The proposed bill establishes a state-funded rental subsidy program in Rhode Island aimed at providing project-based rental assistance to eligible households experiencing homelessness or at risk of homelessness. The program specifically targets extremely low-income, very low-income, and low-income individuals and families, with priority given to those referred through the Rhode Island continuum of care for permanent housing projects and those identified pursuant to the state's Olmstead Plan.

The bill includes an initial capitalization of $25 million from the general fund, which will be appropriated starting July 1, 2026, to support this initiative. The new chapter added to Title 45 of the General Laws outlines definitions, eligibility criteria, and the administration of the program. It specifies that rental assistance will ensure that the tenant portion of rent does not exceed 30% of gross household income, less applicable utility allowances, and will be tied to the income of the assisted household rather than area median income limits.

Additionally, the bill mandates that the administering agency adopt rules consistent with the chapter and existing program guidelines, including rent determination, income certification, and housing quality standards. It also requires compliance with all federal and state nondiscrimination laws, including fair housing protections related to source of income. Overall, the legislation aims to provide a sustainable solution for housing stability among the most vulnerable populations in Rhode Island.