RI 2026 H7803: Towns and Cities - Housing - State-Funded Rental Subsidy Program

Plain-English Summary

This legislation establishes a new State-Funded Rental Subsidy Program under the Executive Office of Housing. To address homelessness and housing instability, the bill appropriates $25 million from the general fund for the fiscal year beginning July 1, 2026. The program primarily provides "project-based" rental assistance, meaning the subsidy is tied to specific housing units rather than the tenant. It targets extremely low to low-income households and those with disabilities. Participating tenants will not pay more than 30% of their gross income toward rent, with the state covering the difference for the property owners.

For younger readers

This new law is designed to help people who do not have a home or who have very little money. The state government is setting aside 25 million dollars to help pay for apartments for these people. The government will pay building owners directly so that the families living there only have to pay a small amount of the money they earn for rent. This helps ensure that people with disabilities or those who might otherwise be homeless have a safe and affordable place to live.

Who & Where It Applies

Impacted groups

Homeless individualsLow-income householdsReal estate developersLandlordsTaxpayers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

$16.05

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Directly addresses the housing crisis by providing guaranteed affordable housing options for the most vulnerable populations, including the homeless and those with disabilities.
Ensures housing stability by capping rent contributions at 30% of a household's income, preventing rent burdens that often lead to eviction.
Prioritizes individuals facing high barriers to housing who are often excluded by private market screening criteria, promoting social equity and inclusion.
Relies primarily on project-based assistance rather than tenant-based vouchers, which ties the subsidy to the unit and limits the freedom of low-income tenants to move to different neighborhoods.
Directs public funds to private property owners and developers rather than investing in permanently public-owned social housing.
The $25 million appropriation is designated for a specific fiscal year, raising concerns about the long-term sustainability of the funding if future legislatures do not renew it.

For Conservatives

Utilizes private sector developers and landlords to provide housing solutions, supporting property owners with guaranteed government payments.
Strictly defines "eligible households" and ties assistance to verified income levels, ensuring resources are not wasted on those who do not financially qualify.
May reduce the visible presence of homelessness in communities, potentially improving public order and property values in affected areas.
Increases government spending by appropriating $25 million of taxpayer money for a new social welfare entitlement program.
Expands the size and scope of the state government by creating a new administrative chapter within the Executive Office of Housing.
Interferes with the free market rental economy by artificially subsidizing rents and dictating payment standards for private units.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 67 additions

SECTION 1. Legislative Findings and Purpose.

(a) The General Assembly finds as follows:

(1) The lack of genuinely affordable rental housing for extremely low, very low, and low- income households remains a primary driver of homelessness in Rhode Island;

(2) Federal Continuum of Care (CoC) funded housing programs often serve individuals and families with the highest barriers to housing stability, yet available rental assistance is insufficient to ensure long-term affordability and stability;

(3) Many households exiting homelessness require a rental subsidy that is tied to their household income, rather than typical area median income (AMI) thresholds associated with development financing; and

(4) The creation of a state-funded rental subsidy program that provides project-based rental assistance aligned to tenants' income will help reduce reliance on emergency shelters, improve housing stability, and maximize the effectiveness of federal homeless assistance resources.

(b) The purpose of chapter 71 of title 45 is to establish a state-funded rental subsidy program, including a dedicated allocation for project-based rental assistance to support eligible households experiencing homelessness or at risk of homelessness.

SECTION 2. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby amended by adding thereto the following chapter: 45-71-1. Definitions. As used in this chapter:

(1) "Administering agency" means the State of Rhode Island executive office of housing.

(2) "AMI" means area median income as determined by the U.S. Department of Housing and Urban Development (HUD), adjusted for family size.

(3) "Continuum of care (CoC)" means the federally designated continuum of care for the State of Rhode Island.

(4) "Eligible household" means an individual or household experiencing homelessness or is at risk of homelessness as defined by HUD who:

(i) Is extremely low-income, very low-income, or low-income according to current HUD income limits; or

(ii) Has a long-term disability and needs community-based supportive services.

(iii) Priority for assistance under this program shall be given to households referred through the Rhode Island continuum of care for permanent housing projects and to households identified pursuant to the state's Olmstead Plan.

(5) "Income" means gross annual income including, but not limited to; wages, salaries, tips, bonuses, public assistance, retirement, disability benefits, unemployment compensation, and interest income.

(6) "Project-based rental assistance" means a housing subsidy attached to a specific unit, where assistance continues for the household occupying that unit.

(7) "National standards for physical inspection of real estate (NSPIRE)" means standards established by the U.S. Department of Housing and Urban Development, which set uniform health, safety, and habitability requirements for federally assisted housing inspections administered by HUD. 45-71-2. State rental subsidy program established and capitalized.

(a) There is hereby established a state-funded rental subsidy program administered by the executive office of housing, to provide project-based rental assistance to permanent housing projects with units reserved for eligible households as defined in this chapter.

(b) The program is hereby capitalized with twenty-five million dollars ($25,000,000) appropriated from the general fund for fiscal year beginning July 1, 2026.

(1) Funds appropriated pursuant to this section shall be deposited into a restricted account administered by the executive office of housing and shall remain available until expended for the purposes of this chapter.

(2) Capitalized funds may be committed on a multi-year basis to provide project-based rental assistance to owners or developers serving eligible households.

(c) The administering agency shall adopt rules consistent with this chapter and existing program guidelines, including rent determination, income certification and housing quality standards.

(d) The administering agency as defined in § 45-71-1 shall make every reasonable attempt to implement the program so that households who face the greatest barriers to accessing housing are not excluded from participating due to screening criteria such as tenant selection plans. 45-71-3. Eligible use of funds.

(a) Funds capitalized under this chapter shall be used to provide project-based rental assistance payments to owners or developers of permanent housing projects that agree to reserve assisted units for eligible households.

(b) The administering agency as defined in § 45-71-1 may enter into agreements with property owners and/or housing developers to provide project-based rental assistance consistent with this chapter.

(1) Ensure that the tenant portion of rent does not exceed thirty percent (30%) of gross household income, less applicable utility allowances;

(2) Be tied to the income of the assisted household and shall not be conditioned on area median income limits applicable to the housing development; and

(3) Be layered with any other federal funding or housing resources when applicable.

(d) If deemed necessary by the administering agency, up to ten percent (10%) of available funds under this chapter may be used to provide tenant-based rental assistance for populations that face the greatest barriers to accessing housing and may not be served by project-based rental assistance. 45-71-4. Rent and payment standards.

(a) Rent for units assisted under this chapter shall be established at the greater of:

(1) The rent necessary to ensure tenant payment does not exceed thirty percent (30%) of gross household income, less utility allowances; or

(2) Any applicable minimum rent requirement established under program guidelines.

(b) Units assisted shall meet NSPIRE standards. 45-71-5. Nondiscrimination and fair housing. The administering agency as defined in § 45-71-1 shall ensure compliance with all federal and state nondiscrimination laws, including fair housing protections related to source of income.

SECTION 3. This act shall take effect upon passage.