The bill introduces a new chapter, Chapter 64.35, within Title 42 of the General Laws, establishing the "Department of Housing Land Bank Program" in Rhode Island. This program, managed by the Department of Housing, aims to create affordable housing by acquiring, holding, and managing real property. The Department can obtain property through purchase, donation, or transfer, and municipalities are authorized to transfer property to the land bank. The bill sets up an account for real estate assets, details acquisition conditions, and ensures public access to land bank records. It allows the Department to reject problematic parcels and exempts land bank property from legal processes, except when used as security for funding improvements. Additionally, the bill permits the Department to petition for partition in cases of divided ownership to secure full ownership for the land bank.

The bill also mandates a review of surplus real estate assets by state, municipal, and quasi-public entities by June 30, 2025, and requires annual updates and long-term plans for these assets. If the Department of Housing identifies a parcel suitable for residential development that is not planned for use within ten years, it can negotiate its transfer from the controlling body. In case of valuation disputes, binding arbitration will determine the purchase price. The bill exempts certain state agencies and entities from the sale procedure. New legal language inserted into the law outlines the types of real estate assets the land bank will control and the process for transferring ownership of real estate assets, including a right of first refusal for the Department of Housing. The act will be effective upon passage.