The bill amends Sections 34-18.2-2 and 34-18.2-3 of the General Laws in Chapter 34-18.2, titled "Leased Land Dwellings," by introducing new definitions and provisions aimed at enhancing the rights of homeowners' associations. Notably, it defines "Corporation" as the Rhode Island housing and mortgage finance corporation (RIHousing) and clarifies terms such as "Homeowner," "Land owner," "Leased land," and "Residential dwelling." A significant addition is the establishment of a right of first refusal for incorporated homeowners' associations representing at least 51% of homeowners on the land, requiring landowners to notify these associations of any bona fide offers to sell or lease the land. The homeowners' association can then purchase or lease the land under the same terms as the offer, provided they act within 180 days of notification. The bill also outlines exceptions to this right, including government takings and forced sales.

Furthermore, the bill mandates RIHousing to collaborate with relevant entities to assist homeowners' associations in exercising their right of first refusal and to identify barriers to property transfers. It imposes additional responsibilities on landowners, such as filing an affidavit of compliance within seven days of a sale or lease and prohibiting rental increases upon receiving a bona fide purchase offer. The right of first refusal is extended to former association members for one year after tenancy termination, and a covenant of good faith and fair dealing is established for all tenancies involving residential dwellings on leased land. The act will take effect upon passage, reflecting a comprehensive effort to protect the interests of homeowners living on leased land.