Rhode Island 2026 Regular Session

Rhode Island House Bill H8408

Introduced

4/3/26

Refer

4/3/26

Caption

Increases historic tax credit to 30%, and up to 35%, depending on the amount of rental area available for multi-family housing, affordable rental units and units sold as affordable housing.

Impact

The bill significantly affects state laws regarding tax credits associated with historic preservation projects. By adjusting the parameters for tax credits, it seeks to encourage more investors to engage in the rehabilitation of historic structures, ultimately aiming to enhance economic development and job creation in Rhode Island. Consequently, it could lead to an increase in affordable housing availability through the rehabilitation of older buildings into modern living spaces while maintaining their historical significance.

Summary

House Bill 8408 aims to increase the historic tax credit in Rhode Island to 30% for qualified rehabilitation expenditures, and potentially up to 35% under specific conditions. This amendment requires that at least 80% of the total rental area of a certified historic structure must be made available for multi-family housing. If 20% of those rental units are designated as affordable or 10% of the units are sold as affordable housing, the credit can reach the higher percentage. The bill includes provisions that promote the economic revitalization of historical properties by incentivizing their rehabilitation for modern use.

Contention

While the bill has received support for its provisions aimed at historic preservation and affordable housing, some points of contention may arise regarding the definition of 'affordable housing' and the potential impact on existing neighborhoods. Concerns could be raised about gentrification and the displacement of current residents as properties are rehabilitated and potentially converted to more market-rate units, even if they are designated as affordable under the terms of this bill. Additionally, stakeholders may debate the sufficiency of outlined metrics and assessments to ensure that these housing provisions lead to genuinely accessible units.

Companion Bills

No companion bills found.

Previously Filed As

RI S0202

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.

RI S1105

Requires the town of Tiverton to require a minimum number of affordable housing units if there is less than ten percent (10%) of affordable housing in the town.

RI H6215

Requires the town of Tiverton to require a minimum number of affordable housing units if there is less than ten percent (10%) of affordable housing in the town.

RI H5402

Creates business tax credit for, eliminates sale tax on, eliminates income tax on the sale of, and creates a 10 year tax valuation freeze on newly renovated affordable housing.

RI S1011

Amends the definition of affordable housing to create separate categories for housing using private or state financing as opposed to financing from the federal government.

RI H5956

Amends the definition of affordable housing to create separate categories for housing using private or state financing as opposed to financing from the federal government.

RI S0122

Establishes a program operated by the Rhode Island housing and mortgage finance corporation called the "housing land bank" to create affordable housing in RI with the authority to buy, receive, and hold real property for housing development.

RI S0940

Amends sections of law relative to historic tax credits including increasing the maximum project credit and implementing requirements relative to following prevailing wage requirements..

RI H5689

Defines multi-family housing project as over 60 units in municipality with less than 35k residents, also provides for pre-approval conference with local board for review of plan.

RI S0717

Requires that affordable housing would be provided for with some developments.