that foster economic development and
growth of the state's economy;
     (iii) Maximize and leverage funds from all available public and private sources, including
federal financial participation, grants, and awards;
     (iv) Increase public confidence by conducting customer centric operations whereby
commercial enterprise enterprises are supported and provided programs and services that will
grow and nurture the Rhode Island economy; and
     (v) Be the state's lead agency for economic development.
     (2) Provide oversight and coordination of all housing initiatives in the state of Rhode
Island.
     (c) The office shall include the office of regulatory reform and other administration
functions which that promote, enhance, or regulate various service and functions in order to
promote the reform and improvement of the regulatory function of the state.
     SECTION 3. Chapter 42-128 of the General Laws entitled "Housing Resources Act of
1998" is hereby amended by adding thereto the following sections:
     42-128-2.1. Housing Production Fund.
     (a) There is hereby established a restricted receipt account within the general fund of the
state, to be known as the housing production fund. Funds from this account shall be administered
by the Rhode Island housing and mortgage finance corporation, subject to program and reporting
guidelines adopted by the coordinating committee of the Rhode Island housing resources
commission for housing production initiatives, including:
     (1) Financial assistance by loan, grant, or otherwise, for the planning, production, or
preservation of affordable housing in Rhode Island for households earning not more than eighty
percent (80%) of area median income; and
     (2) Technical and financial assistance for cities and towns to support increased local
housing production, including by reducing regulatory barriers and through the housing incentives
for municipalities program; and.
     (b) In administering the housing production fund, the Rhode Island housing and mortgage
finance corporation shall give priority to households either exiting homelessness or earning not
more than thirty percent (30%) of area median income.
     SECTION 4. Sections 42-128-2 and 42-128-11 Chapter 42-128 of the General Laws
entitled "Housing Resources Act of 1998" are hereby amended to read as follows.
     42-128-2. Rhode Island housing resources agency created.
     There is created within the executive department a housing resources agency with the
following purposes, organization, and powers:
     (1) Purposes:
     (i) To provide coherence to the housing programs of the state of Rhode Island and its
departments, agencies, commissions, corporations, and subdivisions.
     (ii) To provide for the integration and coordination of the activities of the Rhode Island
housing and mortgage finance corporation and the Rhode Island housing resources commission.
     (2) Coordinating committee – Created – Purposes and powers:
     (i) The coordinating committee of the housing resources agency shall be comprised of the
chairperson of the Rhode Island housing and mortgage finance corporations corporation; the
chairperson of the Rhode Island housing resources commission; the director of the department of
administration, or the designee of the director; and the executive director of the Rhode Island
housing and mortgage finance corporation. The chairperson of the Rhode Island housing resources
commission shall be chairperson of the coordinating committee.
     (ii) The coordinating committee shall:
     (a) (A) Shall develop and shall implement, with the approval of the Rhode Island housing
and mortgage finance corporation and the Rhode Island housing resources commission, a
memorandum of agreement describing the fiscal and operational relationship between the Rhode
Island housing and mortgage finance corporation and the Rhode Island housing resources
commission and shall define which programs of federal assistance will be applied for on behalf of
the state by the Rhode Island housing and mortgage finance corporation and the Rhode Island
housing resources commission.
     (b) (B) is Is authorized and empowered to negotiate and to enter into contracts and
cooperative agreements with agencies and political subdivisions of the state, not-for-profit
corporations, for profit corporations, and other partnerships, associations and persons for any lawful
purpose necessary and desirable to effect the purposes of this chapter, subject to the provisions of
chapter 2 of title 37 as applicable.
     (3) There is hereby established a restricted receipt account within the general fund of the
state. Funds from this account shall be used to provide for housing and homelessness initiatives
including housing production, the lead hazard abatement program, housing rental subsidy, housing
retention assistance, and homelessness services and prevention assistance with priority given to
homeless veterans and homeless prevention assistance and housing retention assistance with
priority to veterans.
     42-128-11. Executive director – Employees.
