TITLE 42

State Affairs and Government

CHAPTER 42-55.1

Housing Trust Fund

SECTION 42-55.1-1



   § 42-55.1-1  Rhode Island housing trust

fund – Creation. –

(a) There is created a trust fund to be known as the "Rhode Island housing

trust fund" which shall be administered by the Rhode Island housing and

mortgage finance corporation without liability on the part of the state beyond

the amounts paid into and earned by the housing trust fund.



   (b) The housing trust fund shall consist of five million

dollars ($5,000,000), fifty percent (50%) of which will be set aside, within

thirty (30) days of June 10, 1988, and the remaining fifty percent (50%) will

be set aside on or before November 1, 1988, by the Rhode Island housing and

mortgage finance corporation from its existing housing endowment fund, and of

all other monies paid into and received by the housing trust fund, and of any

property and securities as may be acquired by and through the use of monies

belonging to the housing trust fund, and of all interest earned upon monies,

property, and securities belonging to the housing trust fund. All monies in the

housing trust fund shall be mingled and undivided. Additional monies for the

housing trust fund created hereby may only be designated by an act of the

general assembly, but in no event shall any contribution by the Rhode Island

housing and mortgage finance corporation exceed sixty percent (60%) of the

available funds for distribution from its housing endowment fund.



   (c) All monies received by the Rhode Island housing and

mortgage finance corporation for account of the housing trust fund shall, upon

receipt, be deposited by the Rhode Island housing and mortgage finance

corporation in a clearance account in a bank in this state.



   (d) Monies in the housing trust fund shall be used

exclusively for the development and preservation of housing affordable to low

and moderate income persons and families in Rhode Island as follows:



   (1) Thirty-three and one-third percent (33 1/3%) in any one

fiscal year of the monies in the housing trust fund shall be used to provide

financial assistance to mutual housing associations, nonprofit housing

development corporations, and limited equity housing cooperatives;



   (2) Thirty-three and one-third percent (33 1/3%) in any one

fiscal year of the monies in the housing trust fund shall be used to provide

financial assistance to for-profit corporations, associations, and partnerships;



   (3) Thirty-three and one-third percent (33 1/3%) in any one

fiscal year of the monies in the housing trust fund shall be used to provide

financial assistance to those corporations, partnerships, associations,

cooperatives, or other organizations set forth in subdivisions (1) and (2) of

this subsection, whether profit or nonprofit, as the Rhode Island housing and

mortgage finance corporation shall determine based upon its rules and

regulations. In the award of those funds, priority shall be given to the

following factors:



   (i) Housing which provides the longest term of affordability,



   (ii) Housing which will be produced at the lowest cost per

unit consistent with standards set by the Rhode Island housing and mortgage

finance corporation,



   (iii) Housing which provides the greatest number of units for

families, and



   (iv) Housing which is located in areas that best provide for

fair housing opportunities;



   (4) In order to finance housing under clauses (1) and (2) of

this subsection which could not otherwise be funded because of a lack of monies

in the balance of the housing trust fund, the Rhode Island housing and mortgage

finance corporation, in its discretion, may allocate up to thirty percent (30%)

of the funds available in any one fiscal year under clause (1) of this

subsection to housing funded under clauses (2) and (3) of this subsection and

up to thirty percent (30%) of the funds available in any one fiscal year under

clause (2) to housing funded under clauses (1) and (3); provided, that any

reallocation of funds under clause (1) of this subsection shall be replaced by

monies allocated to clause (2) of this subsection in the subsequent fiscal year

and any reallocation of funds under clause (2) of this subsection shall be

replaced by monies allocated from clause (1) of this subsection in the

subsequent fiscal year.



   (e) No later than October 1, 1989, the Rhode Island housing

and mortgage finance corporation will set aside and appropriate the sum of five

million dollars ($5,000,000) from its existing housing endowment fund in order

to recapitalize the housing trust fund as provided for in subsection (b).



History of Section.

(P.L. 1988, ch. 617, § 1; P.L. 1989, ch. 296, § 1; P.L. 1990, ch.

431, § 4.)