The bill proposes the establishment of a Reduced Housing Rent Pilot Program under a new Chapter 11.5 in Title 42 of the General Laws, titled "STATE AFFAIRS AND GOVERNMENT." This program sets reduced rent rates in Rhode Island in accordance with HUD Title 24 CFR part 92.252 for the Rhode Island-Massachusetts metro area, with specific rates for one-bedroom to five-bedroom units. Tenant eligibility is limited to households earning 80% or below of the statewide area median income (AMI) or Housing Choice Voucher Program recipients, living in a legal rental unit with a verifiable address, and not related to the landlord. Landlords must live in the same building, follow existing laws, abide by "just cause" eviction policies, and may receive a prorated rebate if a tenant is evicted for just cause.

The bill outlines a tax rebate structure for property owners who enter an 18-month lease with eligible tenants, with specific rebate amounts for different unit sizes, distributed every 180 days. The state department of housing is tasked with managing the program, including application processing and monitoring, with the authority to contract outside vendors for implementation. The department may stop accepting applications after 400 applicants or open applications to smaller property owners if funds remain after 180 days. The department is also required to report on the program's utilization by January 10, 2026. The division of taxation is responsible for issuing tax rebates authorized by the department of housing. An appropriation of $3,000,000 is allocated for the program's administration and rebate distribution for the fiscal year 2024-2025. The act will take effect upon passage.