AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING AND MORTGAGE FINANCE CORPORATION (Expands Rhode Island Housing’s authority to revise the qualified allocation plan to prioritize cost-efficient affordable housing production and total units, while reducing the scoring weight of non-production-related criteria.)

H7226

2026 -- H 7226
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LC003629
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING
AND MORTGAGE FINANCE CORPORATION

Introduced By:
Representatives Chippendale, Place, Nardone, J. Brien, Newberry,
Santucci, Paplauskas, Quattrocchi, Hopkins, and Fascia

Date Introduced:
January 21, 2026

Referred To:
House Municipal Government & Housing
It is enacted by the General Assembly as follows:
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SECTION 1. Section 42-55-5 of the General Laws in Chapter 42-55 entitled "Rhode Island
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Housing and Mortgage Finance Corporation" is hereby amended to read as follows:
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42-55-5. General powers.
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The corporation shall have all of the powers necessary and convenient to carry out and
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effectuate the purposes and provisions of this chapter; including, but without limiting the generality
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of the foregoing, the power to:
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(1) Sue and be sued in its own name;
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(2) Have an official seal and alter it at pleasure;
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(3) Have perpetual succession;
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(4) Maintain an office in the city of Providence or at any other place or places within this
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state as it may designate;
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(5) Adopt and from time to time amend and repeal bylaws, rules, and regulations, not
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inconsistent with this chapter, to carry into effect the powers and purposes of the corporation and
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the conduct of its business, and such bylaws, rules, and regulations may contain provisions
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indemnifying any person who is or was a commissioner, officer, employee, or agent of the
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corporation, or is or was serving at the request of the corporation as a commissioner, director,
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officer, employee, or agent of another corporation, partnership, joint venture, trust, or other
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enterprise, in the manner and to the extent provided in § 7-1.2-814;

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(6) Make and execute contracts and all other instruments necessary or convenient for the
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exercise of its powers and functions under this chapter;
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(7) Acquire real or personal property, or any interest therein, on either a temporary or long
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term basis in its own name by gift, purchase, transfer, foreclosure, lease, or otherwise, including
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rights or easements in property; to hold, sell, assign, lease, encumber, mortgage, or otherwise
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dispose of any real or personal property or any interest therein; to hold, sell, assign, or otherwise
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dispose of any mortgage interest owned by it or under its control, custody or in its possession; and
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to release or relinquish any right, title, claim, lien, interest, easement, or demand, however acquired,
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including any equity or right of redemption in property foreclosed by it, and to do any of the
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foregoing by public or private sale, with or without public bidding, notwithstanding the provisions
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of any other law;
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(8) Enter into agreements or other transactions with and accept grants and the cooperation
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of the United States or any governmental agency or instrumentality thereof or of the state or any
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governmental agency or instrumentality thereof in furtherance of the purposes of this chapter,
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including, but not limited to, the development, maintenance, operation, and financing of any
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housing development, housing project, or healthcare facility, and to do any and all things necessary
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in order to avail itself of such aid and cooperation;
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(9) Make contracts with the state or any governmental agency thereof, municipalities, and
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counties of the state, the federal government, public corporations or bodies, and private
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corporations or individuals;
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(10) Receive and accept aid or contributions from any source of money, property, labor, or
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other things of value, to be held, used, and applied to carry out the purposes of this chapter subject
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to the conditions upon which the grants and contributions may be made, including, but not limited
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to, gifts or grants from any governmental agency or instrumentality of the United States or this state
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for payment of rent supplements to eligible persons or families or for the payment in whole or in
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part of the interest expense for a housing development, housing project, or healthcare facility or for
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any other purpose consistent with this chapter;
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(11) Provide, contract, or arrange for consolidated processing of any aspect of a housing
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development, housing project, or healthcare facility in order to avoid duplication thereof by either
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undertaking that processing in whole or in part on behalf of any governmental agency, or
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instrumentality of the United States or of this state, or, in the alternative, to delegate the processing
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in whole or in part to any governmental agency or instrumentality;
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(12) Stimulate environmental planning for housing for persons of low and moderate
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income in order to enhance opportunities of those persons for self-development and employment;

