The bill amends Chapter 45-53 of the General Laws by introducing a new section, 45-53-17, which links a community's receipt of permanent foundation education aid to its success in meeting low- and moderate-income housing goals. Effective January 1, 2026, communities will have a five-year period to achieve a target of 10% of year-round housing units or 15% in certain urban areas as low- and moderate-income housing. If a community exceeds these goals, its education aid will increase in a percentage amount equal to the percentage by which the community exceeds its required minimum goals. The bill also stipulates that any community receiving an increase in education aid must maintain an amount of low- and moderate-income housing in excess of its statutory minimum requirements.

Additionally, the statewide planning program within the department of administration is required to certify to the general assembly by April 1 of each year the percentage and amount of low- and moderate-income housing in each municipality as of the previous year for the purposes of implementing this section.

The bill also modifies Section 16-7.2-3 of the General Laws, establishing that the provisions for indexing education aid to achieving low- and moderate-income housing levels will be applied after the yearly amount of education aid is calculated. This act aims to incentivize communities to enhance their low- and moderate-income housing stock, thereby impacting their educational funding based on their compliance with housing requirements. The act is set to take effect on January 1, 2026.

Statutes affected:
6003: 16-7.2-3