     The commission governor shall appoint from qualified candidates, with the advice of the
coordinating committee, an executive director, who shall not be subject to the provisions of chapter
4 of title 36, and who shall serve as the state housing commissioner and may also serve in the
executive office of commerce as the deputy secretary of housing. The commission shall set the
compensation and the terms of employment of the executive director. The commission shall also
cause to be employed such staff and technical and professional consultants as may be required to
carry out the powers and duties set forth in this chapter. All staff, including the executive director,
may be secured through a memorandum of agreement with the Rhode Island housing and mortgage
finance corporation, or any other agency or political subdivision of the state with the approval of
the relevant agency or political subdivision, as provided for in § 42-128-2(2)(ii). Any person who
is in the civil service and is transferred to the commission may retain civil service status.
     SECTION 5. Title 42 of the General Laws entitled "State Affairs and Government" is
hereby amended by adding thereto the following chapter:
CHAPTER 42-128.4 42-128.3
HOUSING INCENTIVES FOR MUNICIPALITIES
     42-128.4 42-128.4-1 42-128.3-1. Short title.
     This chapter shall be known as "Housing Incentives for Municipalities." 
     42-128.4-2 42-128.3-2. Establishment of program.
     There is hereby established a housing incentive for municipalities program to be
administered as set forth in section § 42-128-2.1, in consultation with the division of statewide
planning and the Rhode Island housing and mortgage finance corporation. 
     42-128.4-4 42-128.4-3 42-128.3-3. Purposes.
     The coordinating committee is authorized and empowered to carry out the program for the
following purposes:
     (a) (1) To foster and maintain strong collaborations with municipalities in the state. 
     (b) (2) To support and assist municipalities in promoting housing production that
adequately meets the needs of Rhode Island's current and future residents.
     (c) (3) To make diverse, high-quality, and accessible housing options readily available to
residents within their local communities.
     (d) (4) To enable residents to live near convenient public transit and other commercial and
cultural resources.
     (e) (5) To make development decisions fair, predictable, and cost effective. 
     (f) (6) To foster distinctive, attractive, and resilient communities, while preserving the
state's open space, farmland, and natural beauty.
     42-128.4-4 42-128.3-4. Definitions.
     As used in this chapter: 
     (1) "The coordinating Coordinating committee" means the Rhode Island housing
resources coordinating committee established pursuant to § 42-128-2(2).
     (2) "Eligible locations'' means an area designated by the coordinating committee as a
suitable site for a housing incentive district by virtue of its infrastructure, existing underutilized
facilities, or other advantageous qualities, including (i) proximity Proximity to public transit
centers, including commuter rail, bus, and ferry terminals; or (ii) proximity Proximity to areas of
concentrated development, including town and city centers or other existing commercial districts.
     (3) "Eligible student" means an individual that who (i) lives Lives in a newly constructed
dwelling unit within a housing incentive district, to the extent that the unit could not have been
realized under the underlying zoning,; and (ii) attends Attends a school in the city or town.
     (4) (5) "School impact offset payments" means a payment to a city or town to help offset
increased municipal costs of educating eligible students.
     (5) (4) "Housing incentive district" means an overlay district adopted by a city or town
pursuant to this chapter. A housing incentive district is intended to encourage residential
development and must permit minimum residential uses. A housing incentive district may
accommodate uses complimentary complementary to the primary residential uses, as deemed
appropriate by the adopting city or town; however, the majority of development on lots within a
housing incentive district must be residential. Land development plans within a housing incentive
district shall be treated as minor land development plans, as defined by § 45-23-32, unless otherwise
specified by ordinance.
     42-128.4-5 42-128.3-5. Adoption of housing incentive districts.
     (a) In its zoning ordinance, a city or town may adopt a housing incentive district in any
eligible location.
     (b) The adoption, amendment, or repeal of such ordinance shall be in accordance with the
provisions of chapter 45-24 of title 45.
     (c) A housing incentive district shall comply with this chapter and any minimum
requirements established by the coordinating committee. 
     (d) The zoning ordinance for each housing incentive district shall specify the procedure for
land development and subdivision review within the district in accordance with this chapter and
the regulations of the coordinating committee.
     (e) Nothing in this chapter shall affect a city or town's authority to amend its zoning
ordinances under chapter 45-24 of title 45.
