The bill amends the Rhode Island Housing Resources Act of 1998, renaming it the "Comprehensive Housing Production and Rehabilitation Act of 2004." It emphasizes the need for a comprehensive housing strategy that addresses the diverse needs of various populations, including low-income families, older citizens, students, and vulnerable individuals. The bill introduces new legal language defining terms such as "affordable housing plan," "approved affordable housing plan," "moderate-income household," "seasonal housing," and "year-round housing." It also mandates the development of a five-year strategic plan for housing by July 1, 2006, which will include specific goals and measurable steps to address the housing needs of different demographics. The definition of "affordable housing" is expanded to include various financing methods and specifies income thresholds for eligibility.

Furthermore, the bill requires municipalities to maintain at least ten percent of their housing stock as low- and moderate-income housing and mandates that towns and cities update their comprehensive plans to align with the strategic plan for low- and moderate-income housing every five years. It directs the state planning council to develop guidelines for higher density development, including inclusionary zoning provisions and mixed-use development, while considering environmental and community factors. The act aims to enhance the availability and accessibility of affordable housing across Rhode Island, ensuring it meets the needs of its residents, and will take effect upon passage.