The proposed bill establishes a "Housing Land Bank Program" under the Rhode Island housing and mortgage finance corporation, aimed at creating affordable housing in the state. The program will allow the corporation to acquire, hold, and manage real property for the purpose of developing affordable housing. Properties can be obtained through various means, including donations and transfers from municipalities, and if no eligible entity is found to redevelop a property, the corporation can sell it, provided that the proceeds are reinvested into the land bank.

The bill mandates public transparency by requiring the corporation to maintain a complete inventory of all properties in the land bank, which will be accessible for public review. This inventory must include the location, purchase price, identity of the transferor, and any applicable conditions or restrictions. All parcels received must be listed within ten business days of acquisition and remain in the inventory for at least five business days prior to disposition.

Additionally, the bill allows the corporation to reject any proposed transfer of real estate assets that may be polluted, contaminated, or problematic. It also exempts properties in the land bank from legal processes during the period they are held by the corporation, unless pledged as security for a loan.

The legislation requires each municipality to conduct a review of real estate assets owned or controlled by them to identify those not under current or planned use, providing this inventory to the corporation and the department of housing by October 1, 2027, and annually thereafter. The department of housing and the corporation will work with municipalities to determine if reported properties are suitable for redevelopment as affordable housing.

Furthermore, the bill amends existing laws to facilitate the transfer of state-owned land to the housing land bank for redevelopment as affordable or mixed-income housing, requiring the corporation to offer reasonable compensation for the transfer of state-owned group homes.

This act is designed to streamline the process of identifying and utilizing surplus municipal properties for affordable housing development and is set to take effect upon passage.

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