     42-128.4-6 42-128.3-6. Assistance to municipalities.
     (a) The coordinating committee is authorized and empowered, at its discretion, to provide
all manner of support and assistance to municipalities in connection with fostering local housing
production, including, but not limited to: 
     (1) Providing technical assistance for the preparation, adoption, or implementation of laws,
regulations, or processes related to residential development; and 
     (2) Authorizing the Rhode Island housing and mortgage finance corporation to issue school
impact offset payments to participating municipalities. 
     42-128.4-7 42-128.3-7. Rules and regulations - Reports.
     (a) The coordinating committee is hereby authorized to promulgate such rules and
regulations as are necessary to fulfill the purposes of this chapter, including, but not limited to,
provisions relating to: application criteria; eligible locations for housing incentive districts;
minimum requirements for housing incentive districts; eligible students for the calculation
of school impact offset payments; and the amount and method of payment to cities and towns
for school impact offset payments.
     (b) The coordinating committee shall include in its annual report information on the
commitment and disbursement of funds allocated under the program. The report shall be provided
to the governor, the secretary of commerce, speaker of the house of representatives, and the
president of the senate. 
     42-128.4-8 42-128.3-8. Program integrity.
     Program integrity being of paramount importance, the coordinating committee shall
establish procedures to ensure ongoing compliance with the terms and conditions of the program
established herein, including procedures to safeguard the expenditure of public funds and to ensure
that the funds further the purposes of the program. 
     42-128.4-9 42-128.3-9. Cooperation.
     Any department, agency, council, board, or other public instrumentality of the state shall
cooperate with the coordinating committee in relation to the implementation, execution, and
administration of the program created under this chapter. 
     SECTION 6. Section 44-25-1 of the General Laws in Chapter 44-25 entitled "Real Estate
Conveyance Tax" is hereby amended to read as follows:
     44-25-1. Tax imposed – Payment – Burden.
     (a) There is imposed, on each deed, instrument, or writing by which any lands, tenements,
or other realty sold is granted, assigned, transferred, or conveyed to, or vested in, the purchaser or
purchasers, or any other person or persons, by his, or her, or their direction, or on any grant,
assignment, transfer, or conveyance or such vesting, by such persons which that has the effect of
making any real estate company an acquired real estate company, when the consideration paid
exceeds one hundred dollars ($100), a tax at the rate of two dollars and thirty cents ($2.30) for each
five hundred dollars ($500), or fractional part of it, that is paid for the purchase of property or the
interest in an acquired real estate company (inclusive of the value of any lien or encumbrance
remaining at the time of the sale, grant, assignment, transfer or conveyance or vesting occurs, or in
the case of an interest in an acquired real estate company, a percentage of the value of such lien or
encumbrance equivalent to the percentage interest in the acquired real estate company being
granted, assigned, transferred, conveyed or vested), which. The tax is payable at the time of making,
the execution, delivery, acceptance or presentation for recording of any instrument affecting such
transfer grant, assignment, transfer, conveyance or vesting. In the absence of an agreement to the
contrary, the tax shall be paid by the grantor, assignor, transferor or person making the conveyance
or vesting.
     (b) In addition to the tax imposed by paragraph subsection (a), there is imposed, on each
deed, instrument, or writing by which any residential real property sold is granted, assigned,
transferred, or conveyed to, or vested in, the purchaser or purchasers, or any other person or
persons, by his, or her, or their direction, or on any grant, assignment, transfer, or conveyance or
such vesting, by such persons which that has the effect of making any real estate company an
acquired real estate company, when the consideration paid exceeds eight hundred thousand dollars
($800,000), a tax at the rate of two dollars and thirty cents ($2.30) for each five hundred dollars
($500), or fractional part of it, of the consideration in excess of eight hundred thousand dollars
($800,000) that is paid for the purchase of property or the interest in an acquired real estate company
(inclusive of the value of any lien or encumbrance remaining at the time of the sale, grant,
assignment, transfer, or conveyance or vesting occurs, or in the case of an interest in an acquired
real estate company, a percentage of the value of such lien or encumbrance equivalent to the
percentage interest in the acquired real estate company being granted, assigned, transferred,
conveyed, or vested). The tax imposed by this paragraph subsection shall be paid at the same time
and in the same manner as the tax imposed by paragraph subsection (a).
