2024 -- S 2752

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LC005276

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- AFFORDABLE HOUSING

RENT PILOT PROGRAM

     

     Introduced By: Senators Kallman, Ruggerio, Miller, Gu, Acosta, McKenney, Mack,
Quezada, and Burke

     Date Introduced: March 08, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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

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CHAPTER 11.5

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AFFORDABLE HOUSING RENT PILOT PROGRAM

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     42-11.5-1. Measuring affordable rent.

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     (a) Affordable rents shall be set in accordance with the standards found in HUD Title 24

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CFR 92.252 (HOME Rent Limits), RI-MA Metro FMR Area High Home Rent Limit (updated

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annually).

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     (b) The effective 2023-2024 rates are as follows:

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     (1) One thousand one hundred seventy-one dollars ($1,171) and under for a one-bedroom

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unit;

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     (2) One thousand four hundred nine dollars ($1,409) and under for a two-bedroom (2) unit;

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     (3) One thousand six hundred ninety-seven dollars ($1,697) and under for a three-bedroom

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(3) unit;

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     (4) One thousand eight hundred seventy-three dollars ($1,873) and under for a four-

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bedroom (4) unit; and

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     (5) Two thousand forty-eight dollars ($2,048) and under for a five-bedroom (5) unit.

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     42-11.5-2. Tenant eligibility.

 

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     (a) To ensure that households most susceptible of being housing cost burdened are

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benefitting from this program, a landlord’s tenants shall meet the following requirements:

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     (1) Income-restricted to households earning eighty percent (80%) or below of the Statewide

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Area Median Income (AMI) and/or a Housing Choice Voucher Program Recipient;

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     (2) Shall be living in a legal rental unit with a verifiable residential address (e.g., cannot be

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a makeshift garage or storage shed); and

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     (3) Cannot be a relative of the landlord.

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     42-11.5-3. Eligibility standards and responsibilities of the landlord.

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     In order to be eligible for the program, the landlord would be required to meet the following

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standards:

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     (1) Live in the same residential building where they are renting out units to their tenants

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(owner-occupied);

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     (2) If program funds are still available after one hundred eighty (180) days of the first

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accepted application, the department of housing would be authorized to begin accepting

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applications from property owners who own six (6) residential units or less (without the

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requirement that their units be owner-occupied);

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     (3) Follow all existing housing and tenant laws, not limited to code enforcement;

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     (4) Agree to abide by "just cause" eviction policies. (In other words, if they want to evict a

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tenant while being a part of the program, it shall be for a just cause such as non-payment and/or

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intentional property damage); and

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     (5) If a tenant is evicted for just cause during enrollment in the program, the division of

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taxation would still be able to provide a prorated rebate to the landlord.

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     42-11.5-4. Tax rebate structure.

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     A landlord who enters an eighteen (18) month lease agreement with an eligible tenant on

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or after January 1, 2025, under the affordable rent program under this chapter, shall be eligible for

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the following rebates after the lease has concluded:

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     (1) Affordable one-bedroom unit: four thousand eight hundred dollars ($4,800) (a rebate

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installation of one thousand six hundred dollars ($1,600) every one hundred eighty (180) days);

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     (2) Affordable two-bedroom (2) unit: six thousand dollars ($6,000) (a rebate installation of

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two thousand dollars ($2,000) every one hundred eighty (180) days);

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     (3) Affordable three-bedroom (3) unit and plus: seven thousand five hundred dollars

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($7,500) (a rebate installation of two thousand five hundred dollars ($2,500) every one hundred

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eighty (180) days).

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     42-11.5-5. Governing responsibility.

 

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     (a) The state department of housing shall be the managing entity responsible for the design

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and oversight of this program, including the acceptance of applications into the program and

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monitoring of projected exhaustion. The department shall be responsible for promulgating the rules

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and regulations, under chapter 35 of title 42, related to: the application process that a qualifying

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landlord and tenant would have to complete in order to be approved for the program, including, but

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not limited to:

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     (1) Verifying property ownership;

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     (2) Proof of lease agreement;

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     (3) Verifiable income from the tenant; and

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     (4) Identity verification, and any additional documentation deemed necessary by the

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department.

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     (b) The department is authorized to use existing operational funds to contract with an

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outside vendor and monitoring agent(s) to implement the program.

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     (c) The department would be authorized to stop receiving and reviewing applications after

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four hundred (400) applicants have been successfully accepted into the program.

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     (d) The department would be required to gather utilization data and trends around the pilot

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program and report back to the governor, speaker of the house, and senate president by January 10,

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2026.

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     42-11.5-6. Tax rebates.

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     (a) The division of taxation shall be responsible for the issuance of a tax rebate after being

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authorized by the department of housing. Following an approved application, the applicant shall

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receive a rebate installation from the division every one hundred eighty (180) days until the lease

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is finalized.

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     (b) If program funds are still available after one hundred eighty (180) days of the first

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accepted application, the department of housing shall be authorized to begin accepting applications

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from property owners who own six (6) residential units or less and without the requirement that

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their units be owner-occupied.

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     42-11.5. Funding for pilot program.

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     To measure the impact and participation of this pilot program, the general assembly shall

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appropriate the sum of three million dollars ($3,000,000) million in the fiscal year 2024-2025 state

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budget for the administration of the program and the distribution of rebates.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- AFFORDABLE HOUSING

RENT PILOT PROGRAM

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     This act would establish and fund an affordable housing pilot program at reduced rents to

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be administered by the state department of housing with an appropriation of three million dollars

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($3,000,000) for fiscal year 2024-2025.

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     This act would take effect upon passage.

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