The bill amends Section 44-5-13.11 of the General Laws regarding the assessment and taxation of qualifying low-income housing. It establishes that residential properties issued an occupancy permit after January 1, 1995, and encumbered by a covenant for low-income housing, will be taxed at a rate of 8% of the previous year's gross scheduled rental income if at least 40% of the units are affordable to households at or below 80% of the statewide area median income, or if at least 30% of the units are affordable to households at or below 60% of the median income. Additionally, the bill introduces a tax stabilization schedule for properties converted from non-residential to residential use, starting at 8% for the first 15 years and gradually increasing to 12% over the next 15 years.

The bill also clarifies that the term "residential property" excludes any portion of a mixed-use building not used as a residence, requiring property owners to provide evidence for appropriate taxation. It ensures that properties approved for tax treatment under this section can continue to receive the established tax rate unless rejected by the property owner, and this treatment is transferable to new owners if conditions are met. Furthermore, it prohibits cities or towns from taxing qualifying properties at rates higher than those specified in the bill, emphasizing the state-wide concern for creating low-income housing and new housing through adaptive reuse. The act will take effect upon passage.