AN ACT RELATING TO WATERS AND NAVIGATION -- RHODE ISLAND INFRASTRUCTURE BANK (Establishes the rural housing development revolving fund for the purpose of providing loans to support low- and moderate-income housing development projects in rural areas.)

H7315

2026 -- H 7315
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LC003622
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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 WATERS AND NAVIGATION -- RHODE ISLAND INFRASTRUCTURE
BANK

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

Date Introduced:
January 23, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Chapter 46-12.2 of the General Laws entitled "Rhode Island Infrastructure
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Bank" is hereby amended by adding thereto the following section:
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46-12.2-4.5. Establishment of the rural housing development revolving fund.

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(a) There is hereby authorized and created within the Rhode Island infrastructure bank the
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rural housing development revolving fund for the purpose of providing loans to support low- and
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moderate-income housing development projects in rural areas.
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(1) For the purposes of this section, "rural areas" means any census area with a population
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of less than fifty thousand (50,000) people.
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(2) The Rhode Island infrastructure bank shall review and approve applications for projects
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to be financed through the resilient rural housing development revolving fund.
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(3) The Rhode Island infrastructure bank shall promulgate rules and regulations to
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effectuate the provisions of this section which may include, without limitation, forms for financial
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assistance applications, loan agreements, and other instruments. All rules and regulations
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promulgated pursuant to this chapter shall be promulgated in accordance with the provisions of
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chapter 35 of title 42 (“administrative procedures”).
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(b) The Rhode Island infrastructure bank shall have all the powers necessary and
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convenient to carry out and effectuate the purposes and provisions of this section including, without
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limiting the generality of the preceding statement, the authority:

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(1) To receive and disburse funds as may be available to implement the purpose of the
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provisions of this section;
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(2) To make and enter into binding commitments to provide financial assistance to eligible
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borrowers from amounts on deposit in the fund;
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(3) To levy administrative fees on eligible borrowers as necessary to effectuate the
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provisions of this section, provided the fees have been previously authorized by an agreement
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between the Rhode Island infrastructure bank and the eligible borrower;
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(4) To engage the services of third-party vendors to provide professional services;
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(5) To establish one or more accounts within the fund; and
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(6) Such other authority as granted to the Rhode Island infrastructure bank under this
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chapter.
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(c) Subject to the provisions of this section and to any agreements with the holders of any
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bonds of the Rhode Island infrastructure bank or any trustee therefor, amounts held by the Rhode
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Island infrastructure bank for the account of the fund shall be applied by the Rhode Island
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infrastructure bank, either by direct expenditure, disbursement, or transfer to one or more other
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funds and accounts held by the Rhode Island infrastructure bank or maintained under any trust
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agreement pertaining to bonds, either alone or with other funds of the Rhode Island infrastructure
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bank, for the following purposes:
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(1) To provide financial assistance to local governmental units to finance costs of approved
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projects, as set forth in subsection (a) of this section, and to refinance the costs of the projects,
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subject to such terms and conditions, if any, as are determined by the Rhode Island infrastructure
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bank;
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(2) To fund reserves for bonds of the Rhode Island infrastructure bank and to purchase
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insurance and pay the premiums therefor, and pay fees and expenses of letters or lines of credit and
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costs of reimbursement to the issuers thereof for any payments made thereon or on any insurance,
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and to otherwise provide security for, and a source of payment for obligations of the Rhode Island
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infrastructure bank, by pledge, lien, assignment, or otherwise as provided in this chapter;
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(3) To pay expenses of the Rhode Island infrastructure bank in administering the fund;
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(4) To provide a reserve for, or to otherwise secure, amounts payable by borrowers on loans
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and obligations outstanding in the event of default thereof; amounts in any account in the fund may
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be applied to defaults on loans outstanding to the borrower for which the account was established
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and, on a parity basis with all other accounts, to defaults on any loans or obligations outstanding;
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and
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(5) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or

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otherwise as provided in this chapter, any bonds of the Rhode Island infrastructure bank.
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(d) In addition to other remedies of the Rhode Island infrastructure bank under any loan
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agreement or otherwise provided by law, the Rhode Island infrastructure bank may also recover
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from a borrower, in an action in superior court, any amount due the Rhode Island infrastructure
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bank together with any other actual damages the Rhode Island infrastructure bank shall have
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sustained from the failure or refusal of the borrower to make the payments or abide by the terms of
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the loan agreement.
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(e) The Rhode Island infrastructure bank may create one or more loan loss reserve funds
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to serve as further security for any loans made by the Rhode Island infrastructure bank or any bonds
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of the Rhode Island infrastructure bank issued to fund energy efficiency improvements in public
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buildings in accordance with this section.
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(f) To the extent possible, and in accordance with law, the Rhode Island infrastructure bank
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shall encourage the use of project labor agreements for projects over ten million dollars
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($10,000,000) and local hiring on projects funded under this section.
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(g) For the fiscal year 2027, the State of Rhode Island shall appropriate the sum of ten
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million dollars ($10,000,000) from the one hundred twenty million dollar ($120,000,000) housing
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bond for deposit in the revolving fund established pursuant to subsection (a) of this section to
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implement the provisions of this section.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO WATERS AND NAVIGATION -- RHODE ISLAND INFRASTRUCTURE
BANK
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This act would establish the rural housing development revolving fund for the purpose of
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providing loans to support low- and moderate-income housing development projects in rural areas
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and would appropriate the sum of ten million dollars ($10,000,000) from the one hundred twenty
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million dollar ($120,000,000) housing bond to implement the program.
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This act would take effect upon passage.
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