Changes the assessment for residential property where forty percent (40%) of the dwellings are below eighty percent (80%) of statewide median income and thirty percent (30%) are below sixty percent (60%).

Plain-English Summary

This bill would change how certain residential properties in Rhode Island are assessed for tax purposes. Specifically, it targets apartment buildings or housing developments where at least 40% of the units are occupied by lower-income residents — those earning below 80% of the statewide median income — and where at least 30% of the units house even lower-income residents, earning below 60% of the statewide median income. In other words, it applies to housing complexes that serve a significant number of working-class and lower-income tenants.

The bill would modify how the value of these properties is calculated for tax assessment, which directly affects how much the property owner pays in local property taxes. By changing the assessment method for qualifying properties, the bill could result in lower tax bills for landlords or developers who own and operate affordable housing. The idea behind this type of policy is generally to make it financially easier to maintain and operate housing that serves lower-income residents, since lower operating costs could help keep rents more affordable.

This bill would primarily affect property owners, developers, and housing organizations that own residential buildings meeting these income thresholds, as well as the lower-income tenants who live in them. Local municipalities could also be affected, since changes in property assessments can impact the amount of tax revenue a city or town collects. The bill has been referred to the House Municipal Government & Housing Committee and is scheduled for a hearing in April 2026.