law25275

Chapter 275

2025 -- H 5955 SUBSTITUTE A
Enacted 06/27/2025

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- HOUSING LAND BANK PROGRAM

Introduced By: Representatives Speakman, Giraldo, Voas, and Alzate

Date Introduced: February 28, 2025

It is enacted by the General Assembly as follows:

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

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

CHAPTER 55.2

HOUSING LAND BANK PROGRAM

42-55.2-1. Establishment of housing land bank program.

(a) As used herein:

(1) "Housing land bank" or "land bank" means the housing land bank program operated by

the Rhode Island housing and mortgage finance corporation ("corporation"), and established

pursuant to this chapter.

(b) There is hereby established a program to be operated by the corporation called the

"housing land bank" in furtherance of the goal to create affordable housing in the State of Rhode

Island. The housing land bank is intended for the purpose of buying, receiving, and holding real

property for the development of housing. Real estate assets held by the land bank shall be donated

or sold for housing to be developed and owned by an affordable housing developer including a

public housing authority or an organization that qualifies under section 501(c)(3) of the Internal

Revenue Code (the "code"), in accordance with guidelines developed by the corporation in

collaboration with the department of housing.

land bank as affordable housing, the corporation reserves the right to sell the property without

restriction to the buyer or on the use of the property so long as any net proceeds from the sale of

the property are reinvested in the land bank.

42-55.2-2. Designation of subsidiary organization.

The corporation shall hold title to real estate assets held for disposal according to the

purposes described in § 42-55.2-1. Title to such real estate shall be held in the name of a subsidiary

of the corporation designated for such purposes.

42-55.2-3. Acquisition of property and deposit into the land bank.

(a) The corporation may acquire real property or interests in real property by gift, transfer,

exchange, foreclosure, purchase, or otherwise on terms and conditions and in a manner the

corporation considers proper and deposit such property into the land bank.

(b) The corporation may use its own funds or funds that it controls to acquire real property

by purchase contracts, lease purchase agreements, installment sales contracts, and/or land contracts,

and may accept donations and transfers from municipalities, other quasi-public entities, nonprofit

entities, or the state upon such terms and conditions as agreed to by the corporation and the

respective municipality, entity, or state. Nothing herein shall prevent the corporation from

accepting donations from private entities.

the land bank real property and interests in real property of the municipality on such terms and

conditions and according to such procedures as determined jointly by the municipality in which the

property is located and the corporation.

42-55.2-4. Public inspection of records.

(a) The corporation shall maintain and make available for public review and inspection a

complete inventory of all property received by the corporation for deposit into the land bank. Such

inventory shall include:

(1) The location of the parcel; the purchase price, if any, for each parcel received;

(2) The identity of the transferor; and

(3) Any conditions or restrictions applicable to the property.

(b) All parcels received by the corporation and deposited into the land bank shall be listed

on the received inventory established pursuant to subsection (a) of this section within ten (10)

business days of the acquisition and shall remain in such inventory for at least five (5) business

days prior to disposition. Such inventory shall be listed on a website for the corporation accessible

to the public, including at least the street where the property is located, the size and type of any

structure upon it, within twenty (20) business days of acquisition into the land bank.

42-55.2-5. Corporation's authority to reject proposed transfers of property.

The corporation is hereby allowed to reject any proposed transfer of any real estate asset

in control of the land bank for any reason including, but not limited to, polluted, contaminated, or

problematic parcels which would, in the judgment of the corporation, create a harm to the finances,

operations or interests for the land bank, the corporation or the state.

42-55.2-6. Property in the land bank exempt from legal process.

(a) Any land deposited into the land bank inventory shall not be subject to attachment,

execution, or any judicial or administrative process during the period it is held by the corporation,

unless that parcel or asset is pledged as security for any loan agreement related to that parcel in

which case any available legal process shall be available against that parcel, but no liens, fines,

penalties, assessments, or other charges shall be made against the land bank, the corporation, or the

state for any reason during the period the property is held in the land bank.

(b) In the event there is a division in the freehold interest where only a portion of the rights

related to the property is located in the land bank, the remainder may be made subject to legal

process as long as such process does not act to divest the land bank of any of its attributes of

ownership or ability to develop the property.

held by the land bank or any other conflict in ownership which may arise under this section, the

corporation may petition the superior court for partition in which after the required notice and

service of process is completed upon confirmatory motion, the land bank shall be awarded and

receive the whole fee simple interest by way of an interim order or a final judgment. An interim

order or a final judgment constitutes a recordable order which shall be considered binding in the

chain of title and any of the remainder portion claimed by another owner or creditor shall be subject

to owelty under the law or in equity based on the value of the interest transferred to the land bank.

Neither the corporation nor any land subject to such a partition action shall be restrained nor

enjoined and no equitable order shall issue to prevent the development of the property by the

corporation or its applicant or assignee.

42-55.2-7. Required review of surplus land by municipal entities.

(a) Required property review. Each municipality shall conduct a review of real estate assets

owned by or under the control of the municipality and determine which real estate assets are not

under current use or planned use as of July 1, 2027. Every municipality shall provide that inventory

to the corporation and the department of housing by October 1, 2027. Every year thereafter each

municipality shall provide to the corporation and the department of housing by October 1 an

inventory of any additional municipal real estate assets which are not under current or planned use

as of July 1 of that year.

(b) The department of housing and the corporation will work with municipalities to

determine if properties reported under subsection (a) of this section are appropriate for

redevelopment as affordable housing, and if so, how to facilitate that process.

SECTION 2. Section 37-7-6 of the General Laws in Chapter 37-7 entitled "Management

and Disposal of Property" is hereby amended to read as follows:

37-7-6. Transfer of land between departments and agencies.

The governor, upon the request in writing of any interested general officer or the head of

any department, board, bureau, commission, or agency of the state government, may execute a

certificate transferring custody, control, and supervision over any land, and all buildings and

improvements thereon and other real property, title to which is vested in the state of Rhode Island,

or the title to which will be vested in the state upon completion of any condemnation or other

proceeding then pending, from the department, board, bureau, commission, or agency exercising

custody, control, or supervision to another department, board, bureau, commission, or agency of

the state government. Such transfer may also be made to the Rhode Island housing and mortgage

finance corporation (as established in chapter 55 of title 42) or any of its subsidiaries for the

purposes of developing or redeveloping the property as affordable or mixed-income housing. The

corporation shall offer reasonable compensation, as informed by an appraisal or other independent

valuation, for the transfer of state-owned group homes as defined in § 40.1-24-1(6).

SECTION 3. This act shall take effect upon passage.

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LC002033/SUB A/3

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