Bill > S2713

This bill, titled the Property Equity Protection Act, aims to safeguard property owners from losing their home equity when their property is seized to satisfy a government debt, such as unpaid taxes. It establishes a new chapter in Rhode Island law that allows property owners up to five years to redeem their property after a tax debt becomes delinquent, or before a treasurer's deed is issued, provided certain conditions are met. A key provision prevents the foreclosure of a tax lien or deed unless the outstanding tax debt, including penalties and fees, exceeds five percent of the property's fair market value or $50,000, whichever is less. The bill also mandates more robust notice requirements for property owners and lienholders, including certified mail and publication, and outlines a clear process for distributing any surplus funds from a tax sale back to the owner. Additionally, it limits the interest rate on delinquent taxes to the bank prime loan rate plus three percent and restricts penalties to reasonable collection costs. The bill also amends existing law to align foreclosure petition timelines with these new protections, particularly for properties owned by the Rhode Island Housing and Mortgage Corporation, and ensures that foreclosure petitions are only filed when the tax debt meets the specified threshold relative to the property's value.

Justice

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