The bill grants the town of Narragansett the authority to issue bonds up to $3,000,000 for the purpose of funding affordable housing projects and related costs. These bonds, which can be either serial or term, must begin principal repayment within five years and be fully repaid within thirty years of issuance. The town treasurer and the president of the town council are required to sign the bonds, and the town council will decide on the specifics of the bond sale, including denominations, maturities, interest rates, and other terms. The proceeds from the bonds, excluding any premiums and accrued interest, are to be used exclusively for affordable housing initiatives, repayment of temporary notes, or repayment of advances.

Additionally, the bill permits the town council to issue temporary notes in anticipation of the bonds or federal/state aid, with a maximum maturity of five years. The town treasurer is authorized to invest town funds for the specified purposes until the issuance of bonds or notes, with the understanding that these funds will be reimbursed from the proceeds of the bonds or notes. The treasurer is also responsible for ensuring compliance with federal tax laws and regulations, including the payment of potential rebates to the federal government and adherence to SEC and Municipal Securities Rulemaking Board requirements. The act will take effect immediately upon passage for sections 11 and 12, while the rest will become effective after approval by a majority vote in the general election on November 5, 2024. The bill also clarifies that the town council can apply for and expend federal or state grants for the purposes of the act without the need for approval from any governmental agency, except as required by the act itself.