Rhode Island

Rhode Island’s Affordable Housing Preservation Act (R.I. GEN. LAWS §§ 34-45-1 - 34-45-12) creates purchase rights for tenant associations, the state housing agency, the local housing authority and the local municipality (in that order of priority) in any instance where an owner seeks to terminate assistance or restrictions on certain federally insured or assisted housing. Owners must give a two-year notice of any intent to sell, lease, otherwise dispose of or prepay the mortgage on any covered subsidized property to the tenants association, state housing agency, local PHA and the municipality. For terminations of Section 8 assistance, owners must similarly provide a two-year notice, but only to the state agency, which must then promptly post it in the development and provide it to the tenants association. The offer of sale with detailed terms must be provided at least one year before termination of the Section 8 contract; for a prepayment or sale, the offer must be provided at an unspecified time prior to the conversion event. The price can be no higher than the fair market value, as determined by the average of two independent qualified appraisals, with one appraiser drawn from the state agency’s list.