2022 -- S 2939 | |
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LC005743 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2022 | |
____________ | |
A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT -- APPROPRIATIONS -- | |
AMERICAN RECOVERY PROGRAM ACT HOUSING FUND AND CREATING RELIABLE | |
EFFICIENT AFFORDABLE TENANCIES EXPEDITIOUSLY -- "CREATE" HOMES ACT | |
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Introduced By: Senators Kallman, Pearson, Lombardo, Ruggerio, DiPalma, Murray, and | |
Date Introduced: May 13, 2022 | |
Referred To: Senate Housing & Municipal Government | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The appropriations from federal funds contained in section 1 of this act shall |
2 | not be construed to mean any federal funds or assistance appropriated, authorized, allocated or |
3 | apportioned to the State of Rhode Island from the State Fiscal Recovery Fund, and the Coronavirus |
4 | Capital Projects Fund enacted pursuant to the American Rescue Plan Act of 2021, P.L. 117-2. |
5 | Subject to the conditions, limitations and restrictions hereinafter contained in this act, for fiscal |
6 | year 2022, the portions of the State Fiscal Recovery Fund monies apportioned to the State of Rhode |
7 | Island pursuant to the American Rescue Plan Act of 2021, P.L. 117-2, denominated herein are |
8 | hereby appropriated in the following amounts for the stated departments, agencies and |
9 | organizations for the purposes set forth below. The state controller is hereby authorized and directed |
10 | to draw his or her orders upon the general treasurer for the payment of such sums or such portions |
11 | thereof as may be required from time to time upon receipt by him or her of properly authenticated |
12 | vouchers. |
13 | (1) Housing Development Fund, created pursuant to section 2 of this act and codified at |
14 | G.L. 42-162.1-1 et seq. $150,000,000 |
15 | (b) Department of Housing $150,000,000 |
16 | For the purpose of hiring: |
17 | (i) Two (2) FTEs to assist the secretary of housing in the administration of his/her duties |
18 | under sections 2 through 5 of this act codified at chapters 162 through 162.3 of title 42 of the |
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1 | general laws, and |
2 | (ii) Pursuant to §§ 42-162-4(15) and 42-162.3-11(f), codified at §§ 42-162-4(15) and 42- |
3 | 162.3-11(f) for the hiring of per diem, project-based, part-time, or seasonal staff as determined to |
4 | be necessary by the secretary of housing to assist municipalities in the planning and/inspection of |
5 | potential projects and projects to ensure there are no staffing issues at the municipal level that would |
6 | delay projects from being approved or completed and to fund and administer the programs under |
7 | section 3 of this act. |
8 | SECTION 2. Title 42 of the General Laws entitled "STATE AFFAIRS AND |
9 | GOVERNMENT" is hereby amended by adding thereto the following chapter: |
10 | CHAPTER 162 |
11 | DEPARTMENT OF HOUSING |
12 | 42-162-1. Department of housing. |
13 | (a) There is hereby established within the executive branch of state government a |
14 | department of housing. |
15 | (b) The head of the department shall be the secretary of housing, who shall be appointed |
16 | by the governor, with the advice and consent of the senate, and shall serve at the pleasure of the |
17 | governor, except for the initial director to serve under the transition provision provided under § 42- |
18 | 162-3(2). |
19 | (c) The department shall contain: |
20 | (1) The division of housing and community development (chapter 128 of title 42); |
21 | (2) The division of residential planning and policy (§§ 42-11-10 and 42-11-12) (chapter |
22 | 162.1 of title 42); |
23 | (3) The land bank administration (chapter 162.2 of title 42); |
24 | (4) The residential development program (chapter 162.3 of title 42); and |
25 | (5) The administrative office of housing permitting and appeals (chapter 53 of title 45 and |
26 | chapter 163.3 of title 42). |
27 | 42-162-2. Powers and duties of the department. |
28 | (a) The department of housing shall have the following powers and duties: |
29 | (1) To operate the land bank program created pursuant to chapter 162.2 of title 42; |
30 | (2) To administer the housing development fund created pursuant to chapter 162.1 of title |
31 | 42; |
32 | (3) To operate the residential development program created pursuant to chapter 162.3 of |
33 | title 42; |
34 | (4) To operate a division within the department to be called the "division of housing and |
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1 | community development" as the successor to the housing resources commission created pursuant |
2 | to chapter 128 of title 42; |
3 | (5) To serve as the chief coordinator and operate the "interagency council on homelessness" |
4 | created pursuant to chapter 17 of title 40; |
5 | (6) To operate the rental and other assistance programs created pursuant to section 11.2 of |
6 | title 42; |
7 | (7) To coordinate with the office of healthy aging and the director of the department of |
8 | elderly affairs or their successor to ensure the operation of programs created by the security housing |
9 | for the elderly act pursuant to section 66.1 of title 42; |
10 | (8) To coordinate with the director of the department of elderly affairs and the director of |
11 | the department of human services or their successor or successors to assist in the operation of |
12 | programs created by the Rhode Island limited housing assistance waiver act pursuant to chapter |
13 | 66.8 of title 42; |
14 | (9) To coordinate with the department of human services and office of healthy aging or |
15 | their successors to ensure the operation of programs created by the Rhode Island aging and |
16 | disability resource center act pursuant to chapter 66.12 of title 42; |
17 | (10) To coordinate with Rhode Island housing and conservation board or its successor to |
18 | ensure the operation of programs created by Rhode Island housing and conservation trust fund act |
19 | pursuant to chapter 113 of title 42; |
20 | (11) To administer the program for expedited permitting for affordable housing pursuant |
21 | to chapter 128.2 of title 42; |
22 | (12) To operate the program for municipal housing incentives created pursuant to chapter |
23 | 128.3 of title 42; |
24 | (13) To control statewide planning related to housing development and policy and |
25 | coordinate with agencies and entities regarding the infrastructure necessary for housing |
26 | development for the state and affiliated activities as listed in §§ 42-11-10 and 42-11-12 including, |
27 | but not limited to: |
28 | (i) Local planning assistance; |
29 | (ii) Community development training; and |
30 | (iii) Building code standards committee; |
31 | (14) To create and operate housing and homelessness initiatives and/or programs which: |
32 | (i) Provide, promote and encourage the preservation, expansion and sound development of |
33 | new and existing residential housing units that ensure a sufficient safe, modern, transit friendly, |
34 | healthy, affordable, and environmentally and climate sensitive housing stock for the residents and |
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1 | workers of this state thereby enhancing the business, commerce, agriculture, tourism, recreational |
2 | sectors and promote thereby the economic development of the state and the general welfare of its |
3 | citizens; |
4 | (ii) Administer appropriated and grant funds related to housing production, lead hazard |
5 | abatement, housing rental subsidy, housing retention assistance, and homelessness services and |
6 | prevention assistance with priority to veterans. |
7 | (b) In the carrying out of said duties, the department of housing shall be authorized and |
8 | empowered to negotiate and to enter into contracts and cooperative agreements with agencies and |
9 | political subdivisions of the state, not-for-profit corporations, for profit corporations, and other |
10 | partnerships, associations and persons for any lawful purpose necessary and desirable to effect the |
11 | purposes of this chapter, subject to the provisions of chapter 2 of title 37 as applicable. |
12 | 42-162-3. General powers, duties and qualifications of the secretary of housing. |
13 | The secretary of housing shall: |
14 | (1) On the effective date of this act assume all of the powers and duties previously conferred |
15 | on the deputy secretary of commerce and housing, including, but not limited to, those delineated in |
16 | § 42-64.19-3 and such other duties as may be assigned by the general assembly through legislation |
17 | from time to time. |
18 | (2) On the effective date of this act, the individual then serving as the deputy secretary of |
19 | commerce and housing shall assume the role of secretary of commerce under this chapter. |
20 | Thereafter, prior to hiring, any individual nominated to be the secretary of housing shall have |
21 | completed and earned a minimum of a master's degree in the field of urban planning, economics, |
22 | or a related field of study or possess a juris doctor law degree. Preference shall be provided to |
23 | candidates having earned an advanced degree consisting of an L.L.M. law degree, a doctor of |
24 | business administration degree, a Ph.D. in urban planning or economics, or the equivalent academic |
25 | degree. Qualified candidates must have documented five (5) years full-time experience employed |
26 | in the administration of housing policy and/or development; |
27 | (3) The secretary of housing shall be responsible for overseeing all housing initiatives in |
28 | the State of Rhode Island and developing a housing plan, including, but not limited to, the |
29 | development of affordable housing opportunities to assist in building strong community efforts and |
30 | revitalizing neighborhoods; |
31 | (4) The secretary of housing shall coordinate with all agencies directly related to any |
32 | housing initiatives including, but not limited to, the Rhode Island housing and mortgage finance |
33 | corporation (RIHMFC), coastal resources management council (CRMC), and state departments |
34 | including, but not limited to: the department of environmental management (DEM), the department |
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1 | of business regulation (DBR), the department of transportation (DOT) and statewide planning; and |
2 | (5) The secretary of housing is hereby authorized and empowered to make rules and |
3 | regulations as the secretary may deem necessary for the proper administration and enforcement of |
4 | the laws of Rhode Island for the department of housing and its divisions and offices. |
5 | (6) The secretary of housing shall formulate and provide an integrated housing report to |
6 | include findings and recommendations to the governor, speaker of the house, senate president, each |
7 | chamber's finance committee, and any committee whose purview is reasonably related to, |
8 | including, but not limited to, issues of housing, municipal government, and health on or before |
9 | December 31, 2022, and annually thereafter which report shall include those items which are listed |
10 | in § 42-162-10. |
11 | (7) The secretary of housing shall serve as a member of or appoint a designee to serve on |
12 | the aging in the community subcommittee created pursuant to chapter 66.11 of title 42 and in |
13 | default in the performance of said committee to ensure its formation and operation; |
14 | (8) Notwithstanding any provision of law to the contrary, the secretary of housing shall |
15 | appoint the chiefs/directors of the divisions/departments within the executive office of commerce |
16 | with the consent of the governor. |
17 | 42-162-4. Specific powers of the secretary of housing. |
18 | The secretary of housing shall be subject to the direction and supervision of the governor |
19 | for the oversight, coordination and cohesive direction of state housing development and planning |
20 | activities of the state and in ensuring the laws are faithfully executed, notwithstanding any law to |
21 | the contrary. In this capacity, the secretary of housing shall be authorized to: |
22 | (1) Coordinate the administration and financing of various departments or divisions within |
23 | the office and to supervise the work of the Rhode Island housing resources commission; |
24 | (2) Serve as the governor's chief advisor and liaison to federal policymakers on housing |
25 | development and housing related issues as well as the principal point of contact in the state on any |
26 | such related matters; |
27 | (3) Review and ensure the coordination of the development of an overarching housing |
28 | development plan as produced by the office; |
29 | (4) Receive from department directors, within the timelines specified, any information and |
30 | resources the secretary of housing deems necessary in order to perform the reviews authorized in |
31 | this section; |
32 | (5) Engage in regulatory reform across all state agencies under his or her oversight to |
33 | protect the health and wellbeing of Rhode Islanders while meeting business needs for a clear, |
34 | predictable, and reliable regulatory structure in the state related to housing and related infrastructure |
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1 | for residential development; including the implementation of systems to enhance customer service |
2 | by simplifying and expediting state permitting processes; |
3 | (6) The directors of the departments, as well as local governments and school departments, |
4 | shall assist and cooperate with the secretary of housing in fulfilling this responsibility by providing |
5 | whatever information and support shall be necessary; |
6 | (7) Resolve administrative, jurisdictional, operational, program, or policy conflicts among |
7 | departments and their executive staffs on housing related issues and make necessary |