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(13) Employ architects, engineers, attorneys, accountants, housing construction and
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financial experts, and any other advisors, consultants, and agents that may be necessary in its
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judgment and to fix their compensation;
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(14) Procure insurance against any loss in connection with its property and other assets,
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including mortgages and mortgage loans, in any amounts and from any insurers as it deems
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desirable;
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(15) Subject to any agreement with bondholders or note holders, invest monies of the
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corporation not required for immediate use, including proceeds from the sale of any bonds or notes,
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in any securities, obligations, time or other deposit accounts as shall be permitted by law for
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investment or deposit of state funds by the general treasurer and in secured promissory notes held
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by municipal corporations which notes represent the borrowings by third parties of federal grants;
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(16) Include in any borrowing any amount deemed necessary by the corporation to pay
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financing charges, interest on these obligations for any period the corporation shall permit,
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consultant, advisory and legal fees, and those other expenses that are necessary or incident to this
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borrowing;
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(17) Subject to any agreements with bondholders or note holders, to purchase bonds or
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notes of the corporation out of any funds or money of the corporation available for this purpose,
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and to hold, cancel, or resell those bonds or notes;
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(18) Make and publish rules and regulations respecting its lending programs and any other
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rules and regulations that are necessary to effectuate its corporate purposes;
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(19) Make and execute contracts with mortgage bankers or other financial institutions in
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this state for the servicing of mortgages acquired by the corporation pursuant to this chapter, and
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pay the reasonable value of services rendered to the corporation pursuant to these contracts;
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(20) Subject to any agreement with bondholders or note holders, renegotiate, refinance, or
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foreclose, or contract for the foreclosure of, any mortgage in default; waive any default or consent
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to the modification of the terms of any mortgage; commence any action to protect or enforce any
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right conferred upon it by any law, mortgage, contract, or other agreement, and bid for and purchase
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property at any foreclosure or at any other sale, or acquire or take possession of property; operate,
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manage, lease, dispose of, and otherwise deal with this property, in any manner necessary to protect
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the interest of the corporation and the holders of its bonds, notes, and other obligations;
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(21) Borrow money and issue bonds and notes or other evidences of indebtedness;
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(22) Subject to any agreement with bondholders or note holders, consent to any
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modification with respect to rate of interest, time, and payment of any installment of principal or
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interest security or any other term of any contract, mortgage, mortgage loan, mortgage loan

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commitment, contract, or agreement of any kind to which the corporation is a party;
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(23) Procure or agree to the procurement of insurance or guarantees from the federal
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government or any governmental agency or instrumentality thereof, or from any private insurance
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company, of the payment of any bonds or notes or any other evidences of indebtedness issued by
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the corporation including the power to pay premiums on that insurance;
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(24) Insure long-term mortgage loans made by mortgage lenders approved by the
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corporation to eligible housing sponsors as determined by the corporation. The corporation may
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establish any terms and conditions it deems necessary for the supervision of the holders of
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corporation insured loans and for its insurance program, including the maximum amount which
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may be insured, maximum interest rates, down payment requirements, refinancing terms, insurance
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premium requirements, and remedies on default or foreclosure;
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(25) Make temporary loans, with or without interest, to eligible housing sponsors of single-
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family residential housing units to be owned and occupied by the sponsor to defray down payment
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costs and charges on mortgage loans purchased or made by the corporation;
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(26) Make and undertake to make any and all contracts and agreements, including the
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payment of fees, with mortgage lenders in this state for assistance rendered to the corporation;
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(27) Subject to any agreement with bondholders or note holders, to purchase and make
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commitments for the purchase of, to invest in, and dispose of securities or other obligations issued
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by mortgage lenders to finance residential housing for persons and families of low and moderate
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income, including, but not limited to, securities or other obligations payable from, backed by or
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otherwise evidencing an interest in mortgages securing mortgage loans to finance residential
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housing for persons and families of low and moderate income;
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(28) To the extent permitted under its contract with the holders of bonds, bond anticipation
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notes and other obligations, enter into contracts with any mortgagor containing provisions enabling
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the mortgagor to reduce the rental or carrying charges to families of persons unable to pay the
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regular schedule of charges for housing where, by reason of other income or payment from any
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department, agency, or instrumentality of the United States or this state, the reductions can be made
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without jeopardizing the economic stability of housing being financed;
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(29) Establish any programs of compensation, including deferred compensation and
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retirement plans, as the commissioner may deem appropriate;
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(30) Do any and all things necessary or convenient to carrying out its purposes and exercise
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the powers given and granted in this chapter;
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(31) Issue assurances and guarantees and to secure them with any collateral that the
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corporation may deem appropriate;

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(32) Notwithstanding any other law to the contrary, to make subsidies in furtherance of its
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corporate purposes, whether in the form of interest cost savings or otherwise, and to require a
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recipient thereof to repay all or any portion of that subsidy upon those terms and conditions that
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the corporation may establish;
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(33) Establish an insurance fund and to insure therefrom, either alone or in conjunction
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with private enterprise, the state, the United States, or any governmental agency or instrumentality
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thereof, mortgage loans or participations whether or not made or acquired by the corporation;
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(34) Establish an equal employment and affirmative action program applicable to direct
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and indirect recipients of funds of the corporation;
and
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(35) To administer and manage Section 8 tenant based certificate programs and Section 8
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rental voucher programs in those municipalities that do not have a local housing authority and in
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those municipalities whose local housing authority elects to contract with Rhode Island housing
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mortgage and finance corporation
; and
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(36) To establish, revise, and administer the qualified allocation plan (“QAP”) for the
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allocation of federal Low-Income Housing Tax Credits, and in exercising such authority, to
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prioritize scoring criteria that maximize the production of low- and moderate-income housing,
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including cost-efficiency and the total number of income-restricted units produced, and to limit the
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cumulative weighting of supplemental criteria not directly related to housing production, consistent
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with applicable federal law
.
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SECTION 2. This act shall take effect upon passage.
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LC003629
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING
AND MORTGAGE FINANCE CORPORATION
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This act would expand Rhode Island Housing’s authority to revise the qualified allocation
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plan to prioritize cost-efficient affordable housing production and total units, while reducing the
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scoring weight of non-production-related criteria.
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This act would take effect upon passage.
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LC003629
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