act24036

LA 036

2024 -- S 3093
Enacted 06/17/2024

A N A C T

AUTHORIZING THE TOWN OF NARRAGANSETT TO FUND AFFORDABLE HOUSING IN THE TOWN OF NARRAGANSETT AND TO ISSUE NOT MORE THAN $3,000,000 BONDS AND NOTES THEREFOR

Introduced By: Senator Alana DiMario

Date Introduced: May 24, 2024

It is enacted by the General Assembly as follows:

SECTION 1. The town of Narragansett is hereby empowered, in addition to authority

previously granted, to issue bonds to an amount not exceeding three million dollars ($3,000,000)

from time to time under its corporate name and seal or a facsimile of such seal. The bonds of each

issue may be issued in the form of serial bonds or term bonds or a combination thereof and shall be

payable either by maturity of principal in the case of serial bonds or by mandatory serial redemption

in the case of term bonds, in annual installments of principal, the first installment to be not later

than five (5) years and the last installment not later than thirty (30) years after the date of the bonds.

For each issue the amounts payable annually for principal and interest combined either shall be as

nearly equal from year to year as is practicable in the opinion of the officers authorized to issue the

bonds, or shall be arranged in accordance with a schedule providing for a more rapid amortization

of principal.

SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the town

treasurer and the president of the town council and shall be issued and sold in such amounts as the

town council may authorize by resolution. The manner of sale, denominations, maturities, interest

rates and other terms, conditions and details of any bonds or notes issued under this act may be

fixed by the resolution of the town council authorizing the issue or by separate resolution of the

town council or, to the extent provisions for these matters are not so made, they may be fixed by

the officers authorized to sign the bonds or notes. The proceeds derived from the sale of the bonds

shall be delivered to the town treasurer, and such proceeds exclusive of premiums and accrued

interest shall be expended for: (1) Affordable housing in the town of Narragansett including, but

not limited for, appropriations to the town’s affordable housing trust established by town ordinance,

as said ordinance may be amended from time to time, programs to implement the town’s affordable

housing plan as may exist from time to time and adopted pursuant to chapter 53 of title 45, as the

same may be amended from time to time, and/or for other affordable housing purposes as

determined by the town council (which may include without limitation: (i) Acquisition of land for

lease to public agencies and nonprofit organizations for affordable housing; (ii) Grants and other

direct financial support to low- and moderate-income home purchasers; (iii) Grants, revolving loans

and forgivable loans for rehabilitation, creation of accessory dwelling units and/or for the

development, acquisition or preservation of affordable housing; and all costs incidental thereto);

(b) In payment of the principal of or interest on temporary notes issued under section 3 of this act;

or (c) In repayment of advances under section 4 of this act. No purchaser of any bonds or notes

under this act shall be in any way responsible for the proper application of the proceeds derived

from the sale thereof. The appropriations to the town’s affordable housing trust, the expenditure of

funds and/or projects shall be carried out and all contracts made therefor on behalf of the town by

the town council or as may be otherwise directed by the town council. The proceeds of bonds or

notes issued under this act, any applicable federal or state assistance and the other monies referred

to in section 6 of this act shall be deemed appropriated for the purposes of this act without further

action than that required by this act. The bond issue authorized by this act may be consolidated for

the purposes of issuance and sale with any other bond issue of the town heretofore or hereafter

authorized; provided that, notwithstanding any such consolidation, the proceeds from the sale of

the bonds authorized by this act shall be expended for the purposes set forth above.

SECTION 3. The town council may by resolution authorize the issue from time to time of

interest bearing or discounted notes in anticipation of the authorization or issue of bonds or in

anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original

notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued

under this act and the amount of original notes issued in anticipation of federal or state aid may not

exceed the amount of available federal or state aid as estimated by the treasurer. Temporary notes

issued hereunder shall be signed by the treasurer and by the president of the town council and shall

be payable within five (5) years from their respective dates, but the principal of and interest on

notes issued for a shorter period may be renewed or paid from time to time by the issue of other

notes hereunder; provided, the period from the date of an original note to the maturity of any note

issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years.

SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu

of any authorization or issue of notes hereunder, the treasurer, with the approval of the town

council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the treasury

of the town to the purposes specified in section 2, such advances to be repaid without interest from

the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal or

state assistance or from other available funds.

SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal

or state assistance, pending their expenditure may be deposited or invested by the treasurer, in

demand deposits, time deposits or savings deposits in banks which are members of the Federal

Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of

America or by any agency or instrumentality thereof or as may be provided in any other applicable

law of the State of Rhode Island.

SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall

be applied to the payment of the first interest due thereon. Any premiums arising from the sale of

bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of

funds hereunder shall, in the discretion of the treasurer, be applied to the cost of preparing, issuing

and marketing bonds or notes hereunder to the extent not otherwise provided, to the payment of the

cost of the projects or to the cost of additional improvements coming within the description of the

projects in section 2 of this act, to the payment of the principal of or interest on bonds or notes

issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and

marketing bonds or notes hereunder may also, in the discretion of the treasurer, be met from bond

or note proceeds exclusive of accrued interest or from other monies available therefor. Any balance

of bond or note proceeds remaining after payment of the cost of the projects and said additional

improvements and the cost of preparing, issuing and marketing bonds or notes hereunder shall be

applied to the payment of the principal of or interest on bonds or notes issued hereunder. In

exercising any discretion under this section, the treasurer shall be governed by any instructions

adopted by resolution of the town council. The treasurer is authorized to take any action deemed

by them necessary: (1) To assure that interest on the bonds or notes issued hereunder remains

excludable from gross income of the recipients thereof for federal income tax purposes, including,

without limitation, paying to the federal government any rebate of earnings derived from the deposit

or investment of the proceeds of such bonds or notes that may be required therefor; (2) To sell the

bonds or notes under any financing program with the Rhode Island infrastructure bank; and (3) To

comply with the requirements of federal law, including without being limited to, regulations and

other requirements of the Securities and Exchange Commission and the Municipal Securities

Rulemaking Board, imposed directly on the town or on the purchaser or underwriters of such bonds

and notes.

SECTION 7. All bonds or notes issued under this act and the debts evidenced thereby shall

be obligatory on the town in the same manner and to the same extent as other debts lawfully

contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at

any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity.

The town shall annually appropriate a sum sufficient to pay the principal and interest coming due

within the year on bonds and notes issued hereunder to the extent that monies therefor are not

otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax

levy. In order to provide such sum in each year and notwithstanding any provision of law to the

contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without

limitation as to rate or amount.

SECTION 8. Any bonds or notes issued under the provisions of this act, if properly

executed by officers of the town in office on the date of execution, shall be valid and binding

according to their terms notwithstanding that before the delivery thereof and payment therefor any

or all of such officers shall for any reason have ceased to hold office.

SECTION 9. The town, acting by resolution of its town council, is authorized to apply for,

contract for and expend any federal or state advances or other grants or assistance which may be

available for the purposes of this act, and any such expenditures may be in addition to other monies

provided in this act. To the extent of any inconsistency between any law of this state and any

applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest

where applicable, whether contracted for prior to or after the effective date of this act, may be

repaid as project costs under section 2.

SECTION 10. Bonds and notes may be issued under this act without obtaining the approval

of any governmental agency or the taking of any proceedings or the happening of any conditions

except as specifically required by this act for such issue. In carrying out any project funded in whole

or in part under this act, including where applicable the condemnation of any land or interest in

land, and in the levy and collection of assessments or other charges permitted by law on account of

any such project, all action shall be taken which is necessary to meet constitutional requirements

whether or not such action is otherwise required by statute; but the validity of bonds and notes

issued hereunder shall in no way depend upon the validity or occurrence of such action. To the

extent of any inconsistency between this act and the town charter, this act shall prevail.

SECTION 11. The question of the approval of this act shall be submitted to the electors of

the town at the general election on November 5, 2024. The question shall be submitted in

substantially the following form: "Shall an act, passed at the 2024 session of the General Assembly,

entitled 'AN ACT AUTHORIZING THE TOWN OF NARRAGANSETT TO FUND

AFFORDABLE HOUSING IN THE TOWN OF NARRAGANSETT AND TO ISSUE NOT

MORE THAN $3,000,000 BONDS AND NOTES THEREFOR' be approved?" and the warning

for the election shall contain the question to be submitted. The town board of canvassers may

combine any two (2) or more voting districts for the election and when so combined shall be treated

as a voting district. If so combined, the town board of canvassers shall advertise the combination

of districts in a newspaper of general circulation in the town. From the time the election is warned

and until it is held, it shall be the duty of the town clerk to keep a copy of the act available at their

office for public inspection, but the validity of the election shall not be affected by this requirement.

SECTION 12. This section and section 11 shall take effect upon passage. The remainder

of this act shall take effect upon the approval of this act by a majority of those voting on the question

at the election prescribed by section 11.

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LC006162

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