8 | recommendations to the governor; |
9 | (8) Assure continued progress toward improving the quality, accountability, and efficiency |
10 | of state-administered programs to support the Rhode Island housing plan. |
11 | (10) Prepare and integrate comprehensive budgets for the housing services departments, |
12 | programs and functions and duties assigned to the office. The budgets shall be submitted to the |
13 | state budget office by the secretary of housing, for consideration by the governor, on behalf of the |
14 | state's housing agencies in accordance with the provisions set forth in § 35-3-4; |
15 | (11) Utilize objective data to evaluate economic development policy goals, resource use |
16 | and outcome evaluation and to perform short-and long-term policy planning and development; |
17 | (12) Establish an integrated approach to interdepartmental information and data |
18 | management that complements and furthers the goals of the state; |
19 | (13) At the direction of the governor or the general assembly, conduct independent reviews |
20 | of state-administered housing programs, policies and related agency and municipal actions and |
21 | activities and assist the department directors in identifying strategies to address any issues or areas |
22 | of concern that may emerge thereof. The department directors and municipal officials shall provide |
23 | any information and assistance deemed necessary by the secretary of housing when undertaking |
24 | such independent reviews; |
25 | (14) Provide regular and timely reports to the governor and make recommendations with |
26 | respect to the state's housing development agenda; |
27 | (15) Employ such personnel and contract for such consulting services as may be required |
28 | to perform the powers and duties lawfully conferred upon the secretary of housing; and |
29 | (16) Implement the provisions of any general or public law or regulation related to the |
30 | disclosure, confidentiality and privacy of any information or records, in the possession or under the |
31 | control of the executive office or the departments assigned to the executive office, that may be |
32 | developed or acquired for purposes directly connected with the secretary's duties set forth herein. |
33 | 42-162-5. Reassignment and consolidation of agencies and programs related to |
34 | housing. |
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1 | (a) The departments, councils, commissions, programs, agencies and/or divisions assigned |
2 | to the department or secretary of housing shall: |
3 | (1) Exercise their respective powers and duties in accordance with their statutory authority |
4 | and the general policy established by the governor or by the secretary of housing acting on behalf |
5 | of the governor or in accordance with the powers and authorities conferred upon the secretary of |
6 | housing by this chapter; |
7 | (2) Provide such assistance or resources as may be requested or required by the governor |
8 | and/or the secretary of housing; and |
9 | (3) Provide such records and information as may be requested or required by the governor |
10 | and/or the secretary of housing to the extent allowed under the provisions of any applicable general |
11 | or public law, regulation, or agreement relating to the confidentiality, privacy or disclosure of such |
12 | records or information. |
13 | (4) Forward to the secretary of housing copies of all reports to the governor. |
14 | (b) Except as provided herein, no provision of this chapter or application thereof shall be |
15 | construed to limit or otherwise restrict the departments, offices, or divisions assigned to the |
16 | secretary from fulfilling any statutory requirement or complying with any valid rule or regulation. |
17 | (c) The secretary shall determine in collaboration with the department directors whether |
18 | the officers, employees, agencies, advisory councils, committees, commissions, and task forces of |
19 | the departments who were performing such functions shall be transferred to the department. |
20 | (d) In the transference of such functions, the secretary of housing shall be responsible for |
21 | ensuring: |
22 | (1) Minimal disruption of services to consumers; |
23 | (2) Elimination of duplication of functions and operations; |
24 | (3) Services are coordinated and functions are consolidated where appropriate; |
25 | (4) Clear lines of authority are delineated and followed; |
26 | (5) Cost savings are achieved whenever feasible; |
27 | (6) Program application and eligibility determination processes are coordinated and, where |
28 | feasible, integrated; and |
29 | (7) State and federal funds available to the department and the entities therein are allocated |
30 | and utilized for service delivery to the fullest extent possible. |
31 | (e) Except as provided herein, no provision of this chapter or application thereof shall be |
32 | construed to limit or otherwise restrict the departments under this section from fulfilling any |
33 | statutory requirement or complying with any regulation deemed otherwise valid. |
34 | (f) To ensure an orderly transfer of functions to the department of housing the following |
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1 | transition shall occur at the direction of the governor, secretary of housing and the respective |
2 | directors of the departments affected. |
3 | (g) On or about July 1, 2022, the department of housing shall commence to operate all of |
4 | the statewide planning responsibilities listed in § 42-11-10 related to housing planning and |
5 | production and all duties under § 42-11-12 currently assigned to the department of administration. |
6 | (h) On or about July 1, 2022, the department of housing shall commence to operate all of |
7 | the responsibilities related to residential housing planning, aid, development and programs |
8 | currently assigned to the commerce corporation, the executive office of commerce and/or the |
9 | department of commerce. |
10 | (i) On or about July 1, 2022, the department of housing shall commence to operate all of |
11 | the responsibilities assigned to the state housing appeals board as provided in chapter 53 of title 45. |
12 | (j) In addition to the requirements of § 35-3-7, budgets submitted by the impacted state |
13 | departments for state fiscal years 2015 and 2016 shall include provisions to implement this section. |
14 | 42-162-6. Appointment of employees. |
15 | The secretary of housing, subject to the provisions of applicable state law, shall be the |
16 | appointing authority for all employees of the department of housing. The secretary of housing may |
17 | assign this function to such subordinate officers and employees of the department as may to him or |
18 | her seem feasible or desirable. The appointing authority of the secretary of housing provided for |
19 | herein shall not affect, interfere with, limit, or otherwise restrict the appointing authority vested in |
20 | the directors for the employees of the departments under applicable general and public laws. |
21 | 42-162-7. Appropriations and disbursements. |
22 | The general assembly shall annually appropriate such sums as it may deem necessary for |
23 | the purpose of carrying out the provisions of this chapter. The state controller is hereby authorized |
24 | and directed to draw his or her orders upon the general treasurer for the payment of such sum or |
25 | sums, or so much thereof as may from time to time be required, upon receipt by him or her of |
26 | proper authenticated vouchers approved by the secretary of the executive office of commerce, or |
27 | his or her designee. All other laws related to appropriation by the general assembly, except as |
28 | otherwise provided related to restricted receipt accounts, multi-year funds and/or revolving funds |
29 | as set out in specific acts of the general assembly, shall apply to the department. |
30 | 42-162-8. Severability. |
31 | If any provision of this chapter or the application thereof to any person or circumstance is |
32 | held invalid, such invalidity shall not affect other provisions or applications of the chapter, which |
33 | can be given effect without the invalid provision or application, and to this end the provisions of |
34 | this chapter are declared to be severable. |
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1 | 42-162-9. Cooperation of other state and municipal public bodies and quasi-publics. |
2 | As may be appropriate from time to time, the departments and other agencies of the state |
3 | of the legislative, executive and judicial branches that have not been assigned to the department of |
4 | housing under this chapter and all municipal public bodies shall assist and cooperate with the |
5 | department as may be requested by the secretary. |
6 | 42-162-10. Requirements of reports. |
7 | The report required under § 42-162-3(f) shall include, but not be limited to: |
8 | (1) The total number of housing units in the state with per community counts, including |
9 | the number of Americans with Disabilities Act compliant special needs units; |
10 | (2) The occupancy and vacancy rate of the units referenced in subsection § 42-64.19- |
11 | 3(a)(4)(iv)(A); |
12 | (3) The change in the number of units referenced in § 42-64.19-3(a)(4)(iv)(A), for each of |
13 | the prior three (3) years in figures and as a percentage; |
14 | (4) The number of net new units in development and number of units completed since the |
15 | prior report; |
16 | (5) For each municipality the number of single-family, two-family (2), and three-family |
17 | (3) units, and multi-unit housing delineated sufficiently to provide the lay reader a useful |
18 | description of current conditions, including a statewide sum of each unit type; |
19 | (6) The total number of units by income type; |
20 | (7) A projection of the number of status quo units; |
21 | (8) A projection of the number of units required to meet housing formation trends; |
22 | (9) A comparison of regional and other similarly situated state funding sources that support |
23 | housing development including a percentage of private, federal, and public support; |
24 | (10) 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-family (2) units; |
29 | (iv) Three-family (3) 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 | (11) 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-family (2) units; |
3 | (iv) Three-family (3) 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 | (12) 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 | (13) 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 | (14) A reporting of affordability by municipality that shall include the following: |
15 | (i) The percent and number of units of extremely low-, very low-, low-, moderate-, fair- |
16 | market 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- |
18 | income housing units required to satisfy the ten percent (10%) requirement pursuant to chapter 24 |
19 | of title 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; and |
26 | (vi) The cost growth for each of the previous five (5) years by unit type at each affordability |
27 | level, by unit type; |
28 | (15) A reporting of municipal healthy housing stock by unit type and number of bedrooms |
29 | and providing an assessment of the state's existing housing stock and enumerating any risks to the |
30 | public 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 that 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; and |
34 | (16) A recommendation shall be included with the report required under this section that |
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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 secretary, and with regard to any and all of the criteria |
3 | enumerated elsewhere in the report separately or in combination, provide recommendations to |
4 | resolve any issues that provide an impediment to the development of housing, including specific |
5 | data and evidence in support of the recommendation. All data and methodologies used to present |
6 | evidence are subject to review and approval of the chief of revenue analysis, and that approval shall |
7 | include an attestation of approval by the chief to be included in the report. |
8 | SECTION 3. Title 42 of the General Laws entitled "STATE AFFAIRS AND |
9 | GOVERNMENT" is hereby amended by adding thereto the following chapter: |
10 | CHAPTER 162.1 |
11 | HOUSING DEVELOPMENT FUND |
12 | 42-162.1-1. Short title. |
13 | This chapter shall be known and may cited as the "Housing Development Fund Act." |
14 | 42-162.1-2. Legislative findings and purpose. |
15 | The general assembly finds and declares that there exists an acute shortage of affordable, |
16 | accessible, safe, and sanitary housing for its citizens of low-and moderate-income, and working |
17 | families; that it is imperative that action is taken immediately to assure the availability of affordable, |
18 | accessible, safe, and sanitary housing for these persons; that it is necessary that each that due to |
19 | limitations faced by the municipalities and the inability to meet the ten percent (10%) requirement |
20 | for affordable housing in chapter 53 of title 45 that the state must provide alternative opportunities |
21 | for the establishment of low-and moderate-income housing; and that the provisions of this chapter |
22 | are necessary to assure the health, safety, and welfare of all citizens of this state, and that each |
23 | citizen enjoys the right to affordable, accessible, safe, and sanitary housing. It is further declared to |
24 | be the purpose of this chapter to provide for housing opportunities for low-and moderate-income |
25 | individuals and families and work-force housing in each city and town of the state and that an equal |
26 | consideration shall be given to the retrofitting and rehabilitation of existing dwellings for low-and |
27 | moderate-income housing and assimilating low-and moderate-income housing into existing and |
