Provides an eight percent (8%) tax rate for those properties that are encumbered by a deed restriction for low-income housing set at eight percent (80%) or sixty percent (60%) of adjusted median income established by HUD.

Plain-English Summary

This bill would create a special, reduced property tax rate for certain affordable housing properties in Rhode Island. Specifically, it sets an 8% tax rate for properties that have a legal agreement (called a deed restriction) requiring them to be used as affordable housing for people earning 80% or 60% or less of the area's median income, as defined by the U.S. Department of Housing and Urban Development (HUD). A deed restriction is essentially a binding rule attached to a property that limits how it can be used, in this case ensuring the housing remains affordable long-term.

The bill would primarily affect property owners, developers, and nonprofit organizations that own and operate income-restricted affordable housing units. By lowering the property tax burden on these properties, the bill aims to make it more financially sustainable to own and maintain housing that is set aside for lower-income residents. Tenants living in these affordable housing units could also indirectly benefit, as lower operating costs for landlords may help keep rents more stable.

It is worth noting that the bill's title contains what appears to be a typographical error, referring to "eight percent (8%)" when describing the income thresholds that should likely read "eighty percent (80%)." The bill has been introduced and referred to the Senate Housing and Municipal Government committee, where it will be reviewed before any further action is taken.