WHEREAS, Many of our state's urban and suburban communities have a significant inventory of multi-family residential properties containing 5, or more, living units; and

WHEREAS, The market value of these properties has depreciated significantly in recent years due to the collapse of the credit union system in Rhode Island. Credit unions were a major source of financing for this type of property prior to the collapse; and

WHEREAS, Commercial banks are the only current source of financing for these properties; and current interest rates and financing terms discourage individuals from investing in this type of property for the purpose of owner-occupancy; and

WHEREAS, A lack of affordable financing, and the resulting decline property values in this category, has caused many hardships to individuals and communities, including:

An unnecessary shift in assessed values and property taxes to single-family, commercial and industrial property owners;

Lost equity and financial hardship to multi-family property owners who have no practical ability to sell their property under current financing programs without incurring a significant financial loss;

An increase in the number of properties that have been abandoned by property owners due to financial hardship and despair;

An increase in vandalism, and the resulting effect of neighborhood blight, as well as the additional strain on police and fire department personnel and the inherent risks of personal injury to public safety personnel responding to vandalism; and

WHEREAS, Developing an affordable financing program for multi-family residential properties containing 5, or more, living units would offer individuals the ability to enjoy the benefits of home ownership, offering new opportunities to existing residents, low-income families and new immigrants to our state; and

WHEREAS, Encouraging owner-occupancy of these properties would restore pride and stability to our neighborhoods, and would enhance each community's redevelopment efforts; and

WHEREAS, Property values would increase, leading to growth in each community's tax base, restoring fairness to the tax burden shouldered by each class of property; and

WHEREAS, This request is of top-priority of the entire State of Rhode Island and is consistent with the mission and purpose of the R.I. Housing and Mortgage Finance Corp.; now, therefore, be it

RESOLVED, That this Senate of the State of Rhode Island and Providence Plantations hereby respectfully requests that the R.I. Housing and Mortgage Finance Corp., and its Executive Director Richard H. Godfrey, Jr., develop and implement a practical and affordable financing program to allow individuals to purchase multi-family residential properties of 5-units, or more, for the purpose of owner-occupancy; and be it further

RESOLVED, That the R.I. Housing and Mortgage Finance Corp. shall provide the Senate with monthly reports of its efforts and progress in addressing this request commencing June 1, 1997; and be it further

RESOLVED, That the Secretary of State be and he hereby is authorized and directed to transmit a duly certified copy of this resolution to the Executive Director of the R.I. Housing and Mortgage Financing Corp., Richard H. Godfrey, Jr.