28 | future developments and neighborhoods. Lastly, the goals of the federal funds provided to the state |
29 | through various programs including, but not limited to, the American Recovery Plan Act, the State |
30 | Fiscal Relief Funds and other sources allocated to housing require proper administration to achieve |
31 | their stated purposes. |
32 | 42-162.1-3. Definitions. |
33 | As used in this act: |
34 | (1) "Affordable housing unit" means a unit that may be sold to any individual classified as |
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1 | "low-or moderate-income" earning less than or equal to one hundred and twenty percent (120%) of |
2 | area median income as measured at the time of the purchase of an eligible unit. |
3 | (2) "Applicant" means a developer or occupant applying for a grant of money or land, or |
4 | loan or conditional loan under this chapter. |
5 | (3) "Business" means a corporation as defined in § 44-11-1, or is a partnership, an S |
6 | corporation, a nonprofit corporation, sole proprietorship, or a limited liability corporation. |
7 | (4) "Capital investment" in a development or development project means costs or expenses |
8 | by a business or any affiliate of the business incurred after application for: real estate asset |
9 | acquisition, site preparation, construction, repair, renovation, improvement, equipping, or |
10 | furnishing on real property or of a building, structure, facility, or improvement to real property. |
11 | (5) "Department" means the department of housing. |
12 | (6) "Developer" means a person, firm, corporation, partnership, association, political |
13 | subdivision, or other entity, whether for profit or not-for-profit, that proposes to divide, divides, or |
14 | causes to be divided real property into a subdivision or proposes to build, or builds a building or |
15 | buildings or otherwise improves land or existing structures, which division, building, or |
16 | improvement of land qualifies for benefits under this chapter. |
17 | (7) "Fund" means the housing development fund created pursuant to § 42-162.1-4. |
18 | (8) "Market rate housing unit" means a unit that may be sold to any individual earning any |
19 | amount without any income restriction and is sold at fair market value. |
20 | (9) "Occupant" means a resident as a tenant, owner, or joint venture partner, occupying |
21 | space pursuant to a lease or other occupancy agreement within any structure or building developed |
22 | on land which is subject to assistance being provided from the fund. |
23 | (10) "Owner-occupant" is an "occupant" who resides in a building or structure and is the |
24 | title holder of the parcel upon which the building or structure is situated. |
25 | (11) "Project cost" means the costs incurred in connection with a project by an applicant |
26 | until the issuance of a permanent certificate of occupancy, or until such other time specified by the |
27 | secretary of housing. |
28 | (12) "Project financing gap" means the part of the total project cost that remains to be |
29 | financed after all other sources of capital have been accounted for (such sources will include, but |
30 | not be limited to, developer-contributed capital), which shall be defined through rules and |
31 | regulations promulgated by the secretary of housing. |
32 | (13) "Real estate assets" shall be defined to include, but not be limited to: land, buildings, |
33 | fixtures, improvements, easements, rights-of-way, and all other rights of ownership, possession |
34 | and/or use associated with real property. |
| LC005743 - Page 12 of 40 |
1 | (14) "Workforce related housing unit" means a unit that may be sold to any individual |
2 | earning above the threshold for an affordable housing unit, but below the maximum threshold set |
3 | pursuant to 26 U.S.C. § 143 as measured at the time of the purchase of an eligible unit. |
4 | 42-162.1-4. Establishment of the fund - Uses - Composition. |
5 | (a) The housing development fund (the "fund") is hereby established under the jurisdiction |
6 | of and shall be administered by the department of housing in order to further the goals set forth in |
7 | § 42-162.1-2 and to promote, among other purposes, the development, redevelopment and update |
8 | of housing in order to make housing more affordable and more available in Rhode Island. |
9 | (b) The uses of the fund include, but are not limited to: |
10 | (1) Financing real estate asset acquisition by the department for the land bank described in |
11 | chapter 162.2 of title 42; |
12 | (2) Filling project financing gaps for residential and multifamily real estate projects eligible |
13 | under the criteria created pursuant to § 42-162.1-5 or pursuant to other law; |
14 | (3) Financing public infrastructure and public facilities to support or enhance residential |
15 | development including, but not limited to, transportation, parks, greenways, performance venues, |
16 | meeting facilities, community facilities, and public safety precincts. |
17 | (4) Hiring of per diem, project based, part-time, or seasonal staff as determined to be |
18 | necessary by the secretary of housing to assist municipalities in the planning and/or inspection of |
19 | potential projects and projects that are provided assistance from the fund. |
20 | (c) The fund shall consist of: |
21 | (1) Money appropriated from the American Recovery Program Act funds allocated to the |
22 | state, |
23 | (2) Money appropriated in the state budget to the fund; |
24 | (3) Money made available to the fund through federal programs or private contributions; |
25 | (4) Repayments of principal and interest from loans made from the fund; |
26 | (5) Proceeds from the sale, disposition, lease, or rental of collateral related to financial |
27 | assistance provided under this chapter; |
28 | (6) Application or other fees paid to the fund to process requests for financial assistance; |
29 | (7) Recovery made by the department or on the sale of an appreciated asset in which the |
30 | department has acquired an interest under this chapter; and |
31 | (8) Any other money made available to the fund. |
32 | (d) No assets in the fund shall be subject to attachment, execution, lien or other legal |
33 | process, judicial or administrative, in law or in equity, except when a particular asset within the |
34 | fund is pledged as security for any loan agreement and in such case the particular asset shall be |
| LC005743 - Page 13 of 40 |
1 | subject to lien, attachment or execution for satisfaction of the loan only and no other assets in the |
2 | fund shall be taken, reached or applied. |
3 | 42-162.1-5. Assistance - Powers of the department - Reports. |
4 | (a) An applicant seeking assistance under this chapter shall submit a request to the |
5 | department of housing pursuant to an application procedure prescribed by the secretary of housing. |
6 | (b) Any approval for funding under this chapter may only be granted under the authority |
7 | of the secretary of housing. |
8 | (c) The secretary of housing may set the terms and conditions for assistance under this |
9 | chapter by regulation, program design, request for proposals or other predetermined method for |
10 | which applicants may apply. Except as provided in subsection (b) of this section, any decision to |
11 | grant or deny such assistance lies within the sole discretion of the secretary. |
12 | (d) The secretary of housing shall publish a report on the fund at the end of each fiscal year. |
13 | The report shall contain information on the commitment, disbursement, and use of funds allocated |
14 | under the fund. The report shall also, to the extent practicable, track the impact of projects that have |
15 | been completed using the fund including, but not limited to, information on housing availability |
16 | and economic data. The report is due no later than sixty (60) days after the end of the fiscal year, |
17 | and shall be provided to the speaker of the house of representatives, the president of the senate and |
18 | the secretary of commerce. |
19 | 42-162.1-6. Severability. |
20 | If any clause, sentence, paragraph, section or part of this chapter shall be judged by any |
21 | court or competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate |
22 | the remainder thereof, but it shall be confined in its operation of the clause, sentence, paragraph, |
23 | section or part directly involved in the controversy in which that judgment shall have been rendered. |
24 | Notwithstanding the foregoing, in the event that any term or provision is judged by any court of |
25 | competent jurisdiction to be invalid, the general assembly shall promptly act to address such clause, |
26 | section, sentence, paragraph, or part directly involved in which the subject judgment shall have |
27 | been rendered so as to provide, as near as practicable, the result originally intended by such clause, |
28 | section, sentence, paragraph or part without running contrary to such judgment. |
29 | SECTION 4. Title 42 of the General Laws entitled "STATE AFFAIRS AND |
30 | GOVERNMENT" is hereby amended by adding thereto the following chapter: |
31 | CHAPTER 162.2 |
32 | DEPARTMENT OF HOUSING LAND BANK PROGRAM |
33 | 42-162.2-1. Establishment of program. |
34 | There is hereby established a program do be operated by the department of housing called |
| LC005743 - Page 14 of 40 |
1 | the "housing land bank." |
2 | 42-162.2-2. Establishment of account. |
3 | The department of housing shall establish an account into which title to real estate assets |
4 | shall be deposited and held for use in future residential housing projects in this state. |
5 | 42-162.2-3. Acquisition of property and deposit into the land bank. |
6 | (a) The department of housing may acquire real property or interests in real property by |
7 | gift, devise, transfer, exchange, foreclosure, purchase, or otherwise on terms and conditions and in |
8 | a manner the department considers proper and deposit such property into the land bank. |
9 | (b) The department of housing may use its own funds or funds in the housing development |
10 | fund created pursuant to chapter 162.1 of title 42 to acquire real property by purchase contracts, |
11 | lease purchase agreements, installment sales contracts, and/or land contracts, and may accept |
12 | transfers from municipalities, other quasi-public entities, nonprofit entities or the state upon such |
13 | terms and conditions as agreed to by the department and the municipality, entity or state. |
14 | (c) Notwithstanding any other law to the contrary, any municipality may freely transfer to |
15 | the land bank real property and interests in real property of the municipality on such terms and |
16 | conditions and according to such procedures as determined jointly by the municipality and the |
17 | department of housing. |
18 | (d) The acquisition of real property by the department of housing pursuant to this section, |
19 | from entities other than political subdivisions, shall be limited to real property that is tax delinquent, |
20 | tax foreclosed, subject to municipal receivership, vacant or abandoned, or unimproved land; |
21 | provided, however, that a land bank shall have authority to enter into agreements to purchase other |
22 | real property consistent with an approved development plan in accordance with chapter 165.3 of |
23 | title 42. |
24 | 42-162.2-4. Public inspection of records. |
25 | (a) The department shall maintain and make available for public review and inspection a |
26 | complete inventory of all property received by the department for deposit into the land bank. Such |
27 | inventory shall include: the location of the parcel; the purchase price, if any, for each parcel |
28 | received; the current value assigned to the property for purposes of real property taxation; the |
29 | amount, if any, owed to the locality for real property taxation or as a payment in lieu of taxes; the |
30 | identity of the transferor; and any conditions or restrictions applicable to the property. |
31 | (b) All parcels received by the department and deposited into the land bank shall be listed |
32 | on the received inventory established pursuant to subsection (a) of this section within one week of |
33 | acquisition and shall remain in such inventory for one week prior to disposition. Such inventory |
34 | shall be listed on a website for the department accessible to the public. |
| LC005743 - Page 15 of 40 |
1 | 42-165.2-5. Departmental authority to reject proposed transfers of property. |
2 | The department of housing is hereby allowed to reject any transfer of polluted, |
3 | contaminated or problematic parcels which would in the judgment of the department create a harm |
4 | to the finances, operations or interests for the land bank, the department or the state. |
5 | 42-162.2-6. Property in the land bank exempt from legal process. |
6 | (a) Any land deposited into the land bank shall not be subject to attachment, execution or |
7 | any judicial or administrative process during the period it is held by the department, unless that |
8 | parcel or asset is pledged as security for any loan agreement made for funding improvements related |
9 | to that parcel in which case such process shall be available against that asset only, and no liens, |
10 | fines, penalties, assessments or other charges shall be made against the property, the land bank, the |
11 | department or the state for any reason during the period it is held in the land bank. |
12 | (b) In the event there is a division in the fee hold where only a portion of the rights related |
13 | to the property is located in the land bank, the remainder may be made subject to legal process so |
14 | long as such process does not act to divest the land bank of any of its attributes of ownership or |
15 | ability to develop the property. |
16 | (c) In the event of a divided ownership where a portion of the fee or property interest is |
17 | held by the land bank or any other conflict in ownership which may arise under this section, the |
