SECTION 1. Chapter 34-2 of the General Laws entitled "Capacity to Hold Real Estate" is hereby amended by adding thereto the following section: 34-2-2. Ownership of single-family dwelling, and certain multi-family dwellings by entities that are not individuals.
(a) As used in this section, the following terms shall have the following meanings:
(1) “Multi-family dwelling” means a residential property containing two (2) to four (4) dwelling units.
(2) “Single-family dwelling” means a residential property containing no more than a single dwelling unit.
(b) If a legal entity that is not an individual possesses, controls, or otherwise claims legal title to assets in real property whose aggregate value exceeds twenty-five million dollars ($25,000,000), then such an entity shall be prohibited from owning single-family dwellings, or multi-family dwellings. For the purposes of this section, legal entities owned by the same individual, or group of individuals shall be considered a single entity for the purposes of calculating the aggregate value of real property.
(c) Legal entities that possess, control, or otherwise claim legal title to assets in real property whose aggregate value exceeds twenty-five million dollars ($25,000,000) prior to the effective date of this section, shall divest from assets consisting of single-family dwellings, and/or multi-family dwellings over a period of ten (10) years, until the total aggregate value held by such an entity is less than or equal to twenty-five million dollars ($25,000,000).
(d) Applicable entities affected by this section shall divest from single-family dwellings, and/or multi-family dwellings according to the following schedule:
(1) In the first full taxable year beginning after the effective date of this section, entities that possess, control, or otherwise claim legal title to single-family dwellings, or multi-family dwellings shall divest from their holdings in these dwellings by ten percent (10%) of the aggregate total over twenty-five million dollars ($25,000,000) as of the effective date of this section.
(2) In the second full taxable year beginning after the effective date of this section, entities that possess, control, or otherwise claim legal title to single-family dwellings, or multi-family dwellings shall divest from their holdings in these dwellings by twenty percent (20%) of the aggregate total over twenty-five million dollars ($25,000,000) as of the effective date of this section.
(3) In the third full taxable year beginning after the effective date of this section, entities that possess, control, or otherwise claim legal title to single-family dwellings, or multi-family dwellings shall divest from their holdings in these dwellings by thirty percent (30%) of the aggregate total over twenty-five million dollars ($25,000,000) as of the effective date of this section.
(4) In the fourth full taxable year beginning after the effective date of this section, entities that possess, control, or otherwise claim legal title to single-family dwellings, or multi-family dwellings shall divest from their holdings in these dwellings by forty percent (40%) of the aggregate total over twenty-five million dollars ($25,000,000) as of the effective date of this section.
(5) In the fifth full taxable year beginning after the effective date of this section, entities that possess, control, or otherwise claim legal title to single-family dwellings, or multi-family dwellings shall divest from their holdings in these dwellings by fifty percent (50%) of the aggregate total over twenty-five million dollars ($25,000,000) as of the effective date of this section.
(6) In the sixth full taxable year beginning after the effective date of this section, entities that possess, control, or otherwise claim legal title to single-family dwellings, or multi-family dwellings shall divest from their holdings in these dwellings by sixty percent (60%) of the aggregate total over twenty-five million dollars ($25,000,000) as of the effective date of this section.
(7) In the seventh full taxable year beginning after the effective date of this section, entities that possess, control, or otherwise claim legal title to single-family dwellings, or multi-family dwellings shall divest from their holdings in these dwellings by seventy percent (70%) of the aggregate total over twenty-five million dollars ($25,000,000) as of the effective date of this section.
(8) In the eighth full taxable year beginning after the effective date of this section, entities that possess, control, or otherwise claim legal title to single-family dwellings, or multi-family dwellings shall divest from their holdings in these dwellings by eighty percent (80%) of the aggregate total over twenty-five million dollars ($25,000,000) as of the effective date of this section.
(9) In the ninth full taxable year beginning after the effective date of this section, entities that possess, control, or otherwise claim legal title to single-family dwellings, or multi-family dwellings shall divest from their holdings in these dwellings by ninety percent (90%) of the aggregate total over twenty-five million dollars ($25,000,000) as of the effective date of this section.
(10) In the tenth full taxable year beginning after the effective date of this section, entities that possess, control, or otherwise claim legal title to single-family dwellings, or multi-family dwellings shall divest from their holdings in these dwellings by one hundred percent (100%) of the aggregate total over twenty-five million dollars ($25,000,000) as of the effective date of this section.
(e) The value of single-family homes and multi-family homes for the purposes of calculating an entity’s aggregate total value shall be equal to the assessed value of the property used for the purposes of determining municipal real estate tax, as published by the entity pursuant to § 34-18-58(a)(7).
(f) Beginning January 1, 2027 and each year thereafter, the maximum allowable aggregate total of real property as established in subsection (b) of this section, shall be adjusted for inflation using the most recent Consumer Price Index (CPI) report as published by the United States Bureau of Labor and Statistics.
(g) Should the aggregate total value of real property held by an entity exceed twenty-five million dollars ($25,000,000) due to increased valuation of said property, then the entity shall have one year from the date of reevaluation to divest such real property that causes the aggregate total valuation to exceed twenty-five million dollars ($25,000,000).
