The bill amends Section 44-3-9 of the General Laws in Chapter 44-3 entitled "Property Subject to Taxation" to include provisions for the exemption or stabilization of taxes on property used for manufacturing, commercial, or residential purposes. The amendment allows city or town councils, after public hearings, to exempt from payment or determine a stabilized amount of taxes for properties that meet certain criteria, such as undergoing environmental remediation, historical preservation, or being used for affordable housing, manufacturing, commercial, or residential purposes. The exemption or stabilization can be granted for up to 20 years, with the possibility of a 10-year extension for specific properties in Providence. The bill specifies that properties benefiting from tax exemption or stabilization must still pay taxes for city or town indebtedness and that the exemption or stabilization cannot be used for manufacturing or commercial concerns relocating within the state of Rhode Island. Renewable energy resources are also eligible for tax stabilization agreements.

The bill introduces new requirements for residential development projects seeking tax exemption or stabilization. Projects with 5 to 9 housing units must include a minimum of 18% affordable housing units or contribute an equivalent amount to a city or town account for affordable housing. Projects with 10 or more units must include at least 18% affordable housing units. The affordable housing units must be comparable in size and quality to the market-rate units in the development. If the calculation results in a remainder, the city or town may require the developer to contribute an amount equivalent to the remainder for affordable housing. The bill defines affordable housing as housing that does not exceed 30% of the gross annual income of a household earning up to 80% of the Providence-Fall River, RI-MA metropolitan area median income, as defined by HUD. The act would take effect upon passage and aims to implement affordable housing requirements for developers of tax stabilization applications for developments of five or more housing units.

Statutes affected:
90: 44-3-9