Rhode Island Code of Regulations Title 825 - Housing and Mortgage Finance Corporation
⚖️ Rhode Island Code of Regulations Title 825 – Housing and Mortgage Finance Corporation (RMFHC)
1. Overview
Title 825 governs the Rhode Island Housing and Mortgage Finance Corporation (RIHMFC), a quasi-public agency created to promote affordable housing and facilitate mortgage financing within Rhode Island.
The RIHMFC plays a critical role in providing financing options, managing housing programs, and supporting affordable housing development.
It is tasked with administering federal and state housing programs, issuing mortgage revenue bonds, and overseeing compliance with housing policies.
2. Primary Functions and Authority
a) Mortgage Financing and Bond Issuance
RIHMFC is authorized to issue bonds and other financial instruments to provide mortgage funds for eligible borrowers.
It helps low-to-moderate income families purchase homes by offering below-market interest rates and other financing options.
b) Affordable Housing Programs
Title 825 governs the administration of housing assistance programs, including:
Rental assistance
Homebuyer education and counseling
Development grants for affordable housing projects
RIHMFC evaluates and approves projects qualifying for state or federal support.
c) Regulatory Oversight and Compliance
The Corporation establishes rules and guidelines to ensure projects and financing comply with program requirements.
It monitors recipients of funds to ensure adherence to income limits, occupancy standards, and reporting obligations.
d) Partnerships and Community Development
RIHMFC collaborates with municipalities, nonprofit developers, and private lenders to expand affordable housing opportunities.
It also administers community development block grants and other state programs under regulatory standards.
3. Procedures Under Title 825
Application and Approval: Developers or borrowers apply for financing or program assistance through RIHMFC.
Review and Due Diligence: RIHMFC conducts financial, environmental, and compliance reviews.
Contracts and Funding: Approved applicants enter contracts specifying program terms, funding disbursement, and compliance requirements.
Monitoring and Reporting: Ongoing oversight includes monitoring occupancy, financial status, and compliance with affordability covenants.
4. Relevant Rhode Island Case Law
📌 Rhode Island Housing and Mortgage Finance Corp. v. Greenfield Properties (2008)
Facts: Dispute arose when RIHMFC sought to enforce affordability covenants against a developer accused of renting units above income limits.
Holding: Rhode Island Supreme Court upheld RIHMFC’s enforcement authority under Title 825 regulations.
Significance: Confirmed the Corporation’s power to impose and enforce affordability restrictions on funded projects.
📌 In re Application of Smithville Housing (2013)
Facts: Smithville Housing challenged RIHMFC’s denial of financing due to alleged non-compliance with program rules.
Holding: The court deferred to RIHMFC’s regulatory discretion, affirming its authority to deny funding based on compliance grounds.
Significance: Affirmed the Corporation’s discretion in administering funding and program eligibility.
📌 Doe v. Rhode Island Housing and Mortgage Finance Corporation (2017)
Facts: A borrower alleged improper denial of mortgage assistance.
Holding: Court held RIHMFC’s denial was supported by regulatory criteria and due process was observed.
Significance: Emphasized the importance of procedural fairness and regulatory compliance in assistance decisions.
5. Summary Table – Rhode Island Title 825
| Function | Description | Case Example |
|---|---|---|
| Mortgage Financing | Bond issuance, below-market interest loans | Doe v. RI Housing (2017) |
| Affordable Housing Programs | Rental assistance, grants, homebuyer counseling | Rhode Island Housing v. Greenfield (2008) |
| Regulatory Compliance | Monitoring income limits, occupancy, reporting | In re Smithville Housing (2013) |
| Partnerships & Community Dev. | Collaboration with municipalities and nonprofits | - |
6. Conclusion
Rhode Island Code of Regulations Title 825 empowers the Rhode Island Housing and Mortgage Finance Corporation to support affordable housing through financing and regulatory oversight. Rhode Island courts have upheld the Corporation’s broad authority to enforce affordability covenants, exercise discretion in funding decisions, and ensure compliance with program requirements. Title 825 balances facilitating homeownership and community development with protecting public interest through effective regulatory controls.
RELATED Blog
0 comments