The proposed bill amends Chapter 42-55 of the General Laws to establish a new section, 42-55-31, creating a revolving fund specifically designed to assist first-time homebuyers and veterans in purchasing homes in Rhode Island. This fund will provide grants to eligible individuals to help cover the initial down payment on a home, with a maximum grant amount of up to $40,000. The fund will be financed through state appropriations, donations, and other public or private sources, with an initial appropriation of $30 million authorized by the General Assembly to kickstart the program.

The Rhode Island Housing and Mortgage Finance Corporation will be responsible for administering the fund, including the disbursement of grants and the establishment of rules and regulations in collaboration with the Office of Veterans Affairs and community groups. To qualify for the grants, applicants must meet specific criteria, including a minimum credit score and completion of a homebuyer education course. Additionally, those who receive grants will also be eligible for low-interest loans from RI Housing at a rate one percent lower than standard loans for non-first-time buyers or veterans. The bill is set to take effect on July 1, 2025.