The proposed Residential Reuse Incentive Act in Rhode Island aims to address the housing shortage by promoting the adaptive reuse of existing buildings into multi-family or mixed-use housing. The act establishes a state program that provides financial support through low-interest loans, subordinate debt, equity investments, or competitive grants for qualified residential reuse projects. To be eligible, applicants must demonstrate a project financing gap and align with state policy objectives, including a requirement that at least 20% of the units be designated as affordable housing.

The act sets forth specific labor, wage, and apprenticeship standards for larger projects, ensuring that construction workers are compensated according to prevailing wage laws and that a significant portion of hours worked is performed by apprentices from registered programs. Additionally, the act creates a residential reuse incentive fund to manage appropriated funds and outlines the responsibilities of the Rhode Island Housing and Mortgage Finance Corporation in administering the program.

The provisions of this act will sunset and expire on December 31, 2035, and it will take effect immediately upon passage.