18 | department may petition the superior court for partition in which after the required notice and |
19 | service of process is completed upon confirmatory motion the land bank shall be awarded and |
20 | receive the whole fee simple interest by way of an interim order or a final judgment. An interim |
21 | order or a final judgment constitutes a recordable order which shall be considered binding in the |
22 | chain of title and any of the remainder portion claimed by another owner or creditor shall be subject |
23 | to penalty under the law or in equity based on the value of the interest transferred to the land bank. |
24 | Neither the department nor any land subject to such a partition action shall be restrained nor |
25 | enjoined and no equitable order shall issue to prevent the development of the property by the |
26 | department or its applicant or assignee. |
27 | 42-162.2-7. Required review of surplus land by state and municipal entities. |
28 | (a) Conduct of required review. All state and municipal public bodies and quasi-public |
29 | entities shall conduct a review of real estate assets owned by or under the control of the body or |
30 | quasi-public entity and determine which real estate assets are not under current use or planned use |
31 | by December 31, 2022. |
32 | (b) Real estate asset planning. Each state and municipal public body and quasi-public entity |
33 | shall create a long-term plan for those real estate assets not in current use. Such a plan shall provide |
34 | an estimated date when each real estate asset will be employed for use by the agency, what the |
| LC005743 - Page 16 of 40 |
1 | proposed use will be, and if known the estimated costs to develop the land for the proposed use. |
2 | (c) A list of all real estate assets which are not in use shall be submitted to the department |
3 | along with a list of those parcels for which there are plans to put said parcel to use within ten (10) |
4 | years and evidence of what that use will be. |
5 | (d) The department will evaluate each parcel submitted to the department, along with the |
6 | proposed use for each parcel so denominated by each public body for the appropriateness for |
7 | development into residential housing units. A copy of the list shall also be provided to the state |
8 | properties committee. |
9 | (e) Notice to the department. If the department determines that a particular parcel listed on |
10 | any list required in subsections (b) and (c) of this section is determined to be appropriate for |
11 | residential real estate development the department shall provide notice to the state or municipal |
12 | public body or quasi-public agency that is in control of or owns the parcel. |
13 | (f) Required donation or sale to land bank. Upon a determination by the department that a |
14 | particular real estate asset listed pursuant to subsection (d) of this section is suitable for residential |
15 | real estate development and the department has determined that it desires to acquire the real estate |
16 | asset for the land bank, if said parcel is not listed as being planned for use within the next ten (10) |
17 | years the state or municipal public body or quasi-public agency, as applicable, shall be required |
18 | upon notice by the department to enter into a negotiation with the department for the transfer of the |
19 | parcel to the land bank. If the parcel is listed as not currently in use, but that there is a planned use |
20 | within the next ten (10) years, the department shall evaluated the planned use, the other lands held |
21 | by the public body as alternative sites for the appropriateness of the planned use that is claimed and |
22 | shall have the final determination as to whether to force a purchase of the land notwithstanding the |
23 | public body's claimed use unless the public body has taken affirmative steps by making expenses |
24 | or setting aside restricted funds of at least ten percent (10%) of the anticipated development cost to |
25 | the put the property into the planned use. If that department and the state or municipal public body |
26 | or quasi-public agency cannot agree on a transfer value then establishment of a value through |
27 | binding arbitration by a panel comprising of three (3) certified real estate appraisers shall be |
28 | required. If the value is such that the department desires to continue with the purchase then the state |
29 | or municipal public body or quasi-public agency shall be required to consummate the sale. |
30 | (g) Parcels exempt from the required donation or sale. The following real estate assets shall |
31 | be exempt from the required sale procedure in subsection (e) of this section: |
32 | (1) All real estate assets under the control of the Quonset development corporation within |
33 | the Quonset business park; |
34 | (2) All real estate assets under the control of the Rhode Island airport corporation; |
| LC005743 - Page 17 of 40 |
1 | (3) All real estate assets under the control of the department of transportation held for |
2 | proposed roads, highways, railways or other transportation infrastructure; |
3 | (4) All real estate assets under the control of the Rhode Island public transit authority; |
4 | (5) All real estate assets in the immediate vicinity of the state house and state offices in the |
5 | capitol district; |
6 | (6) All real estate assets connected with judicial branch activities; |
7 | (7) All real estate assets controlled by the department of corrections; |
8 | (8) All real estate assets controlled by the university of Rhode Island that are located in |
9 | South Kingstown or Exeter; |
10 | (9) All real estate assets controlled by Rhode Island college that are located in Providence |
11 | (10) All real estate assets located in Cranston at the John O. Pastore center or in its |
12 | immediate vicinity; |
13 | (11) All real estate assets controlled by the office of veterans' services in the vicinity of the |
14 | Rhode Island veterans' cemetery and the Rhode Island veterans' home; |
15 | (12) All real estate assets related to Eleanor Slater hospital including, but not limited to, |
16 | facilities in Cranston and Burrillville; |
17 | (13) All assets located in a flood zone; |
18 | (14) All assets located in a wetland designated by the department of environmental |
19 | management; |
20 | (15) All assets located within the jurisdiction of the coastal resources management council; |
21 | (16) All real estate assets which are subject to any farm, forest or open space restriction |
22 | against building through the department of environmental management, any agricultural |
23 | conservancy trust, or any not-for-profit entity or trust; |
24 | (17) All parcels designated by the director of the department of emergency management as |
25 | necessary for emergency preparation purposes; |
26 | (18) All parcels abutting or adjacent to hospitals and healthcare facilities that are reserved |
27 | for future expansion of the healthcare or hospital facility; |
28 | (19) Real estate assets subject to the control or oversight of the I-195 redevelopment |
29 | commission; |
30 | (20) Real estate assets owned, controlled or overseen by the Rhode Island historical |
31 | preservation & heritage commission; |
32 | (21) Any property being operated as a farm, for recreational purposes, open space, or as a |
33 | water supply or for the provision of utilities or serves as a buffer to any watershed, water supply or |
34 | utility. |
| LC005743 - Page 18 of 40 |
1 | (h) Donation or sale prior to disposition. Prior to any disposition of any real estate asset by |
2 | any state or municipal public body or quasi-public agency through sale, long-term lease of more |
3 | than five (5) years, surplus of property, auction, donation or other method, notice shall be provided |
4 | to the department along with the opportunity to timely evaluate the property and decide whether |
5 | exercise an option to purchase or decline to purchase the parcel which shall not be less than forty- |
6 | five (45) days. Notice of the proposed auction date, sale date or date of the disposition shall be |
7 | provided to the commission. Unless a public auction or sale is required pursuant to other law or |
8 | judicial order the department shall have the right of first refusal for purchase of the real estate asset |
9 | by the land bank at: |
10 | (1) The advertised price, or if none then; |
11 | (2) At the price offered by an alternative buyer, or if none then; and |
12 | (3) At the lowest price acceptable to the selling entity if acceptable to the department. The |
13 | department shall inform the selling agency of its decision to exercise its right of first refusal prior |
14 | to the auction date, sale date or disposition date contained in the original notice. |
15 | SECTION 5. Title 42 of the General Laws entitled "STATE AFFAIRS AND |
16 | GOVERNMENT" is hereby amended by adding thereto the following chapter: |
17 | CHAPTER 162.3 |
18 | DEPARTMENT OF HOUSING RESIDENTIAL DEVELOPMENT PROGRAMS |
19 | 42-162.3-1. Definitions. |
20 | (a) As used in this chapter, words and terms, shall have the meaning set forth in § 42-162.1- |
21 | 3 unless this chapter provides a different meaning or unless the context indicates a different |
22 | meaning or intent. |
23 | (b) Within this chapter, the following words and terms shall have the following meanings |
24 | unless the context indicates a different meaning or intent: |
25 | (1) "Affordable housing" means a housing unit provided to an individual for family whose |
26 | income is less than or equal to one hundred and twenty percent (120%) of area median income as |
27 | measured at the time of the purchase of an eligible unit. |
28 | (2) "Department" means the Rhode Island housing department. |
29 | (3) "Secretary" means the secretary of housing. |
30 | (4) "Foreclosing governmental unit" means any municipality, water service, sewer provider |
31 | with the power to sell a property through chapter 9 of title 44 or with the power to foreclose |
32 | foreclose as well as the "department." |
33 | (5) "Housing structures" means a building or structure containing one or more "housing |
34 | units." |
| LC005743 - Page 19 of 40 |
1 | (6) "Housing units" means a building or a portion of a building which is conveyed or rented |
2 | to a single family for their occupancy. The units shall be separate from all other units in a structure |
3 | and contain separate rooms for each of the following purposes: at least one bathroom with a shower |
4 | and tub unit, one kitchen with a refrigerator, kitchen sink and cooking appliances, a living or |
5 | common family space, at least two (2) bedrooms, and a closed space for utilities and mechanicals |
6 | servicing the unit. |
7 | (7) "Land bank" means a land bank established in chapter 16.2 of title 42; |
8 | (8) "State and municipal public bodies" means, the state, any city, any town and any |
9 | executive, legislative, judicial, regulatory, or administrative body of the state, or any political |
10 | subdivision thereof; including, but not limited to: any department, division, agency, commission, |
11 | board, office, bureau, authority; any school, fire, or water district, or other agency of Rhode Island |
12 | state or local government. |
13 | (9) "Workforce eligible housing" means a housing unit provided to an individual for family |
14 | whose income constitutes not more than the greater of: |
15 | (i) The maximum income allowable under 26 U.S.C. § 143; or |
16 | (ii) One hundred twenty thousand dollars ($120,000) measured in 2021 dollars adjusted for |
17 | the consumer price index ("CPI") for a family of three (3) or less with a formula based upward |
18 | adjustment as determined by the department based on family size up to a maximum of six (6) |
19 | members of the household. |
20 | 42-162.3-2. Creation of programs. |
21 | The department of housing is hereby authorized to create and establish programs for |
22 | promoting and encouraging the preservation, expansion and sound development of new and |
23 | existing residential housing units thereby increasing the housing security of the citizens of this state |
24 | in safe and affordable housing which shall also promote the economic development of the state by |
25 | ensuring safety for its workforce and families. |
26 | 42-162.3-3. General powers. |
27 | (a) Except to the extent inconsistent with any specific provision of this chapter, the |
28 | department shall have and may exercise all general powers set forth in chapters 162 through 162.3 |
29 | of title 42, inclusive, necessary or convenient to effect its purposes, which shall include the powers |
30 | to acquire and to dispose of real property, subject to the provisions of this chapter, without the |
31 | necessity of obtaining the approval of the state properties committee or otherwise complying with |
32 | the provisions of title 37 and to dispose of projects as provided for in § 42-64-11. |
33 | (b) The department is further authorized: |
34 | (1) To ask, demand, recover, collect, receive, hold, and possess all sums of money, debts, |
| LC005743 - Page 20 of 40 |
1 | dues, goods, wares, merchandise, chattels, effects, bonds, notes, checks, drafts, accounts, deposits, |
2 | safe deposit boxes, interests, dividends, stock certificates, certificates of deposit, insurance benefits |
3 | and proceeds, documents of title, personal and real property, tangible and intangible property, and |
4 | property rights, liquidated or unliquidated, that now are, or hereafter, shall be, or become, due, |
5 | owing, or payable in respect to the property, and upon receipt thereof, or of any part thereof, to |
6 | make, sign, execute, and deliver such receipts, releases, or other discharges for the same as the |
7 | secretary shall deem proper and deliver the amounts required to the housing development fund |
8 | created by chapter 162.1 of this title. |
9 | (2) To lease, purchase, exchange and acquire, and to bargain, contract, and agree for the |
