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HB 5955

AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- HOUSING LAND BANK PROGRAM

2025 Regular Session Introduced by Karen Alzate and 3 co-sponsors

Creates a state housing land bank run by RI Housing to acquire, hold, and transfer land for affordable housing, with public inventory and municipal surplus-land reporting.

06/27/2025 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · HB 5955

Summary — HB 5955: Housing Land Bank Program (Rhode Island)

Status: Signed by Governor on June 27, 2025
Introduced: February 28, 2025 (House Municipal Government & Housing)
Primary sponsor(s): Reps. Speakman, Giraldo, Voas, Alzate
Enacting statute: Adds Chapter 42-55.2 to Title 42 (State Affairs & Government)

Purpose
- Establish a state-operated "housing land bank" to acquire, hold, and transfer real property for the stated purpose of developing affordable housing in Rhode Island.

Key provisions and changes
- Creation and operator
- Rhode Island Housing and Mortgage Finance Corporation (“the corporation”) will operate the housing land bank.
- Title to land bank properties will be held in the name of a corporation-designated subsidiary.

  • Acquisition authority (§42-55.2-3)

    • The corporation may acquire property or interests in property by gift, transfer, purchase, foreclosure, exchange, lease-purchase, installment sale, or other means.
    • It may use its funds or funds it controls and may accept donations/transfers from municipalities, quasi-public entities, nonprofits, the state, or private donors.
    • Municipalities may freely transfer municipal properties to the land bank on jointly agreed terms.

  • Eligible recipients and disposition (§42-55.2-1)

    • Real estate held will be donated or sold for housing to affordable housing developers, including public housing authorities or qualified 501(c)(3) organizations, following corporation guidelines developed with the Department of Housing.
    • If no eligible redeveloper is found, the corporation may sell the property without use restrictions; any net proceeds must be reinvested in the land bank.

  • Transparency and public inventory (§42-55.2-4)

    • The corporation must maintain a publicly accessible inventory listing location, purchase price (if any), transferor identity, and any conditions/restrictions.
    • Parcels must be listed within 10 business days of acquisition and appear on the corporation website (including street, parcel size, and structure info) within 20 business days.
    • Parcels must remain on the inventory for at least five business days before disposition.

  • Rejection authority and environmental considerations (§42-55.2-5)

    • The corporation may reject proposed transfers for reasons including contamination or other factors that could harm finances or operations.

  • Legal protections and partition (§42-55.2-6)

    • Land bank property is generally exempt from attachment, execution, or other judicial/administrative process while held (except where pledged as security).
    • For divided ownership, the corporation may seek partition in superior court to obtain fee simple title; orders are recordable and binding.

  • Municipal surplus land review (§42-55.2-7)

    • By July 1, 2027 municipalities must identify municipal real estate not in current or planned use and provide inventories to the corporation and Department of Housing by October 1, 2027.
    • Thereafter, municipalities must submit additional surplus inventories each year by October 1.
    • The corporation and Department of Housing will work with municipalities to assess suitability for affordable housing.

Who is affected
- Municipal governments (required to review and report surplus land); Rhode Island Housing and Mortgage Finance Corporation (operator); affordable housing developers/nonprofits and public housing authorities (primary recipients); property owners and creditors (legal process limitations); the public (transparency of inventory).

Procedural/timeline highlights
- Enacted into law: June 27, 2025.
- Municipal surplus-land inventory deadlines: initial assessment as of July 1, 2027; inventories due Oct 1, 2027 and annually thereafter.

Note on source material
- The provided document also included an unrelated Michigan draft (tax exemption language). That Michigan text is not part of Rhode Island HB 5955 and appears to have been appended in error.

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

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