     (bc) In the event no consideration is actually paid for the lands, tenements, or realty, the
instrument or interest in an acquired real estate company of conveyance shall contain a statement
to the effect that the consideration is such that no documentary stamps are required.
     (c) The tax administrator shall contribute 
     (d) The tax shall be distributed as follows:
     (i) (1) With respect to the tax imposed by paragraph subsection (a): the tax administrator
shall contribute to the distressed community relief program the sum of thirty cents ($.30) per two
dollars and thirty cents ($2.30) of the face value of the stamps to be distributed pursuant to § 45-
13-12, and to the housing resources commission restricted receipts account the sum of thirty cents
($.30) per two dollars and thirty cents ($2.30) of the face value of the stamps. Funds will be
administered by the office of housing and community development, through the housing resources
commission. The state shall retain sixty cents ($.60) for state use. The balance of the tax shall be
retained by the municipality collecting the tax.
     (ii) (2) With respect to the tax imposed by paragraph subsection (b): the tax administrator
shall contribute the entire tax to the housing production fund established pursuant to § 42-128-2.1.
     (iii) (3) Notwithstanding the above, in the case of the tax on the grant, transfer, assignment
or conveyance or vesting with respect to an acquired real estate company, the tax shall be collected
by the tax administrator and shall be distributed to the municipality where the real estate owned by
the acquired real estate company is located; provided, however, in the case of any such tax collected
by the tax administrator, if the acquired real estate company owns property located in more than
one municipality, the proceeds of the tax shall be allocated amongst said municipalities in the
proportion the assessed value of said real estate in each such municipality bears to the total of the
assessed values of all of the real estate owned by the acquired real estate company in Rhode Island.
Provided, however, in fiscal years 2004 and 2005, from the proceeds of this tax, the tax
administrator shall deposit as general revenues the sum of ninety cents ($.90) per two dollars and
thirty cents ($2.30) of the face value of the stamps. The balance of the tax on the purchase of
property shall be retained by the municipality collecting the tax. The balance of the tax on the
transfer with respect to an acquired real estate company, shall be collected by the tax administrator
and shall be distributed to the municipality where the property for which interest is sold is
physically located. Provided, however, that in the case of any tax collected by the tax administrator
with respect to an acquired real estate company where the acquired real estate company owns
property located in more than one municipality, the proceeds of the tax shall be allocated amongst
the municipalities in proportion that the assessed value in any such municipality bears to the
assessed values of all of the real estate owned by the acquired real estate company in Rhode Island.
     (d) (e) For purposes of this section, the term "acquired real estate company" means a real
estate company that has undergone a change in ownership interest if (i) (1) such The change does
not affect the continuity of the operations of the company; and (ii) (2) the The change, whether
alone or together with prior changes has the effect of granting, transferring, assigning, or conveying
or vesting, transferring directly or indirectly, 50% or more of the total ownership in the company
within a period of three (3) years. For purposes of the foregoing subsection (ii) hereof (e)(2), a
grant, transfer, assignment or conveyance or vesting, shall be deemed to have occurred within a
period of three (3) years of another grant(s), transfer(s), assignment(s), or conveyance(s) or
vesting(s) if during the period the granting, transferring, assigning, or conveying or party provides
the receiving party a legally binding document granting, transferring, assigning, or conveying or
vesting said the realty or a commitment or option enforceable at a future date to execute the grant,
transfer, assignment, or conveyance or vesting.
     (e) (f) A real estate company is a corporation, limited liability company, partnership or
other legal entity which that meets any of the following:
     (i) (1) Is primarily engaged in the business of holding, selling, or leasing real estate, where
90% or more of the ownership of said the real estate is held by 35 or fewer persons and which
company either (a) (i) derives 60% or more of its annual gross receipts from the ownership or
disposition of real estate; or (b) (ii) owns real estate the value of which comprises 90% or more of
the value of the entity's entire tangible asset holdings exclusive of tangible assets which that are
fairly transferrable and actively traded on an established market; or
     (ii) (2) 90% Ninety percent or more of the ownership interest in such entity is held by 35
or fewer persons and the entity owns as 90% or more of the fair market value of its assets a direct
or indirect interest in a real estate company. An indirect ownership interest is an interest in an entity
90% or more of which is held by 35 or fewer persons and the purpose of the entity is the ownership
of a real estate company.
