WeVote
Log In

Bill

Bill

SB 3159

AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RESIDENTIAL REUSE INCENTIVE ACT

2026 Regular Session Introduced by Jake Bissaillon and 2 co-sponsors

Creates a fund to finance adaptive reuse of buildings into affordable multi-family or mixed-use housing, with strong labor and workforce standards.

06/04/2026 Referred to House Municipal Government & Housing
0
WeVote Research Nonpartisan
Bill Summary · SB 3159

Summary of SB 3159 (2026) – Residential Reuse Incentive Act (Rhode Island)

Purpose and main intent

SB 3159 proposes creating the Residential Reuse Incentive Act, a state program administered by the Rhode Island Housing and Mortgage Finance Corporation. The goal is to encourage adaptive reuse and redevelopment of existing buildings into multi-family housing or mixed-use developments, with a focus on incorporating affordable housing and meeting workforce standards. The program would provide financial support (loans, subordinate debt, equity investments, or grants) to qualified projects that demonstrate a financing gap and align with state housing priorities.

Key provisions and changes

  • Program establishment and administration

    • Establishes the Residential Reuse Incentive Fund (restricted account) within the Rhode Island Housing and Mortgage Finance Corporation.
    • The fund may receive state appropriations, federal/private funds, repayments, fees, asset recoveries, and other sources.
    • The corporation is responsible for approving funding, with concurrence from the Secretary of Housing. It may set terms, conditions, and oversee administration and integrity.

  • Definitions (scope of terms used)

    • Clarifies terms such as adaptive reuse, affordable housing (per existing Rhode Island statute), project, qualified residential reuse project, housing land bank, hard construction costs, and others to guide eligibility and standards.

  • Eligibility and project requirements

    • Projects must be multi-family residential or mixed-use.
    • Adaptive reuse projects must involve structures of at least 15,000 square feet gross floor area.
    • At least 20% of dwelling units must be affordable housing, or for rental projects, at least 10% of units must have rents (and utilities) affordable to households at or below 50% of area median income (with an affordability standard verified by a monitoring agent).
    • For hard construction costs exceeding certain thresholds, labor standards apply:
    • If hard construction costs exceed $25 million, workers must be paid prevailing wages and monthly certified payrolls must be filed.
    • If hard construction costs exceed $10 million, the project must ensure 100% of hours are performed by workers from apprenticeship programs, with at least 10% of hours performed by apprentices.
    • Projects must demonstrate senior debt co-investment from a union pension fund or a co-mingled union fund with a track record in affordable housing.
    • Contractors and subcontractors must meet licensure, safety (OSHA 10), wage and hour laws, and proper employee classification.
    • Debarred/suspended or recently noncompliant contractors are disallowed.

  • Priority considerations

    • Preference for projects using a Real Estate asset held by the housing land bank.
    • Preference for partnerships involving health or education employers (and unions) to provide housing opportunities for health/education workers.

  • Funding and project financing

    • The program can provide low-interest loans, subordinate debt, equity investments, or competitive grants to eligible projects.
    • Funds must be used in accordance with rules and may leverage other local, state, or federal programs and financing structures (e.g., insured/credit-enhanced mortgages, mortgage-backed securities).

  • Monitoring, reporting, and sunset

    • Annual reporting on fund commitments, disbursements, uses, and, where feasible, economic impact of completed projects.
    • The act includes a sunset provision: the program expiries on December 31, 2035 (no new funding or incentives after that date).

Who is affected

  • Developers, owners, or tenants seeking to convert or rehabilitate existing buildings into affordable multi-family or mixed-use housing.
  • Construction workers and contractors involved in eligible projects, subject to wage, apprenticeship, safety, and licensing requirements.
  • Health and education sectors through potential workforce housing partnerships.
  • Housing agencies and labor organizations via co-investment requirements and workforce standards.
  • Rhode Island residents who may gain access to affordable housing options in redeveloped neighborhoods.

Procedural and timeline highlights

  • Introduced March 27, 2026; referred to Senate Housing & Municipal Government.
  • Funding decisions reside with the Rhode Island Housing and Mortgage Finance Corporation, with final approval requiring the Secretary of Housing.
  • Annual reporting due within 60 days after the fiscal year end.
  • Sunset of program eligibility and funding authority set for December 31, 2035.
  • Effective date: upon passage.

Overall, SB 3159 aims to revitalize existing structures into affordable, workforce-accessible housing while imposing strong labor and integrity standards and creating a dedicated funding mechanism for these projects.

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

Sign in to ask a question.