Directs RIHousing to work with stakeholders to investigate and determine ways to assist an incorporated homeowners' association to exercise rights to purchase leased land.
Summary
H5299 amends Rhode Island’s leased-land dwelling law to strengthen and clarify the rights of incorporated homeowners’ associations when the land beneath their homes is being sold or leased for a use that would end the existing tenancy. The bill expands the statutory framework for a right of first refusal by requiring landowners to notify qualifying homeowners’ associations of bona fide offers, setting out the information that must be included in the notice, and giving the association 180 days to match the offer’s price and terms. It also requires landowners to disclose the association’s right of first refusal in purchase and sale or lease agreements, and it requires the association to record its articles of incorporation and statutory rights in the land evidence records.
Impact
The bill would amend sections 34-18.2-2 and 34-18.2-3 of the General Laws governing leased land dwellings. It adds a definition of “Corporation” as RIHousing and directs RIHousing to work with the Department of Housing, the Infrastructure Bank, and other public and private entities to identify barriers and recommend ways to help incorporated homeowners’ associations acquire leased land. The bill also adds procedural protections, including limits on rent increases during the notice period, a requirement to file an affidavit of compliance if the association does not buy or lease the land, and a good-faith-and-fair-dealing covenant in these tenancies. These changes primarily affect landowners, homeowners on leased land, incorporated homeowners’ associations, and RIHousing.
Sentiment
The bill appears to have been received favorably, with no recorded opposition in the available voting history. It passed the House on June 12, 2025 by a unanimous 69-0 vote, suggesting broad support for the policy goal of helping resident homeowners preserve control over leased-land communities and avoid displacement.
Contention
No committee testimony was provided, and the vote record shows no direct controversy. The main policy issue implicit in the bill is the balance between protecting homeowners’ associations and preserving landowners’ flexibility to sell or lease property. The bill addresses that balance by preserving the owner’s ability to accept bona fide offers while requiring notice, matching rights, and compliance procedures, and by stating that the association may not vary the offer’s terms or force financing from the owner.