The bill amends Chapter 42-55 of the General Laws to create a new section establishing the "first-time homebuyers and veterans revolving fund," which is designed to assist first-time homebuyers and veterans in purchasing homes in Rhode Island. The purpose of this revolving fund is to provide assistance through grants for initial down payments on homes. The fund will consist of state appropriations, donations, and other contributions, with an initial appropriation of $30 million authorized to establish the program.

The Rhode Island Housing and Mortgage Finance Corporation will administer the fund and is responsible for adopting rules and regulations for the equitable disbursement and repayment of funds. Eligible applicants must meet specific criteria, including a minimum credit score of 620, completion of a homebuyer education course, obtaining a first mortgage through a participating lender, and occupying the home as their primary residence during the loan repayment period. The fund will provide grants of up to $40,000 and will also offer access to low-interest loans at a rate of 1% less than other loans offered by the corporation for those who qualify.

The bill defines "veteran" in accordance with federal standards, specifying that it includes individuals who served on active duty for a minimum of 180 days and were discharged under conditions other than dishonorable, as well as certain reservists and National Guard members. The act is set to take effect on July 1, 2025.