The bill amends Chapter 42-55 of the General Laws to establish a new section, 42-55-31, which creates a Home Ownership Assistance Account administered by the Rhode Island Housing and Mortgage Finance Corporation. This account aims to expand the state's supply of homeownership housing for families and individuals with incomes at or below the area median income, specifically targeting vulnerable groups such as seniors, persons of color, indigenous individuals, members of federally recognized Indian tribes, persons with disabilities, veterans, and agricultural workers. The bill mandates that 25% of certain deposited funds be allocated to this account, with a focus on distributing resources statewide while concentrating funds in areas with the greatest need.

Funds from the Home Ownership Assistance Account will be utilized for various purposes, including grants to organizations that provide down payment assistance, grants to organizations that sponsor and manage homeownership programs for eligible households, and grants and technical assistance to organizations that assist persons of color in obtaining homeownership. The bill outlines specific criteria for grant distribution, emphasizing long-term affordability, opportunities for generational wealth building, and comprehensive strategies to reverse the decreasing rates of homeownership among persons of color. The act is set to take effect upon passage.