STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING AND MORTGAGE FINANCE CORPORATION, the official text

S2371 2026 -- S 2371 ======== LC003308 ======== STATE OF RHODE ISLAND IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2026 ____________ A N A C T RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING AND MORTGAGE FINANCE CORPORATION Introduced By: Senators Paolino, Ciccone, Gu, Acosta, Mack, Vargas, and Ujifusa Date Introduced: January 30, 2026 Referred To: Senate Finance It is enacted by the General Assembly as follows: 1 SECTION 1. Chapter 42-55 of the General Laws entitled Rhode Island Housing and 2 Mortgage Finance Corporation is hereby amended by adding thereto the following section: 3 42-55-31. Revolving fund to assist first-time homebuyers and veterans. 4 (a) There is hereby created, as a separate fund within the treasury, the first-time 5 homebuyers and veterans revolving fund (the revolving fund ). The purpose of this revolving fund 6 is to provide assistance to first-time homebuyers and veterans who are buying a home, through a 7 revolving fund. The revolving fund shall assist these homebuyers in acquiring sufficient funds for 8 an initial down payment on a home in Rhode Island, by providing grants. The revolving fund shall 9 consist of any sums that the state may from time to time appropriate, as well as money received 10 from donations, gifts, bequests, or otherwise from any public or private source, which money is 11 intended to assist with promoting home purchases for first-time homebuyers and veterans. The 12 general assembly shall authorize an appropriation of thirty million dollars ($30,000,000) to provide 13 initial funding to establish this revolving fund. 14 (b) The treasurer shall contract with the Rhode Island housing and mortgage finance 15 corporation (hereinafter sometimes referred to as RI housing ) for the administration and 16 disbursement of funds. The Rhode Island housing and mortgage finance corporation shall adopt 17 rules and regulations in conjunction with the office of veterans affairs within the department of 18 human services as well as with appropriate community groups consistent with the purposes of this 1 section and chapter 35 of title 42 ( administrative procedures ), which provide for the orderly and 2 equitable disbursement and repayment of funds. 3 (c) Funds placed in the revolving fund shall be made available as follows: 4 (1) To make grants to a first-time homebuyer or a veteran purchasing a single-family home 5 or condominium in Rhode Island; 6 (2) Not to exceed the maximum price on a home purchase for which a grant may be issued 7 from the revolving fund established by the median single-family house price on the market in 8 Rhode Island as determined by the Rhode Island realtors association or any successor organization; 9 (3) To be eligible for a grant from the revolving fund, a prospective purchaser shall: 10 (i) Have a minimum credit score of at least six hundred twenty (620); 11 (ii) As part of the application process, complete a homebuyer education course, available 12 in person or online through RI housing; 13 (iii) Obtain a RI housing-funded first-mortgage through a participating lender or the RI 14 housing loan center; and 15 (iv) Occupy the home as their primary residence during the period of the loan repayment. 16 (d) The revolving fund shall provide a dollar-for-dollar match to be used as a down- 17 payment up to forty thousand dollars ($40,000). 18 (e) In addition, applicants who qualify for a grant from the revolving fund shall also be 19 eligible for a loan from RI housing or its affiliates at a special rate of interest which rate is one 20 percent (1%) less than any other loan RI housing is offering to buyers who are not first-time home 21 purchasers or veterans. This reduced rate shall remain on the loan until the loan is refinanced, the 22 real property is resold, or the loan is repaid in full. This reduced interest rate shall not apply to a 23 loan issued or authorized by RI housing or its affiliates which has an interest rate of four percent 24 (4%) or less. 25 (f) As used herein, the term veteran means a person who served on active duty with the 26 U.S. Army, Air Force, Navy, Marine Corps, or Coast Guard, for a minimum of one hundred eighty 27 (180) days and who was discharged or released under conditions other than dishonorable. 28 Reservists or members of the National Guard called to federal active duty (for other than training) 29 or disabled from a disease or injury incurred or aggravated in the line of duty or while in training 30 status also qualify as a veteran pursuant to 38 C.F.R. part 74. 31 SECTION 2. This act shall take effect on July 1, 2026. ======== LC003308 ======== LC003308 - Page 2 of 3 EXPLANATION BY THE LEGISLATIVE COUNCIL OF A N A C T RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING AND MORTGAGE FINANCE CORPORATION *** 1 This act would establish a revolving fund to assist first-time homebuyers and veterans to 2 purchase a home in Rhode Island by issuing grants of up to forty thousand dollars ($40,000). The 3 revolving fund would be administered by the Rhode Island housing and mortgage finance 4 corporation. This act would also authorize the Rhode Island housing and mortgage finance 5 corporation to issue low interest loans to applicants who qualify for the grants. The act would also 6 provide for an initial appropriation of thirty million dollars ($30,000,000) to establish the revolving 7 fund. 8 This act would take effect on July 1, 2026. ======== LC003308 ======== LC003308 - Page 3 of 3