The bill amends Section 42-128-8.1 of the Rhode Island Housing Resources Act to include a provision for a four-year pilot program, set to expire on December 31, 2029. This program authorizes the secretary of housing to explore alternative underwriting criteria to aid in the development of affordable dwelling units for sale to moderate-income households. Under this program, moderate-income households are defined as those earning between 100% and 120% of the area median income, adjusted for Metropolitan Statistical Area (MSA) and household size. The alternative underwriting criteria will allow for a maximum of 38% of gross household income to be allocated for housing costs. Any dwelling unit developed under this pilot program that meets the requirements of the definition of low- or moderate-income housing will be eligible as low- and moderate-income housing. Additionally, the secretary of housing is required to provide updates on the status of the pilot program and any related outcomes as part of the annual integrated housing report.

Statutes affected:
5956: 42-128-8.1
5956  SUB A: 42-128-8.1