Skip to main content
S 2903Water Resources

Waters and Navigation - Residential and Commercial Property Acquisition Program Act

Creates a voluntary state program to buy properties in high-risk flood zones and convert the land to natural open space.

Held for study
Population
Affected
35
Email Legislator
Introduced Mar 4, 2026Committee Senate Housing & Municipal Government

Plain-English Summary

This legislation establishes the "Residential and Commercial Property Acquisition Program Act." It creates a voluntary system for the state and local municipalities to buy properties located in high-risk flood or climate hazard zones. The program funds technical assistance for towns to identify vulnerable areas and plan for "managed retreat." Once a property is purchased, the existing structures are removed, and the land is permanently protected from development, restored to its natural habitat, or used for public recreation. Funding is provided through state appropriations, catastrophe bonds, and potential federal matching funds.

For younger readers

This new law helps people who live or work in places that flood a lot or are dangerous because of storms. If a house or building is in a danger zone, the government can offer to buy it from the owner so they can move to a safer place nearby. This is a choice; no one is forced to sell. After buying the property, the government will tear down the building and turn the land back into nature or a park for everyone to enjoy. They will promise never to build there again to keep everyone safe.

Who & Where It Applies

Impacted groups
Coastal Property OwnersMunicipal GovernmentsDepartment of Environmental ManagementInsurance CompaniesRhode Island Infrastructure Bank
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
$0.32
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Prioritizes climate justice by mandating that community vulnerability assessments explicitly consider social vulnerability and the disproportionate impacts of climate change on overburdened, low-income, and historically marginalized communities.
  • Expands public goods by converting high-risk private property into restored natural habitats and public recreation areas, thereby increasing community access to shorelines and riverfronts that were previously restricted.
  • Promotes proactive climate adaptation through "managed retreat," providing a pathway for residents to relocate to safer housing before disaster strikes, preventing future displacement and economic ruin for vulnerable families.
  • The appropriation of only $500,000 for technical assistance is likely insufficient to address the magnitude of the climate crisis, potentially leaving resource-poor municipalities without the ability to participate effectively.
  • The provision allowing the state to capture insurance premium discounts from homeowners to fund the program could be viewed as regressive, effectively taxing individuals trying to mitigate risk to subsidize the broader system.
  • Linking housing development funds to municipal participation could inadvertently fuel gentrification if the "safer areas" rezoned for new density become unaffordable for the low-income residents displaced from hazard zones.
For Conservatives
  • The program is strictly voluntary, upholding private property rights by ensuring that homeowners and business owners are not subject to eminent domain or forced government seizure of their land.
  • Promotes fiscal responsibility by proactively removing structures from high-hazard zones, which reduces the long-term taxpayer burden associated with repetitive emergency response, infrastructure repair, and disaster relief payouts.
  • Utilizes financial market mechanisms, such as catastrophe bonds and insurance premium negotiations, to help fund the program rather than relying exclusively on direct tax increases.
  • Expands the size and scope of government by creating a new bureaucracy involving multiple agencies (DEM, CRMC, Infrastructure Bank) to manage local property issues and distribute funds.
  • Permanently removes private property from municipal tax rolls by prohibiting future construction and converting land to state-owned open space, shifting the tax burden to remaining residents to maintain services.
  • Interferes with local control by pressuring municipalities to alter zoning laws and increase housing density in exchange for access to state development funding, overriding local community standards.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 101 additions

SECTION 1. Title 46 of the General Laws entitled "WATERS AND NAVIGATION" is hereby amended by adding thereto the following chapter: 46-34-1. Short title. This chapter shall be known and may be cited as the "Residential and Commercial Property Acquisition Program Act." 46-34-2. Purpose. The purpose of this chapter is to implement a voluntary residential or commercial property acquisition program in high-hazard zones, paired with funding for relocation costs to safer areas within or proximate to the current community. This chapter seeks to restore the acquired land to its natural habitat and use it to enhance community resilience and enhance shoreline or riverine access and outdoor recreation. 46-34-3. Definitions. As used in this chapter:

(1) “Community vulnerability assessment” means a systematic evaluation that identifies and analyzes the exposure, sensitivity, and adaptive capacity of people, built and natural assets, and essential services within a defined community to current and projected climate related and natural hazards including, but not limited to, sea level rise, coastal and riverine flooding, storm surge, extreme precipitation, erosion, heat, and related secondary impacts. The assessment shall:

(i) Use the best available, scientifically-backed, and up-to-date climate, hazard, and socioeconomic data and methods;

(ii) Identify populations, facilities, infrastructure, and natural resources whose impairment would significantly affect public health, safety, welfare, economic activity, cultural resources, or environmental quality;

(iii) Consider social vulnerability, including the disproportionate impacts on overburdened, low income, and historically marginalized communities; and

(iv) Inform the future development, prioritization, and financing of adaptation and mitigation actions, capital investments, land use and zoning changes, and emergency preparedness measures to enhance coastal resilience and reduce future risk.