10 | lease, purchase, exchange, and acquisition of, and to take, receive, possess, and manage any real or |
11 | personal property related in any way to the property, tangible and intangible, or any interest therein. |
12 | (3) To enter into and upon all and each of the real properties constituting a part of, or related |
13 | in any way, to the property, and to let, manage, and improve the real property or any part thereof, |
14 | and to repair or otherwise improve or alter, and to insure any buildings or structures thereon. |
15 | (4) Subject to the provisions of this chapter, to market and sell, either at public or private |
16 | sale, or exchange any part or parts of the real or personal properties, including indebtedness or |
17 | evidence thereof, constituting a part of or related in any way to the property, including sales on |
18 | credit, and for that purpose to execute and receive all promissory notes, bonds, mortgages, deeds |
19 | of trust, security agreements, and other instruments that may be necessary or proper, and to bargain, |
20 | contract, and agree with respect to the sale or exchange of such properties; and to execute and |
21 | deliver good and sufficient deeds, bills of sale, assignments, or other instruments or endorsements |
22 | for the conveyance or transfer of the same; and to give receipts for all or any part of the purchase |
23 | price or other consideration. |
24 | (5) To sign, endorse, execute, acknowledge, deliver, receive, and possess such applications, |
25 | contracts, agreements, options, covenants, deeds, conveyances, trust deeds, mortgagees deeds, |
26 | security agreements, bills of sale, leases, mortgages, assignments, insurance policies, bills of lading, |
27 | warehouse receipts, documents of title, bills, bonds, debentures, checks, drafts, bills of exchange, |
28 | notes, stock certificates, proxies, warrants, commercial paper, receipts, withdrawal receipts, and |
29 | deposit instruments relating to accounts or deposits in, or certificates of deposit of, banks, savings |
30 | and loan or other institutions or associations, proofs of loss, evidences of debts, releases, and |
31 | satisfactions of mortgages, judgments, liens, security agreements, and other debts and obligations, |
32 | and other instruments in writing of whatever kind and nature as be necessary or proper in the |
33 | exercise of the rights and powers herein granted. |
34 | (6) To enter into subordination agreements, inter-creditor agreements, reinstatement |
| LC005743 - Page 21 of 40 |
1 | agreements, "stand still" and "stand-by" agreements, modification agreements, forbearance |
2 | agreements, and other contracts having the effect of subordinating, modifying, renewing, |
3 | restructuring or otherwise altering the rights, obligations, or liabilities of the department or its |
4 | predecessors, under or with respect to any indebtedness, property, or other assets constituting or |
5 | securing any property. |
6 | (7) To make demands, give notices of default, notices of intention to accelerate, notices of |
7 | acceleration, or such other notices as the department deems necessary or appropriate, and to take |
8 | other actions and exercise other rights that may be taken under the terms of any loan agreements, |
9 | security agreements, guaranties, or other documents or agreements evidencing, or otherwise |
10 | relating to, the property, including foreclosure, lease, sale, taking possession of, realization upon, |
11 | or any other disposition of any property or any collateral therefor or guarantee thereof. |
12 | (8) To exercise any powers and any duties previously vested in the commerce corporation |
13 | or now vested in the department as a partner, joint venturer, participant, or other joint-interest holder |
14 | with respect to any property, or to concur (or not) with persons jointly interested with the |
15 | department in any property. |
16 | (9) With respect to the property: |
17 | (i) To sue on, or otherwise prosecute, any claim or cause of action, or commence or seek |
18 | any legal, equitable, or administrative or other remedy in any legal, administrative, arbitration, |
19 | mediation, or other proceeding whatsoever (including, non-judicial repossessions and foreclosures |
20 | or similar actions to recover collateral); |
21 | (ii) To defend, or otherwise participate for, or in the name of, the department in any legal, |
22 | administrative, arbitration, mediation, or other proceedings; |
23 | (iii) To process, determine, or adjudge any claim or cause of action for, or in the name of, |
24 | the department; |
25 | (iv) To compromise, settle, discharge or resolve, or make, execute, or deliver any |
26 | endorsements, acquittances, releases, receipts, or other discharges of any claim, cause of action, |
27 | determination, judgment, or other proceeding for, or in the name of, the department; and |
28 | (v) To prepare, execute, and file ad valorem, franchise and other tax returns, protests and |
29 | suits against taxing authorities, and to prepare, execute, and file other governmental or quasi- |
30 | governmental reports, declarations, applications, requests and documents in connection with any |
31 | property, and to pay taxes in connection with the property as the department deems necessary or |
32 | appropriate, or as otherwise required by law. |
33 | (10) Any third party shall be entitled to rely on a writing signed by the secretary or in his |
34 | or her name to conclusively establish the identity of a particular property as property for all |
| LC005743 - Page 22 of 40 |
1 | purposes hereof. |
2 | (d) To own, hold, improve, operate, manage, and regulate utilities for properties subject to |
3 | its control or ownership and to establish rates, fees, and charges, to adopt regulations, and to impose |
4 | penalties for any services or utilities it provides, or causes to have available, and to have functions |
5 | and exercise powers as necessary and appropriate as the successor to the commerce corporation |
6 | under the provisions of §§ 42-64-4, 42-64-7.4, 42-64-7.8, 42-64-7.9 and 42-64-9.1 through 42-64- |
7 | 9.10, inclusive or under its own authority as granted by law. |
8 | (e) Subject to the provisions of this chapter, to enter into agreements with any city, town, |
9 | district, or public corporation with regard to application and/or administration of zoning or other |
10 | land use ordinances, codes, plans, or regulations, and cities, towns, districts, and public |
11 | corporations are hereby authorized and empowered, notwithstanding any other law to the contrary, |
12 | to enter into such agreements with the department and to do all things necessary to carry out their |
13 | obligations under such agreements. |
14 | (f) The provisions of § 42-64-13(d) shall apply to land, real estate assets and projects owned |
15 | by, under the supervision of, the department or lawfully approved by the secretary. |
16 | (g) To be exempt from taxation and to enter into agreements for payments in lieu of taxes |
17 | in the same manner as provided for in § 42-64-20. |
18 | (h) To establish a stormwater management and conveyance system and regulate |
19 | connections, user fees, charges and assessments in connection therewith on real estate assets or as |
20 | part of projects overseen, approved or controlled by the department. In particular, the department |
21 | shall have full and complete power and authority to: |
22 | (1) Limit, deny, or cause appropriate direct or indirect connections to be made between any |
23 | building or property, or from any location outside the property and discharging into a stormwater |
24 | management and conveyance systems built or maintained by the department. The secretary may |
25 | prescribe those rules and regulations for stormwater runoff that in his or her opinion, are necessary |
26 | and appropriate for the maintenance and operation of the stormwater management and conveyance |
27 | systems, and may establish, from time to time, rules and regulations relating to stormwater |
28 | management for its properties and projects. Any person or entity having an existing connection to |
29 | the stormwater management and conveyance systems or currently discharging into such systems, |
30 | will obtain a permit from the department in accordance with its rules and regulations. No person or |
31 | entity shall, without first being granted a written permit from the department in accordance with its |
32 | rules and regulations, make any future connection or permit any runoff from any structure or |
33 | property to any stormwater management and conveyance systems, or any appurtenance thereto, |
34 | without first being granted a written permit from the department in accordance with its rules and |
| LC005743 - Page 23 of 40 |
1 | regulations. |
2 | (2) Assess any person or entity having a direct or indirect connection (including, without |
3 | limitation, via runoff) to the a stormwater management and conveyance systems owned or |
4 | controlled by the department the reasonable charges for the use, operation, maintenance, and |
5 | improvements to the systems. The department shall also be entitled, in addition to any other |
6 | remedies available, to assess fines for violations of the rules and regulations established by the |
7 | department with respect to stormwater management. |
8 | (3) Collect the fees, charges, and assessments from any person or entity so assessed. Each |
9 | person or entity so assessed shall pay the fees, charges, or assessments within the time frame |
10 | prescribed by the rules and regulations of the department. The department may collect the fees, |
11 | charges, and assessments in the same manner in which taxes are collected by municipalities, with |
12 | no additional fees, charges, assessments, or penalties (other than those provided for in chapter 9 of |
13 | title 44). All unpaid charges shall be a lien upon the real estate of the person or entity. The lien shall |
14 | be filed in the records of land evidence for the city or town in which the property is located and the |
15 | department shall simultaneously, with the filing of the lien, give notice to the property owner. |
16 | Owners of property subject to a lien for unpaid charges are entitled to a hearing within fourteen |
17 | (14) days of the recording of the lien. |
18 | (4) Notwithstanding the provisions of subsection (h)(3) of this section, the department is |
19 | authorized to terminate the water supply service or prohibit the use of the department's stormwater |
20 | management and conveyance systems of any person or entity for the nonpayment of storm water |
21 | management user fees, charges, and assessments. The department shall notify the user of |
22 | termination of water supply or use of the stormwater management and conveyance systems at least |
23 | forty-eight (48) hours prior to ceasing service. The department may assess any person or entity any |
24 | fees, charges, and assessments affiliated with the shut off and restoration of service. |
25 | (5) Without in any way limiting the foregoing powers and authority, the department is also |
26 | hereby empowered to: |
27 | (i) Establish a fee system and raise funds for administration and operation of the stormwater |
28 | management and conveyance systems; |
29 | (ii) Prepare long-range, stormwater management master plans; |
30 | (iii) Implement a stormwater management district; |
31 | (iv) Retrofit existing structures to improve water quality or alleviate downstream flooding |
32 | or erosion; |
33 | (v) Properly maintain existing stormwater management and conveyance systems; |
34 | (vi) Hire personnel to carry out the functions of the stormwater management and |
| LC005743 - Page 24 of 40 |
1 | conveyance systems; |
2 | (vii) Receive grants, loans, or funding from state and federal water-quality programs; |
3 | (viii) Grant credits to property owners who maintain retention and detention basins or other |
4 | filtration structures on their property; |
5 | (ix) Make grants for implementation of stormwater management plans; |
6 | (x) Purchase, acquire, sell, transfer, or lease real or personal property; |
7 | (xi) Impose liens; |
8 | (xii) Levy fines and sanctions for noncompliance; |
9 | (xiii) Provide for an appeals process; and |
10 | (xiv) Contract for services in order to carry out the function of the stormwater management |
11 | and conveyance systems. |
12 | (i) To purchase and obtain water supply and water service from any city, town, water |
13 | district, or other water supply authority. In particular, the department is authorized to: |
14 | (1) Enter into agreements or contracts with any city, town, county, water district, or other |
15 | water supply authority to purchase, acquire, and receive water supply and water service. |
16 | (2) Enter into cooperative agreements with cities, towns, counties, water districts, or other |
17 | water supply authorities for the interconnection of facilities or for any other lawful corporate |
18 | purposes necessary or desirable to effect the purposes of this chapter. |
19 | (3) Connect the water supply system on any property or project controlled, approved, |
20 | owned or overseen by the department with any city, town, county, water district, or other water |
21 | supply authority that receives or has a connection with the city of Providence and/or the Providence |
22 | water supply board (or any successor thereof) and purchase, connect to, receive, and enter into |
23 | agreements to receive water supply from any city, town, county, water district, or other water |
24 | supply authority regardless of the origin of such water supply. The city of Providence and the |
25 | Providence water supply board (and any successor thereof) are authorized and directed to supply |
26 | water where deemed appropriate by the department either directly or via connections between the |
27 | property or project and any city, town, county, water district, or other water supply authority, |
