The bill amends Section 44-5-13.11 of the General Laws regarding the assessment and taxation of qualifying low-income housing. It establishes an eight percent (8%) tax rate for residential rental properties that have been issued occupancy permits on or after January 1, 1995, and are encumbered by a covenant recorded in the land records in favor of a governmental unit or Rhode Island housing and mortgage finance corporation. At least 40% of the rental dwelling units must be affordable to households earning at or below 80% of the statewide area median income, or at least 30% must be affordable to those earning at or below 60%. Additionally, it outlines a tax stabilization schedule for properties converted from non-residential to residential use, starting at 8% of the previous year's gross scheduled rental income and gradually increasing to 12% over 30 years.

The legislation includes provisions for responsible contracting compliance, requiring contractors to meet specific standards, including having valid registrations and licenses, ensuring craft labor has completed OSHA training, and complying with all state, federal, and local laws. For projects with budgets exceeding $10 million, contractors must participate in registered apprenticeship programs, and for projects over $25 million, all construction workers must be paid in accordance with prevailing wage laws. The bill ensures that municipalities cannot tax qualifying properties at rates higher than those established in the bill and allows for the transfer of tax treatment to new property owners under certain conditions. The provisions for the tax stabilization schedule will expire for residential rental housing not created by July 1, 2037. The act will take effect upon passage.

Statutes affected:
3160: 44-5-13.11