The bill establishes a new chapter, Chapter 55.2, within Title 42 of the General Laws, creating a "Housing Land Bank Program" operated by the Rhode Island Housing and Mortgage Finance Corporation. This program aims to facilitate the acquisition and development of affordable housing by allowing the corporation to buy, receive, and hold real property. The properties held in the land bank can be donated or sold to qualified affordable housing developers, including public housing authorities and nonprofit organizations. If no eligible entity is found to redevelop a property, the corporation can sell it without restrictions, provided that the net proceeds are reinvested into the land bank.

The bill also designates that the corporation shall hold title to real estate assets for disposal according to the purposes described in the new chapter. It allows the corporation to acquire real property through various means, including gift, transfer, and purchase, and to accept donations from municipalities and private entities. The corporation is required to maintain a public inventory of all properties received for deposit into the land bank, including details such as location, purchase price, and transferor identity.

Furthermore, the bill includes provisions that exempt land in the land bank from legal processes during the period it is held by the corporation, unless pledged as security for a loan. It mandates that municipalities conduct annual reviews of their real estate assets to identify properties not under current or planned use, and to provide this inventory to the corporation and the department of housing.

Additionally, the bill amends Section 37-7-6 to allow the transfer of state-owned land to the Rhode Island Housing and Mortgage Finance Corporation or its subsidiaries for the purpose of developing affordable or mixed-income housing, requiring reasonable compensation for the transfer of state-owned group homes. The act is set to take effect upon passage, with the intent of enhancing the availability of affordable housing in Rhode Island.

Statutes affected:
5955  SUB A: 37-7-6