Rhode Island’s housing policy landscape is evolving quickly this session, with several proposals that could significantly impact the real estate industry. Legislative hearings are often scheduled with as little as 48 hours’ notice, so members are encouraged to monitor agendas and participate by submitting written or oral testimony through the General Assembly.

Rent Control and Rent Stabilization (Statewide & Providence)

• Caps annual rent increases at 4% and establishes new regulatory frameworks at both the state and local level.
• The Providence proposal creates a Rent Board with authority over rent levels, exemptions, and compliance.
• Limits a landlord’s ability to recover costs for maintenance and capital improvements, which may discourage reinvestment and new housing development.
• State vs. Providence Approach: The state bill sets a uniform standard with limited relief options, while the Providence ordinance is more restrictive and governed by a local Rent Board.
• RIAR Position: Oppose. Policies risk reducing housing supply and discouraging investment in Rhode Island’s rental market.

“Just Cause” Eviction (H8109)

• Requires landlords to provide a legally defined “just cause” before terminating most tenancies.  This would undermine the flexibility of a month-to-month tenancy by allowing tenants to remain indefinitely except for specific reasons, even if the property is sold.
• Restricts the use of no-cause evictions, even where landlords may need flexibility.
• Adds procedural and compliance requirements that may increase complexity in managing rental properties.
• RIAR Position: Oppose. Limits necessary flexibility for landlords and may create unintended operational challenges.

Wholesaling of Real Property (H7840)

• Regulates wholesaling where contracts are assigned for profit without taking title.
• Requires clear disclosures, provides a three-day rescission period, and strengthens consumer protections.
• Clarifies that repeated wholesaling activity may require licensure, promoting accountability and professional standards.
• RIAR Position: Support. Promotes transparency, consumer protection, and a level playing field for licensed professionals.

Lead Registry Reform (H7559)

• Limits the rental registry to properties built before 1978, aligning with lead paint regulations.
• Modifies enforcement provisions that currently restrict evictions for nonpayment when compliance issues exist.
• Reduces publicly available personal information while maintaining access for regulatory enforcement.
• RIAR Position: Support. Improves fairness, aligns with existing law, and addresses practical compliance concerns.

Cesspool Regulations at Property Transfer (H7635)

• Requires inspection and certification of wastewater systems prior to closing and mandates replacement before transfer.
• Applies to all properties and introduces new duties for licensees and closing professionals.
• May delay closings, increase transaction costs, and create barriers to transfer, especially in older or coastal properties.
• RIAR Position: Oppose (as drafted). Amendments are needed to avoid transaction delays and allow practical compliance options such as escrow.

Early Lease Termination for Survivors (H7199)

• Allows tenants experiencing domestic violence or similar circumstances to terminate leases early with reduced liability.
• Tenant can terminate using his/her own self-certified, written statement as an alternative to providing a police report or court filing.
• Raises questions around co-tenant liability and inconsistent statutory definitions, leading to potential legal uncertainty.
• RIAR Position: Oppose (as drafted). Clarification is needed to ensure consistency, prevent misuse, and provide clear guidance for landlords.

Newport Conveyance Tax Proposal (Resiliency Fund)

• Proposes a buyer-paid conveyance fee of up to 5% on certain property sales to fund a dedicated resiliency and sustainability fund.
• Intended to create a predictable funding source for coastal infrastructure, flood mitigation, and climate resilience projects without increasing property taxes.
• Raises concerns regarding housing affordability, transaction costs, and potential impacts on market activity, particularly given existing conveyance tax structure.
• The Newport City Council is considering studying the proposal further.
• RIAR Position: Oppose. Significant concerns regarding cost burden on buyers, market impacts, and the need to explore alternative or more targeted funding mechanisms.

REALTORS®, for more information, contact the RIAR Legal Department at [email protected].