Bill > H5756

This bill allows municipalities to impose an additional conveyance tax on high-value residential property sales, specifically for properties sold for more than $900,000. The tax would be set at up to $10 for every $500 of the sale price above $900,000. The bill requires that the collected taxes be deposited into restricted accounts specifically designated for affordable housing purposes. Municipalities have two options for using these funds: either they can directly allocate the money to create and develop affordable housing for individuals or families at or below 80% of the area median income within two years, or they can transfer the funds to state housing agencies like Rhode Island Housing to develop affordable housing in the community. The local government must maintain a housing board to oversee these funds and include the allocation process in their local comprehensive housing plan. This legislation aims to leverage high-value property sales as a mechanism to generate resources for affordable housing development, providing municipalities with a new tool to address housing accessibility and affordability. The bill takes effect immediately upon passage.

Budget and Finance

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