2024 -- S 2868

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LC005620

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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 -- HOUSING PRODUCTION

REVOLVING FUND ACT

     Introduced By: Senators Bissaillon, Kallman, DiPalma, Cano, Quezada, Burke, and Euer

     Date Introduced: March 22, 2024

     Referred To: Senate Finance

     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 64.35

HOUSING PRODUCTION REVOLVING FUND ACT

     42-64.35-1. Short title.

     This chapter shall be known and may be cited as the "Housing Production Revolving Fund

Act."

     42-64.35-2. Establishment of the fund - Uses.

     (a) The department of housing is authorized to issue bonds in the amount of fifty million

dollars ($50,000,000) (the "housing bonds”), with a maturity date not to exceed twenty (20) years,

to create the housing production revolving fund (the "fund"), in order to further the goals set forth

in this chapter and to promote, among other purposes, the development of housing in order to make

housing more affordable.

     (b) The uses of the fund shall include, but are not limited to:

     (1) Providing debt service for the housing bonds; and

     (2) Financing real estate projects by public developers to include public housing authorities

and other public agencies.

     (c) The fund shall consist of:

     (1) Proceeds from the issuance of housing bonds in the amount of fifty million dollars

($50,000,000);

     (2) Annual appropriation from the general assembly for debt service of the housing bonds

not to exceed five hundred thousand dollars ($500,000) per year;

     (3) Repayments of principal and interest from loans made from the fund; and

     (4) Any other money made available to the fund from other sources including, but not

limited to, gifts, grants or donations.

     42-64.35-3. Development of housing.

     (a) The department of housing shall formulate a program for the development of housing

units where a portion of the housing units are set aside from housing projects to ensure affordability.

The program shall solicit applications from public developers to include public housing authorities

and other public agencies for the construction or rehabilitation and ownership of housing units. A

developer awarded assistance under this chapter shall be required at a minimum to provide:

     (1) Twenty percent (20%) of the development of housing units be affordable housing for

households earning fifty percent (50%) or less of the area median income (AMI), adjusted for

household size; and

     (2) An additional ten percent (10%) of the development of housing units be affordable

housing for households earning eighty percent (80%) or less of the area median income (AMI)

adjusted for household size.

     (b) Developers shall endeavor to use all possible methods including, but not limited to,

additional public subsidy and housing vouchers, to achieve maximal affordability on all projects.

     42-64.35-4. Rules and regulations.

     The department of housing shall be the administrator of the fund and shall promulgate rules

and regulations deemed necessary for the administration of the fund and for the implementation of

the provisions of this chapter.

     42-64.35-5. Labor standards.

     (a) For construction projects financed in whole or in part by the housing production

revolving fund in excess of ten million dollars ($10,000,000), all construction workers shall be paid

in accordance with the wages and benefits required pursuant to chapter 13 of title 37 ("labor and

payment of debt by contractors") with all contractors and subcontractors required to file certified

payrolls on a monthly basis for all work completed in the preceding month on a uniform form

prescribed by the director of labor and training. Failure to follow the requirements pursuant to

chapter 13 of title 37 shall constitute a material violation and a material breach of the agreement

with the state. The department of housing, in consultation with the director of labor and training

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and the tax administrator, shall promulgate such rules and regulations as are necessary to implement

the enforcement of this section.

     (b) The department of housing shall ensure that contracts for construction projects under

this chapter shall contain provisions requiring contractors and subcontractors to:

     (1) Utilize apprenticeship and training programs registered with and approved by the State

of Rhode Island or federal apprenticeship agencies, ensuring a specified ratio of apprentices to

skilled workers as defined by the department of labor and training or its successor agency, and

adhere to the obligations set forth by these programs;

     (2) Comply with the minority business enterprise contracting targets set out in § 37-14.1-

6, using the definitions of § 37-14.1-3;

     (3) For projects valued over twenty-five million dollars ($25,000,000), the department of

housing shall conduct an independent, objective, researched study, using reviewable criteria, to

determine whether adoption of a project labor agreement on the proposed project or projects will

help achieve the goals of chapter 2 of title 37 ("state purchases").

