The bill establishes a new chapter, CHAPTER 55.2, within Title 42 of the General Laws, creating a "Housing Land Bank Program" operated by the Rhode Island Housing and Mortgage Finance Corporation. This program aims to facilitate the creation of affordable housing by allowing the corporation to buy, receive, and hold real property for development. The housing land bank is intended for the purpose of buying, receiving, and holding real property for the development of housing, with real estate assets held by the land bank to be donated or sold to affordable housing developers, including public housing authorities or organizations qualifying under section 501(c)(3) of the Internal Revenue Code, in accordance with guidelines developed by the corporation in collaboration with the Department of Housing.

The corporation may acquire real property or interests in real property through various means, including gift, transfer, exchange, foreclosure, and purchase, and may accept donations from municipalities, quasi-public entities, nonprofit entities, or the state. Municipalities may freely transfer real property to the land bank under terms determined jointly with the corporation. The corporation is required to maintain a public inventory of all properties received for deposit into the land bank, including details such as location, purchase price, and transferor identity.

If no eligible entity is identified to redevelop a property as affordable housing, the corporation reserves the right to sell the property without restrictions, provided that any net proceeds from the sale are reinvested in the land bank. The corporation is also authorized to reject proposed transfers of real estate assets for various reasons, including concerns about pollution or contamination.

Additionally, the bill amends Section 37-7-6 to allow the transfer of state-owned land to the Rhode Island Housing and Mortgage Finance Corporation or its subsidiaries for the purpose of developing affordable or mixed-income housing, with the corporation required to offer reasonable compensation for the transfer of state-owned group homes. The act is set to take effect upon passage.

Statutes affected:
122  SUB A as amended: 37-7-6