The bill amends Section 42-128-8.1 of the Rhode Island Housing Resources Act to establish a four-year pilot program, set to expire on December 31, 2029, that allows the secretary of housing to explore alternative underwriting criteria for the development of affordable dwelling units targeted at 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 limit housing costs to no more than 38% of gross household income. 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. The act will take effect upon passage.

Statutes affected:
1011: 42-128-8.1
1011  SUB A: 42-128-8.1