The bill amends Chapter 42-55 of the General Laws to create a new section establishing the first-time homebuyers and veterans revolving fund, which is designed to assist first-time homebuyers and veterans in purchasing homes in Rhode Island. The fund will provide grants of up to $40,000 to eligible individuals for down payments on single-family homes or condominiums. It will be financed through state appropriations, donations, and other public or private sources, with an initial appropriation of $30 million authorized by the General Assembly.

The Rhode Island Housing and Mortgage Finance Corporation will administer the fund, contracting with the treasurer for the administration and disbursement of funds. The corporation will adopt rules and regulations in conjunction with the Office of Veterans Affairs and community groups to ensure the orderly and equitable disbursement of funds. To qualify for the grants, applicants must meet specific criteria, including a minimum credit score of 620, completion of a homebuyer education course, and obtaining a first mortgage through participating lenders. Additionally, grant recipients will be eligible for low-interest loans at a rate 1% lower than standard loans offered by the corporation. The bill is set to take effect on July 1, 2026.