Rhode Island SB 2800: AN ACT RELATING TO PROPERTY -- ABANDONED PROPERTY

Bill Text

2026 -- S 2800 SUBSTITUTE A AS AMENDED
========
LC004500/SUB A
========
S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________

A N A C T
RELATING TO PROPERTY -- ABANDONED PROPERTY
Introduced By: Senators Bissaillon, and LaMountain
Date Introduced: March 04, 2026
Referred To: Senate Housing & Municipal Government

It is enacted by the General Assembly as follows:
SECTION 1. Section 34-44-12 of the General Laws in Chapter 34-44 entitled "Abandoned 1
Property" is hereby amended to read as follows: 2
34-44-12. Sale of building and property by receiver. 3
(a) If a receiver appointed pursuant to § 34-44-4 files with the judge in the civil action 4
described in § 34-44-4 a report indicating that the public nuisance has been abated, and if the judge 5
confirms that the receiver has abated the public nuisance, and if the receiver or any interested party 6
requests the judge to enter an order directing the receiver to sell the building and the property on 7
which it is located, then the judge may enter that order after holding a hearing as described in 8
subsection (c). 9
(b)(1) If the abatement of the nuisance has not yet occurred; and 10
(2) If the court approves the abatement plan presented by the receiver or any interested 11
party; and 12
(3) The building at the subject property is unoccupied, then the court may enter an order, 13
upon the receiver’s recommendation, directing the receiver to sell the building and property upon 14
which it is located after holding a hearing as described in subsection (c) of this section. Any sale 15
order and sale deed under this subsection shall include a requirement that the transfer of the property 16
include a reverter if the abatement plan is not completed in accordance with its terms and in the 17
timeframe established in the plan. The abatement of the property by the purchaser shall be at the 18
purchaser’s sole cost and expense. 19

LC004500/SUB A - Page 2 of 6
(c) The receiver or interested party requesting an order as described in subsection (a) or (b) 1
of this section shall cause a notice of the date and time of a hearing on the request to be served on 2
the owner of the building involved and all other interested parties in accordance with § 34-44-3. 3
The judge in the civil action described in § 34-44-3 shall conduct the scheduled hearing. At the 4
hearing, if the owner or any interested party objects to the sale of the building and the property, the 5
burden of proof shall be upon the objecting person to establish, by a preponderance of the evidence, 6
that the benefits of not selling the building and the property outweigh the benefits of selling them. 7
If the judge determines that there is no objecting person, or if the judge determines that there is one 8
or more objecting persons but no objecting person has sustained the burden of proof specified 9
herein, the judge may enter an order directing the receiver to offer the building and the property for 10
sale upon terms and conditions that the judge shall specify, and may further order the removal of 11
any clouds on the title to the building and property by reason of any liens or encumbrances that are 12
inferior to any claims of the receiver, as provided by § 34-44-6(9), or if the receivership action is 13
pending in a court other than the superior court, the judge may order the receiver to petition the 14
superior court to order the removal of any clouds on the title to the building or property. An order 15
by the superior court to remove any cloud on the title to the building and property shall be binding 16
upon all those claiming by, through, under, or by virtue of, any inferior liens or encumbrances. 17
(d) The court may give priority in a sale to any party willing to: 18
(1) Designate and deed restrict the property for low- and moderate-income housing, as 19
defined in § 45-53-3; or 20
(2) Resell the property at least ten percent (10%) below an appraised market value; or 21
(3) Designate any residential units in the property for occupancy through any housing 22
choice voucher program; or 23
(4) Restrict use of the property to owner-occupancy for a period of not less than twenty-24
four (24) months from the date of the issuance of a certificate of occupancy.; or 25
(5) Install an energy storage system, as defined in § 39-33-1, on the property. 26
The waiver of any portion of the delinquent real estate taxes or zoning or minimum housing 27
fines pursuant to subsection (e) of this section may qualify as a municipal subsidy under § 45-53-28
3. 29
(e) If a sale of a building and the property on which it is located is ordered pursuant to 30
subsections (a) — (d) and if the sale occurs in accordance with the terms and conditions specified 31
by the judge in the judge’s order of sale, then the receiver shall distribute the proceeds of the sale 32
and the balance of any funds that the receiver may possess, after the payment of the costs of the 33
sale, in the following orde