     (f) (g) In the case of a grant, assignment, transfer or conveyance or vesting which that
results in a real estate company becoming an acquired real estate company, the grantor, assignor,
transferor, or person making the conveyance or causing the vesting, shall file or cause to be filed
with the division of taxation, at least five (5) days prior to the grant, transfer, assignment, or
conveyance or vesting, notification of the proposed grant, transfer, assignment, or conveyance or
vesting, the price, terms and conditions of thereof, and the character and location of all of the real
estate assets held by the real estate company and shall remit the tax imposed and owed pursuant to
subsection (a) hereof. Any such grant, transfer, assignment, or conveyance or vesting which results
in a real estate company becoming an acquired real estate company shall be fraudulent and void as
against the state unless the entity notifies the tax administrator in writing of the grant, transfer,
assignment, or conveyance or vesting as herein required in subsection (f) (g) hereof and has paid
the tax as required in subsection (a) hereof. Upon the payment of the tax by the transferor, the tax
administrator shall issue a certificate of the payment of the tax which certificate shall be recordable
in the land evidence records in each municipality in which such real estate company owns real
estate. Where the real estate company has assets other than interests in real estate located in Rhode
Island, the tax shall be based upon the assessed value of each parcel of property located in each
municipality in the state of Rhode Island.
     SECTION 7. Section 44-25-2 of the General Laws in Chapter 44-25 entitled "Real Estate
Conveyance Tax" is hereby amended to read as follows:
     44-25-2. Exemptions.
     (a) The tax imposed by this chapter does not apply to any instrument or writing given to
secure a debt.
     (b) The tax imposed by this chapter does not apply to any deed, instrument, or writing
wherein the United States, the state of Rhode Island, or its political subdivisions are designated the
grantor.
     (c) The tax imposed by this chapter does not apply to any deed, instrument, or writing that
has or shall be executed, delivered, accepted, or presented for recording in furtherance of, or
pursuant to, that certain master property conveyance contract dated December 29, 1982, and
recorded in the land evidence records of the city of Providence on January 27, 1983, at 1:30 p.m.
in book 1241 at page 849, and relating to the capital center project in the city of Providence.
     (d) The qualified sale of a mobile or manufactured home community to a resident-owned
organization as defined in § 31-44-1 is exempt from the real estate conveyance tax imposed under
this chapter.
     (e) No transfer tax or fee shall be imposed by a land trust or municipality upon the
acquisition of real estate by the state of Rhode Island or any of its political subdivisions.
     (f) Nothing in § 44-25-1 shall be construed to impose a tax upon any grant, assignment,
transfer, conveyance, or vesting of any interest, direct or indirect, among owners, members, or
partners in any real estate company with respect to an affordable housing development where:
     (i) (1) The housing development has been financed in whole or in part with federal low-
income housing tax credits pursuant to § 42 of the Internal Revenue Code (26 U.S.C. § 42); or
     (ii) (2) At least one of the owners, members, or partners of the company is a Rhode Island
nonprofit corporation or an entity exempt from tax under § 501(c)(3) of the Internal Revenue Code
[26 U.S.C. § 42, or is owned by a Rhode Island nonprofit corporation or an entity that is exempt
from tax under § 501(c)(3) of the Internal revenue Revenue Code, and the housing development is
subject to a recorded deed restriction or declaration of land use restrictive covenants in favor of the
Rhode Island housing and mortgage finance corporation, the state of Rhode Island housing
resources commission, the federal home loan bank or any of its members, or any other state or local
government instrumentality under an affordable housing program. No such real estate company
shall be an acquired real estate company under this section.
     SECTION 8. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding thereto the following chapter:
CHAPTER 160
RHODE ISLAND PAY FOR SUCCESS ACT
     42-160-1. Short title.