(2) “Council” means the coastal resource management council.

(3) “Department” means the department of environmental management. 46-34-4. Amount of funding. The general assembly shall appropriate the sum of five hundred thousand dollars ($500,000) within its 2026-2027 fiscal year budget for technical assistance to municipalities within the Resilient Rhody Infrastructure Fund for the purpose of assisting municipalities in planning for managed retreat. 46-34-5. Eligibility and planning process.

(a) All municipalities are eligible for a first round of funding for technical assistance to undergo the planning process described in subsection (b) of the section.

(b) No more than eight (8) months after the effective date of this chapter, the Rhode Island infrastructure bank, the department and council, shall create a managed retreat planning process for municipalities. The planning process shall align with and build on prior municipal resilience planning and community vulnerability assessments, where available. The Rhode Island infrastructure bank, department and council shall build upon the existing municipal resilience program and community resilience building reports, as well as inter-governmental collaboration and assistance provided by the department’s regional resilience coordinators, to structure and deliver this planning process. The process shall include, but not be limited to:

(1) Creation by the municipality of a community vulnerability assessment if one does not already exist.

(2) Creation by the municipality through a public process, a prioritized list of parcels and/or residential neighborhoods and/or mixed-use areas and a timeframe for voluntary buyouts. Instead of a timeframe, a municipality may condition a voluntary buyout on a storm event of a certain magnitude.

(3) Calculation of cost estimates for the voluntary buyouts of the parcels, relocation assistance and incentives to relocate within the boundaries of the municipality or adjacent municipalities, debris cleanup, restoring each parcel to its natural habitat, and any maintenance thereafter.

(4) Designate a staff member or regional coordinator under the department to work with homeowners and landowners to pre-file paperwork required for federal emergency management agency funding, state funding, and municipal funding, if applicable.

(5) Take ownership of the parcel after a voluntary buyout and may form public-private partnerships to utilize the land, in ways benefitting outdoor recreation and uses that are open to the public; provided that, a state easement is procured for the parcel; and further, provided that, utilization of the land shall align with council special area management plans, if applicable, and provide public parking spaces where appropriate.

(6) Prohibit the construction of permanent structures on the parcel after purchase.

(c) Municipalities who complete the planning process described in subsection (b) of this section, shall become eligible for revolving loan funds, grant funds, and catastrophe bond funds established pursuant § 46-12.2-4.4, and the treasurer’s office.

(d) After the first municipality completes the planning process described in subsection (b) of this section, and annually thereafter, the treasurer shall be authorized to issue, rescind, or re- issue catastrophe bonds in an amount appropriate to cover the cost-estimates provided by the municipalities for voluntary buyouts after a storm event. 46-34-6. Prioritization.

(a) No more than eight (8) months after the effective date of this chapter, the Rhode Island infrastructure bank, the department and council, shall create a funding prioritization process after a public hearing and stakeholder engagement process:

(b) One factor in funding prioritization shall be a municipality’s planning and/or implementation of ongoing revenue streams dedicated to the Resilient Rhody Infrastructure Fund, including, but not limited to, commercial tax increment districts, stormwater districts, sewer districts, transfer of development rights funds, and developer impact fees.

(c) No more than sixteen (16) months after the effective date of this chapter, and dependent on funding availability, the Rhode Island infrastructure bank, the department and council, shall award funding to eligible municipalities, and thereafter, on an annual basis, according to the established prioritization process.

(d) In the event of a storm that triggers the catastrophe bond, the treasurer’s office, Rhode Island infrastructure bank, the department and council, shall award funding to eligible municipalities within one month of receiving the funds from the catastrophe bonds, according to the established prioritization process. 46-34-7. Other authorizations to secure additional funding. The Rhode Island infrastructure bank, the department and council are authorized to apply for federal funding sources and use available funds in the Resilient Rhody Infrastructure Fund as matching funds for federal funding programs in order to fund voluntary buyouts. 46-34-8. Insurance. The department of business regulation is authorized to negotiate insurance premium discounts for parcels whose owners opt into a voluntary buyout. The department of business regulation is also authorized to form an agreement with homeowners and landowners to collect a percentage or whole amount of these insurance premium discounts and put this amount into the Resilient Rhody Infrastructure Fund. 46-34-9. Criteria of awards. The department of housing shall revise their criteria when awarding housing development funds to prioritize municipalities that undergo the planning process described in § 46-34-5(b) and have revised their zoning and development policies to accommodate new housing for residents who have opted into a voluntary buyout.

SECTION 2. This act shall take effect upon passage.