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SB 2674

AN ACT AUTHORIZING THE CITY OF PROVIDENCE TO ISSUE NOT TO EXCEED $25,000,000 GENERAL OBLIGATION BONDS AND NOTES TO FUND THE PROVIDENCE HOUSING TRUST FUND TO FINANCE AFFORDABLE MULTI-FAMILY HOUSING PROJECTS IN THE CITY

2026 Regular Session Introduced by Sam Bell and 5 co-sponsors

Providence can issue up to $25 million in bonds to fund affordable, multi-family housing through the Providence Housing Trust Fund.

06/19/2026 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · SB 2674

Summary of SB 2674 (Rhode Island, 2026)

Purpose and intent

  • Authorizes the City of Providence to issue general obligation bonds and notes totaling up to $25 million to fund the Providence Housing Trust Fund.
  • The goal is to finance affordable, multi-family housing projects within the city.

Key provisions and changes

  • Section 1: Authorized bond authority
    • Providence may issue up to $25,000,000 in general obligation bonds/notes, in serial, term, or a combination.
    • Bond terms may be structured with annual principal payments for serial bonds or mandatory sinking fund installments for term bonds.
    • Bonds may be zero coupon, capital appreciation bonds, serial bonds, or term bonds (or combos).
    • Principal appreciation after original issuance is treated as interest for debt-limit calculations; only original principal counts toward debt.
    • Maximum maturity: first principal installment no later than 5 years after issue; last installment no later than 30 years after issue.
  • Section 2: Use of bond proceeds
    • Proceeds, excluding premiums and accrued interest, must be used to: 1) Fund the Providence Housing Trust Fund for affordable multi-family housing projects in Providence. 2) Pay principal/interest on temporary notes issued under Section 3. 3) Repay advances under Section 4. 4) Pay costs of issuance of bonds/notes. 5) Pay funded interest.
    • Proceeds, federal/state assistance, and other monies are deemed appropriated for these purposes.
    • Proceeds may be consolidated with other Providence bonds, but must still be used for the stated purposes.
  • Section 3: Temporary notes in anticipation
    • City Council may authorize short-term notes in anticipation of bond issuance or aid.
    • Original notes cannot exceed the amount of bonds that may be issued; notes in anticipation of aid cannot exceed available aid.
    • Notes must be payable within 5 years; renewals permitted with constraints ensuring the total horizon remains within 5 years.
    • Refundings allowed under specified limits (no more than 200% of the bond-issuable amount outstanding at any time; proceeds may be deposited in a trust until used).
  • Section 4: Interim financing with city funds
    • The City Treasurer (with City Council approval) may apply general city funds toward purposes in Section 2 and repay without interest from future bond proceeds or applicable aid.
  • Section 5: Investment of proceeds
    • Interim deposits/investments allowed in FDIC-insured banks, U.S. government securities, or other legally permitted investments; subject to city investment policy.
  • Section 6: Interest, premiums, and net earnings
    • Accrued interest from bond sales goes to first interest payment.
    • Premiums and net earnings from investments may be used for issuance costs, project costs, debt service, city revenues, or property tax revenues, as allowed by law.
  • Section 7: Debt and annual appropriation
    • Bonds/notes are obligatory city debts, similar to other debts.
    • The city must annually appropriate funds to pay principal and interest coming due, or else add to the annual tax levy.
    • All taxable property in Providence may be subject to ad valorem taxation without rate/amount limits to cover debt obligations.
  • Section 8: Validity of bonds/notes
    • Bonds/notes are valid even if officers signing have left office.
  • Section 9: Federal/state aid and advances
    • City may apply for/ expend federal/state advances or other aid; federal law prevails in case of conflict.
    • Advances may be repaid as a project cost.
  • Section 10: Issuance without external approvals
    • Bonds/notes may be issued without other governmental approvals unless required by this act. Actions must still meet constitutional requirements.
  • Section 11: Authorized actions by city officers
    • City Treasurer and Mayor may execute necessary documents and ensure compliance with tax/securities laws, including continuing disclosure requirements.
  • Section 12: Expiration of authority
    • Any unissued authority to issue bonds/notes can be extinguished by City Council resolution after 7 years from effective date.
  • Section 13: Local referendum
    • A statewide-level but city-specific question would appear on the November 3, 2026 general election ballot: whether to approve the act.
    • The election form and related procedures are specified; the city charter and ordinances take a backseat to this act where applicable.
  • Section 14: Effective dates
    • Sections 13–14 (the referendum and related timing) take effect on passage.
    • The remainder of the act takes effect upon approval by Providence electors via the Section 13 ballot question.

Procedural and timeline aspects

  • Introduction and referral: February 27, 2026; referred to Senate Finance.
  • Hearing/consideration: Scheduled for May 12, 2026 (per action history).
  • Election timing: If approved, the act (Sections 13–14) becomes effective; the bond authority would be active upon elector approval.
  • Sunset/expiry: Authority to issue unissued bonds/notes can be extinguished after 7 years if not used.

Potential impact and who is affected

  • Affected entity: City of Providence and its housing programs.
  • Primary impact: Creates a dedicated funding vehicle (Providence Housing Trust Fund) for affordable multi-family housing projects, financed through up to $25 million in general obligation bonds/notes.
  • Financial implications: Establishes annual debt service requirements; may broaden the city’s borrowing capacity for housing initiatives but also imposes long-term debt obligations subject to voter approval and annual appropriation.
  • Beneficiaries: Residents and communities in Providence seeking affordable multi-family housing and related supportive services; potential construction, long-term rental affordability, and neighborhood development outcomes.

Compiled from official sources — confirm details with the bill’s official record.

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