     This act shall be known and may be cited as the "Rhode Island Pay for Success Act."
     42-160-2. Legislative findings.
     The general assembly hereby finds and declares as follows:
     (1) Pay-for-success contracts are executed detailing the outcomes, associated repayment,
and evaluation process to be conducted by a third party. The proceeds are disbursed to a nonprofit
organization(s) that will execute the intervention delivering services and other resources, such as
housing, to the target population. An independent evaluator monitors the outcomes of the
intervention to determine if success was met. If the intervention improves financial and social
outcomes in accordance with established metrics, the government, as outcome payor, pays back the
investors with interest using a portion of the savings accrued from the successful outcomes. If the
evaluator determines that success was not met, meaning there is no improvement in financial or
social outcomes, the investors lose money.
     (2) In 2016 the United States Department of Justice (DOJ) and the United States
Department of Housing and Urban Development (HUD) awarded funding to the Rhode Island
Coalition to End Homelessness to pursue a pay for success social impact bond in Rhode Island
focusing on housing and supportive services for persons experiencing homelessness who are high
utilizers of the health care healthcare and justice systems. The pilot program will leverage eight
hundred seventy-five thousand dollars ($875,000) in outcome payment funding from the HUD/DOJ
grant as well as the intervention and independent evaluation process described in the grant
agreement.
     42-160-3. Annual reporting.
     (1) The executive office, in collaboration with the Rhode Island Coalition to End
Homelessness, shall provide yearly progress reports to the general assembly beginning no later than
January 30, 2022, and annually thereafter until January 30, 2027. These reports will include
recommendations on a proposed structure for entering into pay for success contracts, for
administering the program, and for any and all matters related thereto that the executive office
deems necessary to administer future pay for success projects at the conclusion of the pilot program
in 2026. As a condition of this project, HUD requires that a third party conduct a transparent and
rigorous evaluation of the intervention to determine whether the outcomes have indeed achieved
success. The evaluation results will be reported yearly to the governor and general assembly.
     42-160-4. Definitions.
     For the purpose of this chapter:
     (a) (9) "Performance targets" means the level of performance, as measured by an
independent evaluator, which that represent represents success. Success is defined in the pay-for-
success contract.
     (b) (5) "Independent evaluator" means an independent entity selected by the state whose
role includes assessing and reporting on the achievement of performance targets at the frequency
required in the pay for success contract.
     (c) (13) "Success payments" refer to the payments that the state will make only if
contractual performance targets are achieved as determined by the independent evaluator and
approved by the office of management and budget.
     (d) (8) "Pay for success contracts" are contracts designed to improve outcomes and lower
costs for contracted government services that are subject to the following requirements:
     (1) (i) A determination that the contract will result in significant performance
improvements and budgetary savings across all impacted agencies if the performance targets are
achieved;
     (2) (ii) A requirement that a substantial portion of any payment be conditioned on the
achievement of specific outcomes based on defined performance targets;
     (3) (iii) An objective process by which an independent evaluator will determine whether
the performance targets have been achieved;
     (4) (iv) A calculation of the amount and timing of payments that would be earned by the
service provider during each year of the agreement if performance targets are achieved as
determined by the independent evaluator; and
     (5) (v) Payments shall only be made if performance targets are achieved. Additionally, the
success payment made pursuant to this chapter shall not exceed ten percent (10%) more than actual
costs incurred by the program intermediary.
     (1) "Coordinated entry system (CES)" means the partnership of all homeless service
providers in the state through this initiative of the Rhode Island continuum of care. CES manages
all diversion/entry to the shelter system through the coordinated entry hotline and manages the
permanent housing placement part of the program, once persons are in a shelter or are living on the
street.
     (2) "Executive office" means the Rhode Island executive office of health and human
services.
     (3) "Homeless management information system (HMIS)" means the database used to
collect information in order to track and report on the scope of homelessness prevention/assistance
and human service needs across the Rhode Island continuum of care (COC) as well as individually
at each organization. The Rhode Island Coalition to End Homelessness is the current HMIS state
lead.
