Bill > H5688

This bill amends Rhode Island's tax law to provide a preferential 8% tax rate for residential properties with deed restrictions that ensure affordable housing for low-income households. Specifically, properties qualify for this reduced tax rate if they have at least 40% of units affordable to households at 80% of the area median income, or at least 30% of units affordable to households at 60% of the area median income. The bill also introduces a 30-year tax stabilization schedule for residential properties converted from non-residential buildings, starting at 8% of rental income and gradually increasing to 12% over time. Additionally, the bill provides protections for existing properties approved for this tax treatment before December 31, 2024, allowing them to maintain their previously established tax rates unless the property owner chooses otherwise. The legislation emphasizes that creating low-income and adaptive reuse housing is a state-wide concern, and prohibits municipalities from imposing higher tax rates on qualifying properties. Key terms like HUD (Department of Housing and Urban Development) and median income are used to define affordability criteria, with the goal of incentivizing the development and preservation of affordable housing in Rhode Island.

Housing and Urban Affairs

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