28 | notwithstanding any terms to the contrary in any agreement, including, without limitation, any |
29 | agreement between any city, town, county, water district, or other water supply authority and the |
30 | city of Providence and/or the Providence water supply board (or its or their predecessors), or the |
31 | provisions of chapter 16 of title 39. In addition, the provisions of § 18 of chapter 1278 of the public |
32 | laws of Rhode Island of 1915 as amended, and any other public law that would conflict with the |
33 | terms hereof, are hereby amended to authorize the provision of water supply by the city of |
34 | Providence and the Providence water supply board (or any successor thereof) to any property or |
| LC005743 - Page 25 of 40 |
1 | project of the department and to authorize any additional connections in accordance herewith. |
2 | There shall be no requirement that the department demonstrate public necessity before entering into |
3 | such agreements, connecting to such water supplies, or receiving such water as described in this |
4 | subsection, but the department shall be subject to the other applicable provisions of chapter 15 of |
5 | title 46. |
6 | 42-162.3-4. Development of new housing. |
7 | The department shall formulate a program for the development of new housing units where |
8 | a portion of the housing is set aside from projects to ensure affordability. The program shall provide |
9 | for housing to be developed using assets, including, but not limited to, funds and real estate assets, |
10 | held by the land bank, the housing development fund and other sources available to the department. |
11 | The program shall solicit applications from businesses, not-for-profit entities and developers for |
12 | the construction of the housing units, or the department may undertake the work of development |
13 | by use of its staff and contracting with businesses, individuals and entities for the completion of |
14 | the work. The department sponsored residential development program shall have general criteria |
15 | that applies to the construction of all housing units and housing structures as well as specific criteria |
16 | that applies based on different project sizes as further described in this section. |
17 | 42-162.3-5. Municipal sponsored residential development projects. |
18 | (a) The department shall administer a municipal sponsored residential development project |
19 | program where the department is permitted to provide funding from the housing development fund |
20 | and/or land from the land bank in support of the municipal residential development project which |
21 | is primarily built for affordable housing, workforce eligible housing or disability housing purposes |
22 | with appropriate dispositions and deed restrictions as provided in this chapter. |
23 | (b) Municipal sponsored projects. For any project sponsored by a municipality an |
24 | application shall be presented to the department for funding or for the provision of land through the |
25 | land bank. Any funding shall be made contingent on completion of the project, the issuance of |
26 | certificates of occupancy and disposition to owners or lessees. No less than fifty percent (50%) of |
27 | the housing units must be made available for affordable housing, and no less than seventy-five |
28 | percent (75%) shall be made available for affordable housing and workforce eligible housing in |
29 | any project. A lien shall exist on any real estate which is transferred from the department and all |
30 | improvements made thereon which shall be forgiven upon completion of the project and disposition |
31 | to an eligible owner. For any municipally sponsored project the municipality must provide at least |
32 | ten percent (10%) of the funds or one hundred thousand dollars ($100,000), whichever is less, for |
33 | the funding of the project. The municipality's portion of the funding may be satisfied by grants, |
34 | contributions, donations or other sources and need not be derived from the municipality’s general |
| LC005743 - Page 26 of 40 |
1 | revenues or general fund. |
2 | 42-162.3-6. Criteria for development projects under this chapter. |
3 | (a) The general criterial applying to the original construction of all new housing |
4 | developments sponsored by the department shall include the following: |
5 | (1) Each housing structure shall have at least one housing unit. In structures with two (2) |
6 | or more housing units, the units shall be separately accessible from a common area or from the |
7 | outside and able to be locked by the occupants. |
8 | (2) Each housing structure shall be constructed using similar materials of similar type, |
9 | grade, size, quantity and quality and appear to be relatively uniform except as to color of siding or |
10 | paint and any land characteristics specific to the parcel, whether divided or subdivided or not. |
11 | (3) Each housing structure's internal features shall be relatively uniform as to the type, |
12 | grade, size, quantity and quality of materials, the number of rooms, and the size of rooms, except |
13 | that disability or accessible housing may have larger dimensions and a different design to |
14 | accommodate for the needs of the proposed occupants; |
15 | (4) Construction shall comply with all applicable building codes. |
16 | (5) Construction shall ensure sufficient utility service including, but not limited to: |
17 | (i) Water by private wells of acceptable water quality, flow rate and quantity; or public |
18 | water supply access; |
19 | (ii) Sewer or sufficient treatment or septic facilities compliant with department of |
20 | environmental management regulations and the law; |
21 | (iii) Electric; |
22 | (iv) Either natural gas connection, or oil or propone storage for each housing structure with |
23 | separate meters or tanks for each housing unit; |
24 | (v) Broadband or higher Internet connectivity. |
25 | (6) Housing structures shall be built to be energy efficient, with such further requirements |
26 | as determined by the secretary in consultation with the state building code commission and the |
27 | office of energy efficiency; |
28 | (7) Located, when possible, near existing public transportation. |
29 | (8) Shall be constructed in a manner where the housing structures are built to look similar |
30 | to other existing structures present in the community or municipality where the project is located. |
31 | (9) Shall contain sufficient parking accommodations for occupants and guests. |
32 | (b) Specific criteria for housing developments sponsored by the department dependent on |
33 | project size are as follows: |
34 | (1) Developments of ten (10) or more housing structures. In all projects where there are ten |
| LC005743 - Page 27 of 40 |
1 | (10) or more housing structures the following criteria shall be required: |
2 | (i) At least one unit for each ten (10) structures shall be designed and constructed to be |
3 | fully handicapped accessible in all areas of the housing unit; |
4 | (ii) Twenty-five percent (25%) of the housing units shall be designated as affordable |
5 | housing units; |
6 | (iii) Seventy-five percent (75%) of the housing units shall be designated as either workforce |
7 | eligible housing or affordable housing; |
8 | (iv) The remaining housing units shall be eligible to be sold at full market rates; |
9 | (v) The development shall provide for sufficient parking facilities for each housing unit |
10 | either at each unit or on common land such that there are two (2) parking spots for each housing |
11 | unit plus a handicapped parking space for each handicapped accessible housing unit; |
12 | (vi) An area of the development shall be reserved for recreational space sufficient in size |
13 | and location to be accessible by the whole development and useful to the residents therein; |
14 | (vii) For the development of real estate parcels equal to or larger than ten (10) acres before |
15 | any division or subdivision thereof, twenty-five percent (25%) of the parcel shall be held for open |
16 | or forest space; and |
17 | (viii) Any other additional criteria that the department shall deem appropriate for the |
18 | purposes of this chapter and the program. |
19 | (2) Developments of five (5) to nine (9) housing structures. In all projects where there are |
20 | five (5) to nine (9), inclusive, housing structures: |
21 | (i) At least one housing unit shall be designed and constructed to be fully handicapped |
22 | accessible in all areas of the housing unit; |
23 | (ii) Thirty percent (30%) of the housing units shall be designated as affordable housing |
24 | units; |
25 | (iii) Fifty percent (50%) of the housing units shall be designated as workforce eligible |
26 | housing or affordable housing; |
27 | (iv) The remaining housing units shall be eligible to be sold at full market rates; |
28 | (v) The development shall provide for sufficient parking facilities for each housing unit |
29 | either at each unit or on common land such that there are two (2) parking spots for each housing |
30 | unit plus a handicapped parking space for each handicapped accessible housing unit; and |
31 | (vi) Any other additional criteria that the department shall deem appropriate for the |
32 | purposes of this chapter and the program. |
33 | (3) Developments of one to four (4) housing structures. In all projects where there are one |
34 | to four (4), inclusive, housing structures: |
| LC005743 - Page 28 of 40 |
1 | (i) Fifty percent (50%) of the housing units shall be designated as affordable housing units; |
2 | (ii) Sixty percent (60%) of the housing units shall be designated as workforce eligible |
3 | housing or affordable housing; |
4 | (iii) The remaining housing units shall be eligible to be sold at full market rates; |
5 | (iv) The development shall provide for sufficient parking facilities for each housing unit |
6 | either at each unit or on common land such that there are two (2) parking spots for each housing |
7 | unit; and |
8 | (v) Any other additional criteria that the department shall deem appropriate for the purposes |
9 | of this chapter and the program. |
10 | 42-162.3-7. Authorization to develop additional criteria for projects. |
11 | In developing the program and any regulations, additional criteria or bylaws that the |
12 | department may adopt, the secretary shall seek input from the building and trade industry |
13 | representatives, pertinent not-for-profit entities, municipalities, other state agencies and the public. |
14 | 42-162.3-8. Protecting and improving existing multifamily housing. |
15 | The department shall administer a program for the protection and improvement of existing |
16 | multifamily housing. The department may purchase multifamily residence units, provide low |
17 | interest or no-interest loans, forgivable loans, gap funding, or any combination of the above to |
18 | owners of multifamily units, builders, not-for-profit corporations and developers to ensure that |
19 | multifamily housing units are not closed or lost. No portion of the program shall be used for |
20 | payment of rent of occupied units or purchase mortgage relief for owners. In formulating policies |
21 | for this program, the department shall work with public housing authorities, the Rhode Island |
22 | housing and mortgage finance corporation, not-for-profits and other businesses, entities and |
23 | individuals to coordinate resources and ensure both that there is a remedy when no other remedy |
24 | exists and that there is as little financial and administrative duplication as possible. The department |
25 | shall also operate the program in such a manner that it will act as a clearinghouse or "one-stop |
26 | shop" for information for owners, investors, occupants and residents for the protection and |
27 | improvement of existing multifamily housing units. |
28 | 42-162.3-9. Rehabilitation of closed and endangered multifamily housing. |
29 | The department shall administer a program for the rehabilitation of multifamily housing |
30 | that is no longer rented to tenants and to rehabilitate multifamily units that are endangered of being |
31 | lost from the market. The department may purchase multifamily residence units, provide low |
32 | interest or no-interest loans, forgivable loans, gap funding, or any combination of the above to |
33 | builders, not-for-profit corporations and developers and owners of multifamily units to ensure that |
34 | previously operational, but currently closed multifamily housing units are brought back to the |
| LC005743 - Page 29 of 40 |
1 | market and that endangered multifamily housing units are not closed or lost. Endangered |
2 | multifamily units may include, but not be limited to, properties in receivership, properties in |
3 | bankruptcy, properties in foreclosure, properties in tax sale, properties with building code |
4 | violations, properties with fire code violations, properties with municipal code violations, |
5 | properties with zoning violations, properties with lead paint hazards, properties with fire code |
6 | violations, properties in high market rent areas where consolidation of multiple units into a single |
7 | unit are threatened, units where portions of the unit have been previously and lawfully rented as |
8 | separate units, and other properties as determined by the department. In formulating policies for |
9 | this program, the department shall work with public housing authorities, the Rhode Island housing |
10 | and mortgage finance corporation, not-for-profits and other businesses, entities and individuals to |
11 | coordinate resources and ensure both that there is a remedy when no other remedy exists and that |
12 | there is as little financial and administrative duplication as possible. The department shall also |
13 | operate the program in such as manner that it will act as a clearinghouse or "one-stop shop" for |
14 | information for owners, investors, occupants and residents for the protection and improvement of |