     (4) "Homelessness" means the category 1 and category 4 definitions outline by HUD:
     (i) Category 1-Literally homeless: the situation of an individual or family lacking a fixed,
regular, and adequate nighttime residence, meaning:
     (A) Has a primary nighttime residence that is a public or private place not meant for human
habitation;
     (B) Is living in a publicly or privately operated shelter designated to provide temporary
living arrangements (including congregate shelters, transitional housing, and hotels and motels paid
for by charitable organizations or by federal, state and local government programs); or
     (C) Is exiting an institution where he or she has resided for ninety (90) days or less and
who resided in an emergency shelter or place not meant for human habitation immediately before
entering that institution.
     (ii) Category 4-Fleeing/attempting to flee domestic violence: Any individual or family
who:
     (A) Is fleeing, or is attempting to flee, domestic violence;
     (B) Has no other residence; and
     (C) Lacks the resources or support networks to obtain other permanent housing.
     (5) (6) "Nonprofit organization" means a nonprofit organization that is exempt from federal
taxation pursuant to § 501(c)(3) of the federal internal revenue code Internal Revenue Code, 26
U.S.C. § 501(c)(3).
     (6) (7) "Outcome payor" means the the Rhode Island state government.
     (7) (10) "Permanent supportive housing (PSH)" means a permanent deeply subsidized unit,
tenant or project based subsidy, with supportive services, generally for persons experiencing
homelessness for long periods of time who also have other significant challenges such as disability
or mental illness.
     (8) (12) "Social impact bond", "pay-for-success bond" or "bond" means a contract between
the public and private sectors in which a commitment is made to pay for improved financial and
social outcomes that result in public sector savings. These contract agreements are funded by
appropriation.
     (9) (14) "Target population" means highly vulnerable persons that who experience long-
term homelessness and incur significant costs within the criminal justice, shelter, and/or health care
healthcare systems, likely related to their housing instability, with an estimated average per person
cost of Medicaid claims for adults in shelter, top twenty-five (25) clients, totaling two hundred
twenty-nine thousand, six hundred ninety-five dollars and forty-four cents ($229,695.44), as per
the Rhode Island Medicaid and HMIS data match for adults in shelter. Eligibility will be confirmed
by data matching, case conferencing, and coordination with health care healthcare providers and
the coordinated entry system (CES); data sources will be provided by the department of corrections,
executive office of health and human services, and the Rhode Island homeless management
information system.
     (10) (11) "Program intermediary" means a firm that contracts with a state agency to
establish and delivery deliver a service or program intervention by doing any of the following:
     (i) Delivering or contracting for relevant services or outcomes;
     (ii) Raising capital to finance the delivery of services or outcomes;
     (iii) Providing ongoing project management and investor relations for the social impact
funding instrument.
     42-160-5. Pilot program established.
     There is established a five-(5) year (5) pay-for-success pilot program to be administered
by the Rhode Island executive office of health and human services. The pilot will follow the
proposal outlined in the 2016 pay-for-success grant proposal to HUD and 2017 feasibility study.
The pay-for-success project will provide a housing and supportive services intervention (PSH) for
one hundred twenty-five (125) persons in Rhode Island experiencing homelessness who are high
utilizers of the health care healthcare and justice systems. The pilot program will leverage eight
hundred seventy-five thousand dollars ($875,000) of HUD/DOJ grant funds. Contract agreements
with the executive office of health and human services pursuant to this chapter shall not exceed one
million five hundred thousand dollars ($1,500,000) per fiscal year or six million dollars
($6,000,000) in the aggregate over the five (5) years of the pilot program, as determined by the
department; provided, no agreements shall be entered by the department after July 1, 2026, without
further authorization by the general assembly.
     42-160-6. Establishment of restricted receipt account.
     There is hereby created within the general fund of the state a restricted receipt account
entitled or to be known as "Pay for Success." The account shall be housed within the budget of the
executive office of health and human services and shall be utilized to record all receipts and
program expenditures associated with this chapter. All such monies deposited shall be exempt from
the indirect cost recovery provisions of § 35-4-27.
     SECTION 9. Section 6 of this article shall take effect on January 1, 2022. All other sections
of this article shall take effect upon passage.