New law establishes housing land bank
Legislation creates program to transform unused properties into affordable housing
STATE HOUSE – Legislation sponsored by Sen. Meghan E. Kallman and Rep. June S. Speakman has been signed into law, creating a land bank within the Rhode Island Housing and Mortgage Finance Corporation to accept property for redevelopment into housing.
June S. Speakman
The new law creates a process that allows the bank to accept, hold, transfer and sell properties, with the goal of transforming vacant property into much-needed affordable housing for Rhode Islanders.
“Rhode Island’s need for affordable housing is immense and immediate, but redevelopment of abandoned and unused properties, unfortunately, tends to be a very slow process,” said Senator Kallman (D-Dist. 15, Pawtucket, Providence). “The idea behind this bill is to create a mechanism and a means to kickstart that process with unused publicly owned parcels, and grow from there. Vacant properties aren’t providing any public benefit, but they could be transformed into solutions for the affordable housing crisis that is affecting every community in our state.”
Said Representative Speakman (D-Dist. 68, Warren, Bristol), who leads the House Commission on Housing Affordability, “Land acquisition can account for almost half the cost of housing, which can make it a serious impediment to the development of homes at a price people can afford. Redeveloping vacant or unused properties that are publicly controlled would reduce that cost, put those properties to good use addressing our housing crisis, reclaim them as vibrant parts of our neighborhoods and in many cases put them back onto the tax rolls of our communities. A land bank will be a very useful tool that could benefit our neighborhoods, municipalities and the many Rhode Islanders who need safe, comfortable housing that they can afford.”
Under the legislation (2025-S 0122A, 2025-H 5955A), the land bank may acquire property by gift, transfer, exchange, foreclosure or purchase from any entity, public or private. The law encourages the acquisition of property that has been foreclosed, tax delinquent, subject to municipal receivership, vacant or abandoned.
Meghan E. Kallman
Land held by the bank can then be donated or sold for housing to be developed and owned by public or nonprofit housing agencies. Revenue from sales of properties would fund the acquisition of more properties.
The bill does not designate any state funding to the land bank, although it does authorize the land bank to accept funding as well as property.
The legislation asks municipalities to conduct a review of real estate assets that are not under current use or planned use, and work with state agencies to determine whether those assets may be considered for development of housing.
The bill was supported by Reclaim RI, Neighbors Welcome! Rhode Island, One Neighborhood Builders, Rhode Island Working Families Power, AARP RI, the Village Common of Rhode Island, International Union of Painters and Allied Trades and Rhode Island AFL-CIO.