(g) Entities found in violation of this section after a hearing pursuant to chapter 35 of title 42 (“administrative procedures”) shall be subjected to fines up to, but not exceeding, ten thousand dollars ($10,000) for each violation. The secretary of the department of housing shall be responsible for enforcing the provisions of this section by promulgating rules and regulations necessary to implement the provisions of this section.
(h) Exempt entities. The provisions of this section shall not apply to:
(1) Any nonprofit organization organized under § 501(c)(3) of the Internal Revenue Code whose primary purpose is the development, ownership, operation, or preservation of affordable housing;
(2) Community land trusts;
(3) Municipal housing authorities or public housing agencies; and
(4) Any nonprofit entity certified by the department of housing as an affordable housing provider.
SECTION 2. Section 34-18-58 of the General Laws in Chapter 34-18 entitled "Residential Landlord and Tenant Act" is hereby amended to read as follows: 34-18-58. Statewide mandatory rental registry.
(a) All landlords shall register the following information with the department of health:
(1) Names of individual landlords or any business entity responsible for leasing to a tenant under this chapter;
(2) An active business address, PO box, or home address;
(3) An active email address;
(4) An active telephone number that would reasonably facilitate communications with the tenant of each dwelling unit;
(5) Any property manager, management company, or agent for service of the property, along with the business address, PO box, or home address of the property manager, management company, or agent and including:
(i) An active email address; and
(ii) An active telephone number, for each such person or legal entity, if applicable, for each dwelling unit; and
(6) Information necessary to identify each dwelling unit.; and
(7) The assessed value of each property as used for the purposes of calculating municipal property taxes as well as the aggregate value of all properties owned by the individual landlords or any business entity.
(b) All landlords who lease a residential property constructed prior to 1978 and that is not exempt from the requirements of chapter 128.1 of title 42 (“lead hazard mitigation”) shall, in addition to the requirements of subsection (a) of this section, for each dwelling unit, provide the department of health with a valid certificate of conformance in accordance with chapter 128.1 of title 42 (“lead hazard mitigation”) and regulations derived therefrom, or evidence sufficient to demonstrate that they are exempt from the requirement to obtain a certificate of conformance.
(c) Contingent upon available funding, the department of health, or designee, shall create a publicly accessible online database containing the information obtained in accordance with subsections (a) and (b) of this section, no later than nine (9) months following the effective date of this section [June 20, 2023].
(d) All landlords subject to the requirements of subsections (a) and (b) of this section as of September 1, 2024, shall register the information required by those subsections no later than October 1, 2024. A landlord who acquires a rental property, or begins leasing a rental property to a new tenant, after September 1, 2024, shall register the information required by subsections (a) and (b) of this section within thirty (30) days after the acquisition or lease to a tenant, whichever date is earlier. All landlords subject to the requirements of subsections (a) and (b) of this section shall, following initial registration, re-register by October 1 of each year in order to update any information required to comply with subsections (a) and (b) of this section, or to confirm that the information already supplied remains accurate.
(e) Any person or entity subject to subsections (a) and (b) of this section who fails to comply with the registration provision in subsection (d) of this section, shall be subject to a civil fine of at least fifty dollars ($50.00) per month for failure to register the information required by subsection (a) of this section, or at least one hundred and twenty-five dollars ($125) per month, for failure to register the information required by subsection (b) of this section.
(f) All civil penalties imposed pursuant to subsection (e) of this section shall be payable to the department of health. There is to be established a restricted receipt account to be known as the “rental registry account” which shall be a separate account within the department of health. Penalties received by the department pursuant to the terms of this section shall be deposited into the account. Monies deposited into the account shall be transferred to the department of health and shall be expended for the purpose of administering the provisions of this section or lead hazard mitigation, abatement, enforcement, or poisoning prevention. No penalties shall be levied under this section prior to October 1, 2024.
(g) Notwithstanding the provisions of § 34-18-35, a landlord or any agent of a landlord may not commence an action to evict for nonpayment of rent in any court of competent jurisdiction, unless, at the time the action is commenced, the landlord is in compliance with the requirements of subsections (a), (b), and (d) of this section. A landlord must present the court with evidence of compliance with subsections (a), (b), and (d) of this section at the time of filing an action to evict for nonpayment of rent in order to proceed with the civil action.
(h) The department of health may commence an action for injunctive relief and additional civil penalties of up to fifty dollars ($50.00) per violation against any landlord who repeatedly fails to comply with subsection (a) of this section. The attorney general may commence an action for injunctive relief and additional civil penalties of up to one thousand dollars ($1,000) per violation against any landlord who repeatedly fails to comply with subsection (b) of this section. Any penalties obtained pursuant to this subsection shall be used for the purposes of lead hazard mitigation, abatement, enforcement, or poisoning prevention, or for the purpose of administering the provisions of this section. No penalties shall be levied under this section prior to October 1, 2024.
SECTION 3. This act shall take effect on January 1, 2027.
