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 | |
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Introduced By: Senators Kallman, Ruggerio, Miller, Gu, Acosta, McKenney, Mack, | |
Date Introduced: March 08, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND |
2 | GOVERNMENT" is hereby amended by adding thereto the following chapter: |
3 | CHAPTER 11.5 |
4 | AFFORDABLE HOUSING RENT PILOT PROGRAM |
5 | 42-11.5-1. Measuring affordable rent. |
6 | (a) Affordable rents shall be set in accordance with the standards found in HUD Title 24 |
7 | CFR 92.252 (HOME Rent Limits), RI-MA Metro FMR Area High Home Rent Limit (updated |
8 | annually). |
9 | (b) The effective 2023-2024 rates are as follows: |
10 | (1) One thousand one hundred seventy-one dollars ($1,171) and under for a one-bedroom |
11 | unit; |
12 | (2) One thousand four hundred nine dollars ($1,409) and under for a two-bedroom (2) unit; |
13 | (3) One thousand six hundred ninety-seven dollars ($1,697) and under for a three-bedroom |
14 | (3) unit; |
15 | (4) One thousand eight hundred seventy-three dollars ($1,873) and under for a four- |
16 | bedroom (4) unit; and |
17 | (5) Two thousand forty-eight dollars ($2,048) and under for a five-bedroom (5) unit. |
18 | 42-11.5-2. Tenant eligibility. |
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1 | (a) To ensure that households most susceptible of being housing cost burdened are |
2 | benefitting from this program, a landlord’s tenants shall meet the following requirements: |
3 | (1) Income-restricted to households earning eighty percent (80%) or below of the Statewide |
4 | Area Median Income (AMI) and/or a Housing Choice Voucher Program Recipient; |
5 | (2) Shall be living in a legal rental unit with a verifiable residential address (e.g., cannot be |
6 | a makeshift garage or storage shed); and |
7 | (3) Cannot be a relative of the landlord. |
8 | 42-11.5-3. Eligibility standards and responsibilities of the landlord. |
9 | In order to be eligible for the program, the landlord would be required to meet the following |
10 | standards: |
11 | (1) Live in the same residential building where they are renting out units to their tenants |
12 | (owner-occupied); |
13 | (2) If program funds are still available after one hundred eighty (180) days of the first |
14 | accepted application, the department of housing would be authorized to begin accepting |
15 | applications from property owners who own six (6) residential units or less (without the |
16 | requirement that their units be owner-occupied); |
17 | (3) Follow all existing housing and tenant laws, not limited to code enforcement; |
18 | (4) Agree to abide by "just cause" eviction policies. (In other words, if they want to evict a |
19 | tenant while being a part of the program, it shall be for a just cause such as non-payment and/or |
20 | intentional property damage); and |
21 | (5) If a tenant is evicted for just cause during enrollment in the program, the division of |
22 | taxation would still be able to provide a prorated rebate to the landlord. |
23 | 42-11.5-4. Tax rebate structure. |
24 | A landlord who enters an eighteen (18) month lease agreement with an eligible tenant on |
25 | or after January 1, 2025, under the affordable rent program under this chapter, shall be eligible for |
26 | the following rebates after the lease has concluded: |
27 | (1) Affordable one-bedroom unit: four thousand eight hundred dollars ($4,800) (a rebate |
28 | installation of one thousand six hundred dollars ($1,600) every one hundred eighty (180) days); |
29 | (2) Affordable two-bedroom (2) unit: six thousand dollars ($6,000) (a rebate installation of |
30 | two thousand dollars ($2,000) every one hundred eighty (180) days); |
31 | (3) Affordable three-bedroom (3) unit and plus: seven thousand five hundred dollars |
32 | ($7,500) (a rebate installation of two thousand five hundred dollars ($2,500) every one hundred |
33 | eighty (180) days). |
34 | 42-11.5-5. Governing responsibility. |
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1 | (a) The state department of housing shall be the managing entity responsible for the design |
2 | and oversight of this program, including the acceptance of applications into the program and |
3 | monitoring of projected exhaustion. The department shall be responsible for promulgating the rules |
4 | and regulations, under chapter 35 of title 42, related to: the application process that a qualifying |
5 | landlord and tenant would have to complete in order to be approved for the program, including, but |
6 | not limited to: |
7 | (1) Verifying property ownership; |
8 | (2) Proof of lease agreement; |
9 | (3) Verifiable income from the tenant; and |
10 | (4) Identity verification, and any additional documentation deemed necessary by the |
11 | department. |
12 | (b) The department is authorized to use existing operational funds to contract with an |
13 | outside vendor and monitoring agent(s) to implement the program. |
14 | (c) The department would be authorized to stop receiving and reviewing applications after |
15 | four hundred (400) applicants have been successfully accepted into the program. |
16 | (d) The department would be required to gather utilization data and trends around the pilot |
17 | program and report back to the governor, speaker of the house, and senate president by January 10, |
18 | 2026. |
19 | 42-11.5-6. Tax rebates. |
20 | (a) The division of taxation shall be responsible for the issuance of a tax rebate after being |
21 | authorized by the department of housing. Following an approved application, the applicant shall |
22 | receive a rebate installation from the division every one hundred eighty (180) days until the lease |
23 | is finalized. |
24 | (b) If program funds are still available after one hundred eighty (180) days of the first |
25 | accepted application, the department of housing shall be authorized to begin accepting applications |
26 | from property owners who own six (6) residential units or less and without the requirement that |
27 | their units be owner-occupied. |
28 | 42-11.5. Funding for pilot program. |
29 | To measure the impact and participation of this pilot program, the general assembly shall |
30 | appropriate the sum of three million dollars ($3,000,000) million in the fiscal year 2024-2025 state |
31 | budget for the administration of the program and the distribution of rebates. |
32 | 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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1 | This act would establish and fund an affordable housing pilot program at reduced rents to |
2 | be administered by the state department of housing with an appropriation of three million dollars |
3 | ($3,000,000) for fiscal year 2024-2025. |
4 | This act would take effect upon passage. |
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