The bill grants the town of Narragansett the authority to issue bonds up to $3,000,000 to finance affordable housing projects. These bonds, which can be serial or term bonds, must have their first principal installment due within five years and the last within thirty years from the issuance date. The town treasurer and the president of the town council are responsible for signing the bonds, and the town council will determine the specifics of the bond sale, including denominations, maturities, interest rates, and other terms. The proceeds from the bond sales are designated for affordable housing efforts, such as contributing to the town's affordable housing trust, implementing housing plans, or other related purposes as decided by the town council. The bill also permits the issuance of temporary notes in anticipation of the bonds or federal/state aid and allows the town treasurer to use town funds for these purposes, with the expectation of repayment from bond proceeds or other funds.
The legislation mandates that the town of Narragansett must annually allocate funds to repay the principal and interest of the bonds and notes, and any shortfall in appropriation will be added to the town's annual tax levy. The bonds and notes are considered lawful debts of the town but are excluded from the town's debt limit for borrowing capacity. The bill ensures the bonds and notes remain valid despite any changes in town officers and allows the town to apply for and use federal or state grants for the act's objectives. The act's approval will be decided by the town's electorate at the general election on November 5, 2024, with Sections 11 and 12 effective upon passage and the rest contingent on voter approval. The bill does not include any specific insertions or deletions of existing legal language.