2013 -- H 5509

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LC01151

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO PROPERTY - THE HOLDERS OF LOW AND MODERATE INCOME

HOUSING RESTRICTIONS ACT

     Introduced By: Representatives Marshall, O'Brien, Malik, Costantino, and Almeida

     Date Introduced: February 14, 2013

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 34-39.1-2, 34-39.1-3 and 34-39.1-6 of the General Laws in

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Chapter 34-39.1 entitled "The Holders of Low and Moderate Income Housing Restrictions Act"

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are hereby amended to read as follows:

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     34-39.1-2. Legislative purpose. -- The general assembly recognizes and declares that

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there exists in the state of Rhode Island a serious shortage of decent, safe and sanitary housing

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units available and affordable to persons and families of low and moderate income as well as

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senior citizens. The inadequacy in the supply of decent, safe, and sanitary affordable housing

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endangers the public health and jeopardizes the public safety, general welfare, and good of the

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entire state. To obtain the benefits of restrictions which seek to preserve and maintain affordable

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housing, the general assembly does hereby grant special status to the restrictions so a restriction

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holder may enforce the restrictions without uncertainty as to the legal effect and enforceability of

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the restrictions.

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     34-39.1-3. Definitions. -- For purposes of this chapter:

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      (1) "Housing restriction" means any obligation or requirement to maintain real estate

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affordable for rental to or purchase by low and moderate income citizens as well as senior citizens

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of the state or any limitation on the future use or transfer of the real estate, whether stated in the

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form of a charge, encumbrance, financing instrument, easement, covenant, or condition in any

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deed, agreement, or other instrument executed by or on behalf of the owner of the real estate.

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      (2) "Restriction holder" means any nonprofit corporation, partnership, association,

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cooperative, or trust established for the primary purpose of owning, operating, leasing,

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preserving, or maintaining housing affordable to persons and families of low and moderate

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income as well as senior citizens and entities that provide financing, land, or other benefits related

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to the development and preservation of affordable housing including, but not limited to, state

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agencies, municipalities, foundations, Rhode Island housing and mortgage finance corporation,

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and public housing authorities.

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     34-39.1-6. Invalidity of certain restrictive covenants. -- Since decent, safe and sanitary

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housing units available and affordable to persons and families of low and moderate income as

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well as senior citizens must by their nature be situated in residential areas, including exclusively

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residential areas and also mixed use areas, any restrictive covenant or other private legal

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impediment which directly or indirectly prevents or restricts the establishment of housing subject

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to a housing restriction as defined in this chapter, excluding conservation restrictions and

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preservation restrictions as defined in section 34-39-2, shall be void and unenforceable; provided,

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however, that the city or town council of the municipality where said restrictive covenant or other

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legal impediment applies may override the provisions of this section by a majority vote of the

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members of said council as designated by law.

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     SECTION 2. This act shall take effect upon passage.

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LC01151

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PROPERTY - THE HOLDERS OF LOW AND MODERATE INCOME

HOUSING RESTRICTIONS ACT

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     This act would expand the provisions of the statute to include senior citizen housing and

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provide a mechanism for the local city or town council to uphold restrictive covenants preventing

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the construction of low and moderate income as well as senior citizen housing.

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     This act would take effect upon passage.

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LC01151

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