It is enacted by the General Assembly as follows:

SECTION 1. Section 35-3-22 of the General Laws in Chapter 35-3 entitled, "State Budget" is hereby amended to read as follows:

{ADD 35-3-22. Affordable housing -- Rental subsidy. -- ADD} (a) There is hereby created within the general fund an affordable housing rental subsidy account which shall be administered by the state controller and which shall be used solely for the purpose of providing sums as may be required to fund the affordable housing rental subsidy in accordance with chapter 11.2 of title 42.

(b)(1) Commencing in fiscal year {DEL 1989-1990 DEL} {ADD 1997-1998 ADD} and each year thereafter, at the end of each fiscal year following the completion of the post audit of the financial transactions of the state by the state auditor general but prior to the issuance of his or her final audit report as set forth in section 22-13-4, the state controller shall transfer to the affordable housing rental subsidy account twenty percent (20%) of the amount payable into the general revenue fund pursuant to section 42-61-15 for each fiscal year. {DEL Provided, however, that for the fiscal year ending June 30, 1990, the amount so transferred shall not exceed six hundred thousand dollars ($600,000), and for the fiscal year ending June 30, 1991, no transfer shall be made. DEL}

(2) In carrying out the provisions of subsection (b) of this section, the state controller shall initially, at fiscal year opening, transfer the amount identified as that fiscal year's projected estimate; the transfer shall be adjusted at the end of the fiscal year in order to conform to the requirements of subsection (b).

{ADD (c) Notwithstanding any provision of the general laws to the contrary, for the period beginning July 1, 1994 and ending June 30,1997, the Rhode Island Housing and Mortgage Finance Corporation shall annually allocate funds sufficient to carry out the provisions of chapter 42-11.2 of the general laws. ADD}

SECTION 2. The act shall take effect upon passage and shall be retroactive to July 1, 1992.