Grants a right of first offer to qualified nonprofits for the purchase of certain multi-family residential properties at market prices, within a reasonable period of time to promote the creation and preservation of affordable rental housing.
This bill creates the “Community Opportunity to Purchase Act” and gives qualified nonprofit housing organizations a right of first offer to buy certain multi-family residential buildings in Rhode Island before those properties are sold on the open market. The bill applies to privately owned buildings with five or more residential rental units that were constructed more than 20 years ago, and it is intended to help nonprofits acquire properties at market prices within a limited time window so they can preserve or create affordable rental housing.
Under the bill, Rhode Island Housing (RIHMFC) would certify qualified nonprofits on an annual basis and publish a public list of those organizations. Qualified nonprofits must generally be 501(c)(3) organizations with a demonstrated commitment to affordable housing, tenant displacement prevention, community engagement, and the capacity to acquire and manage property; public housing authorities are also included. Rhode Island nonprofits receive priority over out-of-state nonprofits. The right of first offer lasts 60 days, with a possible 90-day extension if the nonprofit pays 0.5% of the asking price, creditable toward purchase if the deal closes.
The bill also places limits on the sale process for covered properties, including a cap on the asking price at no more than 20% above fair market value as determined by a licensed appraiser or realtor, a 10-day response deadline for sellers after receiving an offer, and confidentiality protections for information shared during the process. It excludes several categories of transfers, such as foreclosure-related transfers, bankruptcy transfers, transfers by inheritance or among close family members, government-held property, and properties that are already income restricted and remain so after transfer. It also gives the Department of Housing a 60-day right of first offer for state-owned property, followed by a municipality’s 60-day second offer right before the property can go to the open market.
The bill would amend Title 34 of the Rhode Island General Laws by adding a new chapter governing these rights and obligations, and it would create a new enforcement mechanism requiring sellers to file a sworn declaration with Rhode Island Housing within 15 days after sale. Failure to file the declaration would be an infraction punishable by a fine of up to $5,000. The act would take effect immediately upon passage.
Because there are no committee transcripts or recorded votes provided, the available context shows no formal legislative sentiment or recorded opposition in the materials supplied. The bill’s stated purpose and structure suggest support for affordable-housing preservation and nonprofit acquisition efforts, while potential areas of contention would likely center on the burden on private sellers, the 60- to 90-day delay before sale, the 20% above-market asking-price cap, and the administrative/enforcement requirements imposed on property owners and Rhode Island Housing.
The bill would add a new chapter to Title 34 of the Rhode Island General Laws establishing a statutory right of first offer for qualified nonprofits to purchase certain older multi-family residential buildings, and it would create related certification, notice, publication, pricing, timing, confidentiality, and enforcement rules. It also gives the Department of Housing and municipalities limited first/second offer rights for state-owned property sales. The law would directly affect owners and sellers of covered apartment buildings, qualified nonprofit housing providers, Rhode Island Housing, and state and local government entities involved in property disposition.
No committee discussion or vote history was provided, so there is no recorded legislative sentiment in the supplied materials. Based on the bill text, the measure is framed as a response to Rhode Island’s housing crisis and is clearly designed to support affordable housing preservation, suggesting a pro-housing, pro-nonprofit policy rationale. At the same time, the absence of recorded debate means any support or opposition beyond the bill’s stated purpose is not documented here.
The main likely points of contention are the scope of the nonprofit right of first offer, the delay it creates in property sales, and the limits it places on sellers’ pricing and transaction timing. Property owners and real estate interests may object to the 60-day default period, the possible 90-day extension, the 20% cap above appraised market value, and the reporting requirement with penalties for noncompliance. Supporters are likely to include affordable housing advocates, tenant organizations, and nonprofit housing providers, while concerns may also arise over administrative complexity, confidentiality, and whether the bill could discourage or slow private sales of multifamily housing.