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HB 8294

AN ACT RELATING TO PROPERTY -- ABANDONED PROPERTY

2026 Regular Session Introduced by Jackie Baginski and 6 co-sponsors

Allows court-supervised sale of abandoned property with public-benefit conditions and makes energy storage/by-right uses on certain sites, with streamlined approvals.

06/24/2026 Effective without Governor's signature
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Bill Summary · HB 8294

Summary of HB 8294 ( Rhode Island, 2026)

Purpose and intent

HB 8294 amends Rhode Island’s Abandoned Property law to streamline the disposition of abandoned buildings through court-supervised receiverships and to promote re-use of property for energy storage and related by-right development. The bill also expands by-right permitting for energy storage projects on previously contaminated or abandoned properties, aligning with redevelopment and renewable energy goals.

Key provisions

  • Sale and disposition of abandoned property (34-44-12 amendments)

    • Allows a receiver, after abatement of a public nuisance, to seek a court order to sell the building and its site.
    • If abatement has not yet occurred, and an abatement plan is approved and the building is unoccupied, the court may order sale with a protective reverter clause if the plan is not completed on time. Purchaser bears the abatement costs.
    • A mandatory hearing process with notice to the owner and interested parties, where objecting parties must prove that not selling is more beneficial than selling (preponderance of the evidence).
    • The court may condition the sale to favor public benefits, including:
    • Deeding restrictions for low- and moderate-income housing
    • Resale at least 10% below appraised value
    • Housing choice voucher program occupancy
    • Owner-occupancy requirement for 24 months post-occupancy certificate
    • Installation of an energy storage system on the property
    • The sale proceeds are prioritized to delinquent taxes, mortgages tied to the receiver, unreimbursed expenses, and then pre-receivership liens.
    • After sale, the court may terminate the receivership if accounting and distributions are in order.

  • Energy storage as a by-right use on certain properties (34-44-12(h))

    • If a court finds a public nuisance abated, an energy storage system on the property becomes a by-right use in the municipality’s zoning, consistent with the comprehensive plan, and with no significant environmental impact (subject to applicable limits).
    • Maximum structural lot coverage for such installations is 65% (municipal zoning rules apply; residential zones are exempt from this subsection).

  • Renewable Ready Program amendments (42-140.5-9)

    • On previously contaminated properties, renewable energy resources and energy storage systems are also by-right uses, deemed consistent with the municipality’s comprehensive plan, and not to have significant environmental impacts.
    • burden of proof to establish prior contamination rests with the applicant.
    • Maximum structural lot coverage for these installations is raised to 75% (from prior limits).

  • Effective date

    • The act takes effect upon passage.

Who is affected

  • Property owners involved in formal receiverships under Rhode Island’s Abandoned Property statute.
  • Municipalities and local planning/zoning authorities implementing by-right designations for energy storage and renewable energy projects.
  • Developers and investors seeking to acquire abandoned properties for energy storage, renewable energy, or low-/moderate-income housing projects.
  • Tax authorities and lienholders priorities receive explicit guidance on distribution of sale proceeds.

Procedural and timeline aspects

  • Court-supervised hearings govern the sale process, with specific burdens of proof for objectors.
  • The act outlines a phased priority for distributions from sale proceeds.
  • By-right designations for energy storage and contaminated-property redevelopment are triggered upon court actions finding nuisance abated or on previously contaminated sites, with streamlined zoning approval processes.

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

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