     42-64.35-6. Compliance with the American with Disabilities Act.

     (a) A minimum of five percent (5%) of the housing units developed under this chapter shall

be designed and built to be readily accessible and usable by individuals with disabilities in

accordance with the standards set forth by the Americans with Disabilities Act (ADA) and

applicable state laws.

     (b) The department of housing shall ensure that the application process for public

developers includes the provision for ADA-compliant housing units and shall review and approve

the accessibility features in the design plans of the housing units.

     42-64.35-7. Childcare provision.

     (a) Public developers are encouraged to incorporate on-site childcare facilities within

housing developments funded under this chapter to support the families residing in these housing

units.

     (b) The department of housing shall coordinate with the department of children, youth, and

families to develop guidelines and provide resources for the establishment and operation of on-site

childcare facilities, including compliance with state and national standards for childcare provision.

     42-64.35-8. Green building and environmental standards.

     (a) All construction projects financed in whole or in part by the housing production

revolving fund shall adhere to recognized green building and environmental standards that

holistically address climate and environmental impacts, as determined by the Rhode Island office

of energy resources or its successor agency, which may include standards established by the

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international sustainable building certification program created by the International Living Future

Institute referred to as the "Living Building Challenge", or the "Passive House Standard"

established by the International Passive House Association (IPHA).

     (b) Public developers shall, to the greatest extent possible, incorporate renewable energy

systems such as solar power, and energy-efficient technologies in the design, construction, and

operation of housing units developed under this chapter.

     (c) The department of housing shall coordinate with the Rhode Island office of energy

resources or its successor agency to develop guidelines, provide resources, and offer technical

assistance to public developers for the implementation of green building and environmental

standards in housing projects funded under this chapter.

     42-64.35-9. Local hiring.

     (a) Except where prohibited by law, public developers shall be encouraged to prioritize

hiring local workers for construction, maintenance, and operation jobs within the housing projects

funded under this chapter.

     (b) The department of housing shall coordinate with local workforce development agencies

to promote job opportunities for local residents in housing projects funded under this chapter, in

accordance with applicable laws and regulations.

     42-64.35-10. Transportation access.

     (a) Public developers are encouraged to prioritize locations with access to public

transportation or provide transportation solutions to ensure accessibility to essential services and

employment opportunities for the residents of the housing units developed under this chapter.

     (b) The department of housing shall coordinate with the department of transportation and

other relevant agencies to assess and improve transportation access to and from housing projects

funded under this chapter.

     42-64.35-11. Climate resilience.

     (a) Public developers shall incorporate climate resilience measures to protect housing

developments from extreme weather events and future climate change impacts.

     (b) The department of housing shall coordinate with relevant state agencies to develop

guidelines for climate resilience measures in housing projects funded under this chapter.

     42-64.35-12. Monitoring and evaluation.

      (a) The department of housing shall establish a mechanism for the ongoing monitoring

and evaluation of the fund’s impact, including a public reporting requirement.

     (b) Public developers receiving funding under this chapter shall provide regular reports to

the department of housing on the progress and impact of funded projects, as determined by the

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department of housing.

     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 -- HOUSING PRODUCTION

REVOLVING FUND ACT

***

     This act would authorize the department of housing to issue bonds in the amount of fifty

million dollars ($50,000,000), with a maturity date not to exceed twenty (20) years, to establish the

housing production revolving fund, to promote the development of housing and ensuring that

housing becomes more affordable. The fund would be used to provide debt service for the housing

bond and establish real estate projects by public developers to include public housing authorities

and other public agencies. A portion of the housing units developed would be set aside to ensure

affordability, by requiring that at least twenty percent (20%) is allocated as affordable housing for

households earning fifty percent (50%) or less of the area median income, adjusted for household

size, and an additional ten percent (10%) is allocated for households earning eighty percent (80%)

or less of the area median income, adjusted for household size.

     This act would take effect upon passage.

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