2025 -- H 5955

========

LC002033

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

____________

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- DEPARTMENT OF HOUSING

LAND BANK PROGRAM

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

     Date Introduced: February 28, 2025

     Referred To: House Municipal Government & Housing

     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

DEPARTMENT OF HOUSING LAND BANK PROGRAM

     42-55.2-1. Establishment of program.

     There is hereby established a program to be operated by the department of housing called

the "housing land bank".

     42-55.2-2. Establishment of account.

     The department shall establish an account into which title to real estate assets shall be

deposited and held for use for the purpose of developing residential housing.

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

     (a) The department may acquire real property or interests in real property by gift, devise,

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

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

     (b) The department may use its own funds or funds in the housing development fund

created pursuant to this title to acquire real property by purchase contracts, lease purchase

agreements, installment sales contracts, and/or land contracts, and may accept transfers from

municipalities, other quasi-public entities, nonprofit entities or the state upon such terms and

conditions as agreed to by the department and the municipality, entity or state.

     (c) Notwithstanding any other law to the contrary, any municipality may freely transfer to

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 and the

department.

     (d) The acquisition of real property by the department pursuant to this section, from entities

other than political subdivisions, shall be limited to real property that is tax delinquent, tax

foreclosed, subject to municipal receivership, vacant or abandoned, or unimproved land; provided,

however, that the land bank shall have authority to enter into agreements to purchase other real

property consistent with a development plan approved by the director of the department of housing.

     42-55.2-4. Public inspection of records.

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

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

inventory shall include: the location of the parcel; the purchase price, if any, for each parcel

received; the current value assigned to the property for purposes of real property taxation; the

amount, if any, owed to the locality for real property taxation or as a payment in lieu of taxes; the

identity of the transferor; and any conditions or restrictions applicable to the property.

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

on the received inventory established pursuant to subsection (a) of this section within one week of

acquisition and shall remain in such inventory for one week prior to disposition. Such inventory

shall be listed on a website for the department accessible to the public.

     42-55.2-5. Departmental authority to reject proposed transfers of property.

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

for any reason including, but not limited to, polluted, contaminated or problematic parcels which

would, in the judgment of the department, create a harm to the finances, operations or interests for

the land bank, the department or the state.

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

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

any judicial or administrative process during the period it is held by the department, unless that

parcel or asset is pledged as security for any loan agreement made for funding improvements related

to that parcel in which case such process shall be available against that asset only, and no liens,

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

department or the state for any reason during the period it 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

LC002033 - Page 2 of 5

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.

     (c) In the event of a divided ownership where a portion of the fee or property interest is

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

department 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 department 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

department or its applicant or assignee.

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

     (a) Conduct of required review. All state and municipal public bodies and quasi-public

entities shall conduct a review of real estate assets owned by or under the control of the body or

quasi-public entity and determine which real estate assets are not under current use or planned use

by June 30, 2026, and annually thereafter.

     (b) Real estate asset planning. Each state and municipal public body and quasi-public entity

shall create a long-term plan for those real estate assets not in current use. Such a plan shall provide

an estimated date when each real estate asset will be employed for use by the agency, what the

proposed use will be, and if known, the estimated costs to develop the land for the proposed use.

     (c) A list of all real estate assets which are not in use shall be submitted to the department

along with a list of those parcels for which there are plans to put said parcel to use within ten (10)

years and evidence of what that use will be.

     (d) The department will evaluate each parcel submitted to the department, along with the

proposed use for each parcel so denominated by each public body, for the appropriateness for

development into residential housing units. A copy of the list shall also be provided to the state

properties committee.

     (e) Notice to the department. If the department determines that a particular parcel listed on

any list required in subsections (b) and (c) of this section is determined to be appropriate for

residential real estate development, the department shall provide notice to the state or municipal

public body or quasi-public agency that is in control of or owns the parcel.

LC002033 - Page 3 of 5

     (f) Donation or sale prior to disposition. Prior to any disposition of any real estate asset by

any state or municipal public body or quasi-public agency through sale, long-term lease of more

than five (5) years, surplus of property, auction, donation or other method, notice shall be provided

to the department along with the opportunity to timely evaluate the property and decide whether to

exercise an option to purchase or decline to purchase the parcel which shall not be less than forty-

five (45) days. Notice of the proposed auction date, sale date or date of the disposition shall be

provided to the department. Unless a public auction or sale is required pursuant to other law or

judicial order, the department shall have the right of first refusal for purchase of the real estate asset

by the land bank at:

     (1) The advertised price, or, if none, then;

     (2) At the price offered by an alternative buyer, or, if none, then;

     (3) At the lowest price acceptable to the selling entity if acceptable to the department. The

department shall inform the selling agency of its decision to exercise its right of first refusal prior

to the auction date, sale date or disposition date contained in the original notice.

     SECTION 2. This act shall take effect upon passage.

========

LC002033

========

LC002033 - Page 4 of 5

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- DEPARTMENT OF HOUSING

LAND BANK PROGRAM

***

     This act would create the department of housing land bank program to allow for the deposit

of title to real estate assets for the purpose of developing residential housing.

     This act would take effect upon passage.

========

LC002033

========

LC002033 - Page 5 of 5