15 | existing multifamily housing units. |
16 | 42-162.3-10. Municipal incentives for housing development. |
17 | (a) Municipalities are encouraged to approve and sponsor affordable housing and |
18 | workforce eligible housing development. For municipalities that approve and sponsor such projects |
19 | the following adjustments to their municipal and education aid shall be made: |
20 | (1) For projects approved by the municipality and the department after the effective date |
21 | of this act, but before July 1, 2023, education aid shall be increased to the local education authority |
22 | on a per capita basis for each additional student enrolled in public schools in an amount equal to |
23 | the district's per pupil cost multiplied by one hundred percent (100%) for each additional child |
24 | living in such housing for a period of five (5) years and a bonus of half of the increase shall be |
25 | provided to the municipality in which the student's residence in the new housing unit is located for |
26 | a period of five (5) years. In the event a student who moves into housing developed under this |
27 | section requires special education services the department of education shall pay for ninety percent |
28 | (90%) of the student's additional services each year above the per pupil cost for the period the |
29 | student remains in the housing unit or remains as a student in the district, whichever is less. |
30 | (2) For projects approved by the municipality and the department on or after July 1, 2023 |
31 | and before January 1, 2024 education aid shall be increased to the local education authority on a |
32 | per capita basis for each additional student enrolled in public schools in an amount equal to the |
33 | district’s per pupil cost multiplied by seventy-five percent (75%) for each additional child living in |
34 | such housing for a period of five (5) years and a bonus of half of the increase shall be provided to |
| LC005743 - Page 30 of 40 |
1 | the municipality in which the student's residence in the new housing unit is located for a period of |
2 | five (5) years. In the event a student who moves into housing developed under this section requires |
3 | special education services the department of education shall pay for seventy-five percent (75%) of |
4 | the student's additional services each year above the per pupil cost for the period the student remains |
5 | in the housing unit or remains as a student in the district, whichever is less. |
6 | (3) For projects approved by the municipality and the department on or after January 1, |
7 | 2024 and before July 1, 2024 education aid shall be increased to the local education authority on a |
8 | per capita basis for each additional student enrolled in public schools in an amount equal to the |
9 | district's per pupil cost multiplied by fifty percent (50%) for each additional child living in such |
10 | housing for a period of five (5) years and a bonus of half of the increase shall be provided to the |
11 | municipality in which the student's residence in the new housing unit is located for a period of five |
12 | (5) years. In the event a student who moves into housing developed under this section requires |
13 | special education services the department of education shall pay for fifty percent (50%) of the |
14 | student's additional services each year above the per pupil cost for the period the student remains |
15 | in the housing unit or remains as a student in the district, whichever is less. |
16 | (4) For projects approved by the municipality and the department on or after July 1, 2024 |
17 | but before July 1, 2026, education aid shall be increased to the local education authority on a per |
18 | capita basis for each additional student enrolled in public schools in an amount equal to the district's |
19 | per pupil cost multiplied by twenty-five percent (25%) for each additional child living in such |
20 | housing for a period of three (3) years and a bonus of half of the increase shall be provided to the |
21 | municipality in which the student's residence in the new housing unit is located for a period of five |
22 | (5) years. In the event a student who moves into housing developed under this section requires |
23 | special education services the department of education shall pay for twenty-five percent (25%) of |
24 | the student's additional services each year above the per pupil cost for the period the student remains |
25 | in the housing unit or remains as a student in the district, whichever is less. |
26 | (5) For projects approved on or after July 1, 2026, no bonus municipal aid or education aid |
27 | shall be awarded under this section. |
28 | (6) The education aid calculations made in subsections (a)(1) through (a)(4) of this section |
29 | inclusive shall be adjusted based on the municipality's attainment of the goals set out in chapter 53 |
30 | of title 45. When any municipally approved project increases the number of affordable housing |
31 | units the projected total upon completion shall be used to determine the aid in this section. The |
32 | calculation of the aid adjustment shall be made irrespective of whether the municipality has been |
33 | deemed to have a feasibility condition or exemption from percentage of affordable housing set out |
34 | in chapter 53 of title 45. Education aid increases set out in this section shall be adjusted as follows: |
| LC005743 - Page 31 of 40 |
1 | (i) For projects approved prior to July 1, 2023 no adjustment shall be made; |
2 | (ii) For projects approved on or after July 1, 2023 municipalities shall have their increase |
3 | reduced by the ratio of the difference between ten percent (10%) and the projected amount attained |
4 | after completion of all approved projects divided by the ten percent (10%) requirement. In no event |
5 | shall the amount be reduced below fifty percent (50%) of the increase that would have been |
6 | awarded had no reduction been made pursuant to this subsection. |
7 | (7) The general assembly shall ensure that the bonus aid provisions contained within this |
8 | section are appropriated for each year. |
9 | 42-162.3-11. Enforcement of minimum affordable housing standards. |
10 | (a) Beginning July 1, 2026, in any city or town where the benchmark for affordable housing |
11 | set in chapter 53 of title 45 has not been satisfied, irrespective of any determination of infeasibility |
12 | or exemption from the ten percent (10%) threshold for affordable housing, affordable housing |
13 | planned development units to be constructed pursuant to chapter 53 of title 45 shall not need |
14 | approval of the municipality, notwithstanding any municipal law or other statute to the contrary, |
15 | but instead shall be required to seek approval solely from the department. |
16 | (b) With regard to an affordable housing development undertaken by the department or by |
17 | an applicant who applies to the department for project approval pursuant to subsection (a) of this |
18 | section, the department shall require that the project comply with municipal laws in effect in the |
19 | municipality where the project is located, except that a project does not need to comply with any |
20 | comprehensive plan, any restrictions on building, any restrictions on the use or planned use |
21 | infrastructure or other restrictions inhibiting development and such restrictions shall not be valid |
22 | as against projects approved by the department. Further, the following requirements authorized as |
23 | standard provisions that may be imposed under a municipal zoning law or other municipal |
24 | ordinance shall not apply to any project approved by the department: |
25 | (1) The dimensions, size, lot coverage, floor area ratios, and layout of lots or development |
26 | areas; |
27 | (2) The density and intensity of use; |
28 | (3) Any other requirement imposed pursuant to § 45-24-33(a)(4)(x); and |
29 | (c) For any project proposed, approved or undertaken under this section the provisions of |
30 | § 42-162.3-6(b)(3) shall apply and if less than five (5) units are being produced then that at least |
31 | fifty percent (50%) of the units must be reserved for affordable housing units and twenty-five (25%) |
32 | must be reserved for workforce eligible housing units and if less than five (5) units are being |
33 | produced all of the units must be reserved for affordable housing units. |
34 | (d) Any appeal of an approval or denial by the department of any project under this section |
| LC005743 - Page 32 of 40 |
1 | shall be made to the superior court within thirty (30) days of the approval or denial being mailed to |
2 | the applicant in writing and be given priority on the trial calendar. Upon review, the superior court |
3 | shall determine whether the secretary or the department abused its discretion and if not the appeal |
4 | shall be denied. The question on appeal shall be treated as a matter of law that may be resolved on |
5 | summary judgment. In the event the applicant is allowed to proceed, the the applicant as a |
6 | prevailing party is entitled to costs, attorneys' fees and costs of litigation from any party that caused |
7 | the appeal to be brought to the superior court, along with an award of all interest charges incurred |
8 | due to a delay in the project. |
9 | (e) Neither a municipality nor an abutter shall have any rights to appeal a decision of the |
10 | department. The sole remedy of an abutter shall be an action at law for any direct damages made |
11 | to their property or for personal injuries. |
12 | (f) Beginning on the effective date of this act: |
13 | (1) Whenever any municipality lacks the resources, personnel or ability to approve a |
14 | project, provide a certificate, make an inspection any aspect of a project or any other matter related |
15 | to a project that has been approved by the department the municipality shall notify the department |
16 | in writing within three (3) business days. Upon notification, the department may provide personnel |
17 | to undertake the inspection or work on the approval of any project it has approved and such |
18 | inspection or approval work shall be deemed to be an approval by the municipality; and |
19 | (2) Any failure by a municipality to act on a request by an applicant of a project approved |
20 | by the department or by the department for an approval, certificate, inspection or other matter |
21 | within thirty (30) days shall be deemed to constitute an inability to undertake the necessary work. |
22 | After the expiration of thirty (30) days, the department shall make a written determination of such |
23 | and provide a copy of the determination to the municipality. After providing the notice to the |
24 | municipality, the department may provide the staffing to make the necessary determination that is |
25 | impeding the progress of the department within thirty (30) days and such an approval shall be |
26 | deemed to be an approval by the municipality. |
27 | 42-162.3-12. Coordination with Rhode Island infrastructure bank. |
28 | The department shall act in coordination with the Rhode Island infrastructure bank to |
29 | ensure the availability of resources to ensure the success of applicants and of the expansion of |
30 | housing units through development. The department is authorized to act as a clearing house for |
31 | information, to act as a point of contact for applicants and others to achieve help from the Rhode |
32 | Island infrastructure bank on eligible projects where funding, assistance and expertise may be |
33 | available from the Rhode Island infrastructure bank. |
34 | 42-162.3-13. Coordination with other state agencies and quasi-publics. |
| LC005743 - Page 33 of 40 |
1 | The department shall act in coordination with all other state agencies, quasi-publics, and |
2 | municipalities, who in turn are hereby required to assist and consult with the department to ensure |
3 | the availability of resources and information to ensure the success of applicants and of the |
4 | expansion of housing units through development. The department is authorized to act as a clearing |
5 | house for information, to act as a point of contact for applicants and others to achieve help from |
6 | other state and local public bodies and quasi-publics where funding, assistance and expertise may |
7 | be available from said state and local public bodies and quasi-publics. |
8 | 42-162.3-14. Restrictions on dispositions of projects and housing units by the |
9 | department and/or the land bank. |
10 | (a) Upon approval of any project the department shall have a lien against the property on |
11 | which the project is located which shall be discharged upon the completion of the project and proper |
12 | sale in accordance with this section. In the event that the project is not completed and the |
13 | department determines that the project cannot be completed by the party in charge of the |
14 | development the department shall have the right to foreclose on the lien through a non-judicial |
15 | foreclosure, take a deed-in-lieu of foreclosure or otherwise resort to the remedies existing in law |
16 | and equity of a first-position secured creditor. |
17 | (b) Upon completion of a project, residential housing units may only be sold to: |
18 | (1) Individuals who are first-time homebuyers for owner-occupied housing. |
19 | (i) Any housing approved by the department, whether built or operated by any public |
20 | agency or any nonprofit organization or by any limited equity housing cooperative or any private |
21 | developer, that is developed under any program administered by the department shall contain a |
22 | deed restriction that requires that the housing unit remain owner-occupied and not rented and that |
23 | any resale requires that the new purchaser must be a first-time homebuyer in the same category the |
24 | seller was when the seller purchased the structure (i.e. affordable housing, workforce eligible |
