Bill
HB 8101
Rhode Island HB 8101 strengthens control over abandoned properties by tightening definitions, boosting abatement and receivership tools, and enabling court-ordered sales to promote
HB 8101 (Rhode Island, 2026) — An Act Relating to Property — Abandoned Property
Overview
- Purpose: Strengthen and clarify the state’s approach to abandoned and nuisance properties by refining definitions, expanding municipal duties, and enlarging the court-ordered toolbox for abatement, rehabilitation, and disposition of such properties.
- Effective date: Upon passage.
Key Provisions and Changes
1) Inventory and notice requirements for abandoned properties
- Municipal obligation: By April 2, 2025, every town/city must publish an inventory of properties that may qualify as abandoned under the chapter. The list must be updated annually and posted in the town/city clerk’s office and on the municipal website.
- Notification to owners: The last known record owner(s) must receive notice by first-class mail when a property is included on the list.
- Ongoing status: Exclusion from the list does not remove a property from possible abatement under the chapter; court findings can still apply.
- Legal effect of publication: Publishing the list is not a basis for legal claims against the municipality.
2) Definitions (amendments to refine standards)
- Abandonment: Reaffirms that abandonment is inferred from intent to abandon evidenced by acts/failures (e.g., severe code violations, vacancy, poor maintenance, unrepaired vandalism, nonpayment of rents). New or clarified considerations:
- A property is not deemed abandoned if it is part of a redevelopment plan or actively marketed for sale.
- A building that is vacant and not collecting rents may still be considered not abandoned if maintained and the owner is responsive to health/safety issues.
- Abatement: Defined as removing or correcting hazardous conditions and performing rehabilitation work to keep the property safe and habitable; closing or boarding up a public nuisance alone is not abatement.
- Public nuisance: Requires documentation of health/safety risks via code violations, condemnation, or official notices identifying risk and failure to address it.
- Other terms: Definitions provided for “building,” “interested party,” and “neighboring landowner” (within 200 feet).
3) Injunctive relief and abatement process
- Jurisdiction and remedies: If a property is listed as abandoned and linked to violations under state or municipal building/housing codes, an injunction may be sought requiring the owner to remedy conditions or eliminate violations.
- Filing requirements for injunction: Must include inventory documentation, violation documentation, and evidence that abandonment criteria are met.
- Public nuisance proceeding: Separate process to obtain relief if the owner has had a reasonable chance to act.
4) Public nuisance determination, show-cause, and appointment of a receiver
- After nuisance findings, the court must notify owners, mortgagees, and interested parties and may appoint a receiver to abate the nuisance.
- Receiver appointment: A court-certified attorney serves as receiver. Prior to appointment, parties with senior interests (mortgagees/liens) are offered the opportunity to undertake the work and supply materials, with the ability to post a performance security.
- Costs and liens: Expenses approved by the court may be secured by a lien on the property, with priority status similar to a mortgage of a receiver.
- Access and plans: Parties can obtain limited access to prepare viable rehabilitation plans for the property.
5) Sale of property by receiver
- Conditions for sale: If abatement has occurred, or if a plan is approved but the property is unoccupied, the court may order sale after a hearing.
- Sale terms: The sale may include conditions such as low-income housing designation, sale at least 10% below appraised value, housing voucher occupancy, or a requirement of owner-occupancy for 24 months post-occupancy.
- Use of sale proceeds: Proceeds distributed first to delinquent taxes, then to mortgage liens, unreimbursed expenses, and finally prior encumbrances, in order of priority.
- Title issues: The court may remove title clouds as part of sale; additional actions may be required to clear liens.
6) Post-sale and receivership termination
- If sale proceeds and costs are distributed in accordance with the order, the court may terminate the receivership after final accounting.
- If costs are unpaid after abatement, the court may order further sale of the property to satisfy costs.
Exclusions
- Properties owned by the Rhode Island Housing and Mortgage Finance Corporation (and subsidiaries) are exempt from this act.
Who is affected
- Municipalities: Must maintain inventories, publish lists, and pursue abatement through court processes as needed.
- Property owners and interested parties: Notified of listings and potential court actions; may participate in injunctions or receivership procedures.
- Mortgagees, lienholders, neighboring landowners, and nonprofit housing organizations: Held defined rights to appear, participate, or undertake rehabilitation work.
- Public at large: Strengthened mechanisms to abate dangerous or unsanitary properties; potential re-development or sale that supports housing goals.
Procedural and Timeline Notes
- Inventory publication deadline: April 2, 2025 (and annual updates thereafter).
- Hearings: In abatement actions, hearings are generally scheduled with at least 20 days’ notice, though earlier hearings can be held for immediate health/safety threats.
- Receivership: Court-appointed, with a qualified attorney as receiver; liens may be placed to secure incurred costs.
- Sale process: Possible through a court-ordered sale with conditions favoring public interest and affordable housing outcomes.
- Effective date: Immediate upon passage of the act.
Overall Impact
HB 8101 aims to modernize and formalize Rhode Island’s approach to abandoned properties by tightening abandonment criteria, strengthening injunctive and abatement remedies, enabling court-supervised receiverships, and facilitating orderly sale and rehabilitation to address blight, health and safety hazards, and public interest in housing. It emphasizes documentation, timely action, and possibilities to promote affordable or rehabilitated housing outcomes.
Compiled from official sources — confirm details with the bill’s official record.
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