AN ACT RELATING TO TOWNS AND CITIES -- HOUSING -- STATE-FUNDED RENTAL SUBSIDY PROGRAM (Establishes the state-funded rental subsidy program.)

H7803

2026 -- H 7803
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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 TOWNS AND CITIES -- HOUSING -- STATE-FUNDED RENTAL SUBSIDY
PROGRAM

Introduced By:
Representatives Slater, and Bennett

Date Introduced:
February 12, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Legislative Findings and Purpose.
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(a) The General Assembly finds as follows:
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(1) The lack of genuinely affordable rental housing for extremely low, very low, and low-
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income households remains a primary driver of homelessness in Rhode Island;
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(2) Federal Continuum of Care (CoC) funded housing programs often serve individuals
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and families with the highest barriers to housing stability, yet available rental assistance is
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insufficient to ensure long-term affordability and stability;
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(3) Many households exiting homelessness require a rental subsidy that is tied to their
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household income, rather than typical area median income (AMI) thresholds associated with
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development financing; and
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(4) The creation of a state-funded rental subsidy program that provides project-based rental
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assistance aligned to tenants' income will help reduce reliance on emergency shelters, improve
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housing stability, and maximize the effectiveness of federal homeless assistance resources.
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(b) The purpose of chapter 71 of title 45 is to establish a state-funded rental subsidy
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program, including a dedicated allocation for project-based rental assistance to support eligible
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households experiencing homelessness or at risk of homelessness.
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SECTION 2. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby
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amended by adding thereto the following chapter:

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CHAPTER 71
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STATE-FUNDED RENTAL SUBSIDY PROGRAM
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45-71-1. Definitions.

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As used in this chapter:
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(1) "Administering agency" means the State of Rhode Island executive office of housing.
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(2) "AMI" means area median income as determined by the U.S. Department of Housing
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and Urban Development (HUD), adjusted for family size.
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(3) "Continuum of care (CoC)" means the federally designated continuum of care for the
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State of Rhode Island.
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(4) "Eligible household" means an individual or household experiencing homelessness or
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is at risk of homelessness as defined by HUD who:
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(i) Is extremely low-income, very low-income, or low-income according to current HUD
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income limits; or
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(ii) Has a long-term disability and needs community-based supportive services.
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(iii) Priority for assistance under this program shall be given to households referred through
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the Rhode Island continuum of care for permanent housing projects and to households identified
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pursuant to the state's Olmstead Plan.
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(5) "Income" means gross annual income including, but not limited to; wages, salaries, tips,
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bonuses, public assistance, retirement, disability benefits, unemployment compensation, and
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interest income.
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(6) "Project-based rental assistance" means a housing subsidy attached to a specific unit,
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where assistance continues for the household occupying that unit.
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(7) "National standards for physical inspection of real estate (NSPIRE)" means standards
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established by the U.S. Department of Housing and Urban Development, which set uniform health,
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safety, and habitability requirements for federally assisted housing inspections administered by
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HUD.
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45-71-2. State rental subsidy program established and capitalized.

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(a) There is hereby established a state-funded rental subsidy program administered by the
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executive office of housing, to provide project-based rental assistance to permanent housing
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projects with units reserved for eligible households as defined in this chapter.
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(b) The program is hereby capitalized with twenty-five million dollars ($25,000,000)
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appropriated from the general fund for fiscal year beginning July 1, 2026.
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(1) Funds appropriated pursuant to this section shall be deposited into a restricted account
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administered by the executive office of housing and shall remain available until expended for the

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purposes of this chapter.
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(2) Capitalized funds may be committed on a multi-year basis to provide project-based
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rental assistance to owners or developers serving eligible households.
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(c) The administering agency shall adopt rules consistent with this chapter and existing
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program guidelines, including rent determination, income certification and housing quality
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standards.
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(d) The administering agency as defined in § 45-71-1 shall make every reasonable attempt
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to implement the program so that households who face the greatest barriers to accessing housing
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are not excluded from participating due to screening criteria such as tenant selection plans.
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45-71-3. Eligible use of funds.

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(a) Funds capitalized under this chapter shall be used to provide project-based rental
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assistance payments to owners or developers of permanent housing projects that agree to reserve
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assisted units for eligible households.
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(b) The administering agency as defined in § 45-71-1 may enter into agreements with
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property owners and/or housing developers to provide project-based rental assistance consistent
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with this chapter.
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(c) Assistance provided pursuant to the provisions of this chapter shall:
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(1) Ensure that the tenant portion of rent does not exceed thirty percent (30%) of gross
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household income, less applicable utility allowances;
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(2) Be tied to the income of the assisted household and shall not be conditioned on area
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median income limits applicable to the housing development; and
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(3) Be layered with any other federal funding or housing resources when applicable.
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(d) If deemed necessary by the administering agency, up to ten percent (10%) of available
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funds under this chapter may be used to provide tenant-based rental assistance for populations that
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face the greatest barriers to accessing housing and may not be served by project-based rental
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assistance.
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45-71-4. Rent and payment standards.

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(a) Rent for units assisted under this chapter shall be established at the greater of:
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(1) The rent necessary to ensure tenant payment does not exceed thirty percent (30%) of
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gross household income, less utility allowances; or
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(2) Any applicable minimum rent requirement established under program guidelines.
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(b) Units assisted shall meet NSPIRE standards.
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45-71-5. Nondiscrimination and fair housing.

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The administering agency as defined in § 45-71-1 shall ensure compliance with all federal

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and state nondiscrimination laws, including fair housing protections related to source of income.
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SECTION 3. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TOWNS AND CITIES -- HOUSING -- STATE-FUNDED RENTAL SUBSIDY
PROGRAM
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This act would establish the state-funded rental subsidy program. The act would authorize
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an initial capitalization of twenty-five million dollars ($25,000,000), to create the program to help
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Rhode Islanders with the lowest incomes exit homelessness and stay stably housed. This act would
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also authorize the appropriation from the state general fund beginning July 1, 2026.
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This act would take effect upon passage.
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