25 | housing, or market price housing). The deed restriction shall be enforceable by the department for |
26 | ninety-nine (99) years from the original grant or such other period that is either agreed to by the |
27 | applicant who originally develops the project and department but that is not less than thirty (30) |
28 | years from initial occupancy. Any violation of the deed restriction results in a reversion of the unit |
29 | to the department for sale to another person qualifying under this section. |
30 | (ii) In the event of the death of an owner of a housing unit produced under a program |
31 | administered by the department and still subject to the deed restriction described in this section |
32 | then a family member or next of kin shall be entitled to inherit the housing unit so long as they |
33 | occupy the housing unit within nine (9) months of the date of death of the decedent irrespective of |
34 | their income level and thereafter the housing unit remains owner-occupied by the heir, family |
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1 | member or next of kin. In the event the heir, family member or next of kin does not occupy the |
2 | housing unit within nine (9) months the department shall make an allowance to purchase the |
3 | housing unit at fair market value and pay the money to the estate of the decedent. Upon purchase |
4 | by the department the housing unit shall be resold by the department as if it were the first sale after |
5 | development and the unit shall remain in the same category for sale (i.e. affordable housing, |
6 | workforce related housing, market rate housing) as the housing unit was designated by the |
7 | developer with a new deed restriction period in the subsequent sale. |
8 | (2) Not-for-profit entities or agencies whose mission is to provide affordable, low cost, or |
9 | workforce eligible housing for rent. Upon the sale, a deed restriction shall be in place enforceable |
10 | by the department that requires units to be rented solely to individuals and/or families for primary |
11 | housing in eligible categories (i.e. affordable housing, low cost, or workforce eligible housing). |
12 | Such a restriction shall be perpetual or for the life of the entity granted the property. After the entity |
13 | is provided notice of the violation by the department and being provided a reasonable opportunity |
14 | to cure, any violation of the deed restriction results in a reversion of the parcel with all |
15 | improvements upon which the housing structure or housing unit in violation is located. |
16 | 42-162.3-15. Reporting. |
17 | (a) The department shall submit to the governor, the president of the senate, the speaker of |
18 | the house, within six (6) months after the close of its fiscal year, a complete and detailed report |
19 | setting forth: |
20 | (1) Its operations and accomplishments; |
21 | (2) Its receipts and expenditures during the fiscal year in accordance with the categories |
22 | and classifications established by the department for its operating and capital outlay purposes |
23 | including a listing of all private consultants engaged by the department on a contract basis and a |
24 | statement of the total amount paid to each private consultant; |
25 | (3) Its assets and liabilities at the end of its fiscal year including a schedule of its leases and |
26 | mortgages and the status of the reserve, special or other funds; |
27 | (4) Its strategic plan and operating plan for the current fiscal year and proposed for the next |
28 | fiscal year; |
29 | (5) A general statement of needs and opportunities relevant to its purposes; and |
30 | (6) A listing of all fees paid to attorneys paid during the fiscal year. The reports required |
31 | by subsections (a)(1) and (a)(3) of this section shall be prepared by independent certified public |
32 | accountants in accordance with generally accepted principles of accounting. |
33 | 42-162.3-16. Inconsistent provisions. |
34 | Insofar as the provisions of this chapter are inconsistent with the provisions of any other |
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1 | law or ordinance, general, special or local, the provisions of this chapter shall be controlling. |
2 | 42-162.3-17. Construction. |
3 | This chapter, being necessary for the welfare of the state and its inhabitants, shall be |
4 | liberally construed so as to effectuate its purposes. |
5 | 42-162.3-18. Severability. |
6 | If any clause, sentence, paragraph, section, or part of this chapter shall be adjudged by any |
7 | court of competent jurisdiction to be invalid, that judgment shall not affect, impair, or invalidate |
8 | the remainder of the chapter but shall be confined in its operation to the clause, sentence, paragraph, |
9 | section, or part directly involved in the controversy in which that judgment shall have been |
10 | rendered. |
11 | SECTION 6. Section 37-6-6 of the General Laws in Chapter 37-6 entitled "Acquisition of |
12 | Land" is hereby amended to read as follows: |
13 | 37-6-6. Notice to Rhode Island economic development corporation of proposed |
14 | acquisition or disposal. |
15 | Before acquiring and before disposing of any land or other real property or any interest, |
16 | estate, or right therein, by conveyance, grant, lease, or license, except by license terminable by will, |
17 | the acquiring authority shall give written notice of its contemplated or proposed action to the Rhode |
18 | Island economic development corporation commerce corporation and the housing department and |
19 | its land bank and development programs and afford the corporation or the department a reasonable |
20 | opportunity to study and make its recommendations thereon. |
21 | SECTION 7. Section 42-64-11 of the General Laws in chapter 42-64 entitled "Rhode Island |
22 | Commerce Corporation" is hereby amended to read as follows: |
23 | 42-64-11. Disposition of projects. |
24 | (a) Notwithstanding the provisions of any other law, the Rhode Island commerce |
25 | corporation may sell or lease to any person, firm, partnership, or corporation, or to any local |
26 | redevelopment agency, or to any state or federal agency or instrumentality, or to any municipality |
27 | or political subdivision of the state empowered to enter into the sale or lease, any project without |
28 | public bidding or public sale, for consideration and upon terms as may be agreed upon between the |
29 | corporation and the purchaser or lessee; provided that in the case of a lease, the term shall not |
30 | exceed ninety-nine (99) years. The sale or lease or agreement may be consummated as entered into |
31 | prior to, at the date of, or subsequent to the acquisition of completion of the project. Where a |
32 | contract of sale or lease is entered into prior to the completion of construction of the project to be |
33 | conveyed or leased, the corporation may complete the project prior or subsequent to the |
34 | consummation of the sale or lease. |
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1 | (b) In connection with the corporation's disposition by sale, lease, or otherwise of any of |
2 | its projects, the corporation is authorized to require that the party acquiring the project, or any |
3 | interest therein or any right to use or occupy the project, may not sell, assign, convey, lease, |
4 | sublease, or otherwise dispose of, in whole or in part, its interest in the project or its right to use |
5 | and occupy the project without the approval, in writing, of the corporation. The corporation may |
6 | not unreasonably withhold that approval; and shall state the reason or reasons upon which that |
7 | withholding of approval is based. In determining whether to grant or withhold that approval, the |
8 | corporation shall consider whether the proposed disposition will further the purposes of this chapter |
9 | and may consider any and all other relevant factors as well. |
10 | (c) The provisions of subsection (b) shall not be deemed to limit in any manner the |
11 | corporation's authority in connection with the disposition by sale, lease, or otherwise of any of its |
12 | projects or to impose those terms and conditions permitted by law with respect to those dispositions |
13 | as it shall determine to be desirable. |
14 | (d) The corporation shall dispose, by sale, lease, transfer or other agreement, of projects on |
15 | or related to former Navy lands in the town of North Kingstown through the Quonset Development |
16 | Corporation as provided for in chapter 64.10 of this title and may dispose, by sale, lease, transfer |
17 | or other agreement, of other projects related to land and real estate development, regardless of |
18 | location in Rhode Island, through the Quonset Development Corporation as may be mutually |
19 | agreeable to the corporation and the Quonset Development Corporation. |
20 | (e) The corporation may dispose, by sale, lease, transfer or other agreement, of other |
21 | projects related to land and real estate development, regardless of location in Rhode Island, to the |
22 | housing department as may be mutually agreeable to the corporation and the secretary of housing. |
23 | SECTION 8. Section 45-24-28 of the General Laws in Chapter 45-24 entitled "Zoning |
24 | Ordinances" is hereby amended to read as follows: |
25 | 45-24-28. Continuation of ordinances -- Supercession -- Relation to other statutes. |
26 | (a) Any zoning ordinance or amendment of the ordinance enacted after January 1, 1992, |
27 | shall conform to the provisions of this chapter. All lawfully adopted zoning ordinances shall be |
28 | brought into conformance with this chapter by December 31, 1994. Each city and town shall review |
29 | its zoning ordinance and make amendments or revisions that are necessary to bring it into |
30 | conformance with this chapter. |
31 | (b) All zoning ordinances adopted under authority of §§ 45-24-1 through 45-24-26 or any |
32 | special zoning enabling act that is in effect on June 17, 1991, shall remain in full force and effect |
33 | until December 31, 1994, unless earlier amended so as to conform to the provisions of this chapter, |
34 | except that § 45-24-37 and § 45-24-44 shall become effective on January 1, 1992. |
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1 | (c) Former §§ 45-24-1 through 45-24-26 and all special zoning enabling acts, including, |
2 | but not limited to, chapter 2299 of the public laws of 1922, as amended (town of Westerly); chapter |
3 | 1277 of the public laws of 1926, as amended (town of Narragansett); chapter 2065 of the public |
4 | laws of 1933, as amended (town of West Warwick); chapter 2233 of the public laws of 1935, as |
5 | amended (town of Johnston); chapter 2079 of the public laws of 1948, as amended (town of North |
6 | Kingstown); chapter 3125 of the public laws of 1953, as amended (town of New Shoreham); |
7 | chapter 101 of the public laws of 1973, as amended (town of South Kingstown); are repealed |
8 | effective December 31, 1994. All provisions of zoning ordinances adopted under authority of the |
9 | provisions of former §§ 45-24-1 through 45-24-26 or of any special act are repealed and are null |
10 | and void as of December 31, 1994, unless amended so as to conform to the provisions of this |
11 | chapter. |
12 | (d) Chapter 24.1 of this title, entitled "Historical Area Zoning", and chapter 3 of title 1, |
13 | entitled "Airport Zoning", are not superseded by this chapter; provided, that any appeal to the |
14 | superior court pursuant to chapter 24.1 of this title, entitled "Historical Area Zoning", or pursuant |
15 | to chapter 3 of title 1, entitled "Airport Zoning", is taken in the manner provided in § 45-24-69. |
16 | (e) Nothing in this chapter shall be construed to limit the authority of agencies of state |
17 | government to perform any regulatory responsibilities. |
18 | (f) Nothing in this chapter shall be construed to supersede or interfere with development |
19 | undertaken by the housing department or its programs in accordance with chapters 162 through |
20 | 162.3 of title 42. |
21 | SECTION 9. Chapter 42-11 of the General Laws entitled "Department of Administration" |
22 | is hereby amended by adding thereto the following section: |
23 | 42-11-10.2. Transfer of powers and coordination upon creation of the housing |
24 | department. |
25 | (a) Those powers, duties and responsibilities listed in § 42-11-10 related to the preparing, |
26 | adoption, and amendment of strategic plans for the physical, economic, and social development of |
27 | the state related to all powers related to residential housing including, but not limited to, the |
28 | planning, policy and implementation such plans are hereby transferred to the department of housing |
29 | and the department of housing shall be exempt from § 42-11-10 pursuant to § 42-11-10(b)(2). |
30 | (b) The secretary of housing, or designee shall serve on the state planning council under § |
31 | 42-11-10(e) in the place of the housing resources commission under § 42-11-10(e)(5). |
32 | (c) The primary obligation of developing a statewide housing plan shall lie with the |
33 | department of housing. |
34 | (d) The secretary of housing to the extent feasible and practicable shall coordinate activities |
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1 | in the planning and development of policy for residential housing with the department of |
2 | administration, the state planning council and the division of statewide planning. |
3 | SECTION 10. This act shall take effect on January 1, 2023. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT -- APPROPRIATIONS -- | |
AMERICAN RECOVERY PROGRAM ACT HOUSING FUND AND CREATING RELIABLE | |
EFFICIENT AFFORDABLE TENANCIES EXPEDITIOUSLY -- "CREATE" HOMES ACT | |
*** | |
1 | This act would create a new department of housing, a housing development fund, and a |
2 | housing land bank program to help create reliable, efficient, affordable tenancies. |
3 | This act would take effect on January 1, 2023. |
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