R.I. Gen. Laws ch. 34-45 § 34-45-7
Opportunity to purchase
Operative Text
No owner shall: (1) Sell, lease, or otherwise dispose of, or prepay any obligation secured by, a federally insured or assisted development in a manner which would result in either: (i) A discontinuance of the use of the development as a federally insured or assisted housing development or a development that was federally insured or assisted within the preceding two year period, or (ii) Cause the termination of any use restrictions which apply to the development, or (2) Record a declaration of condominium, pursuant to chapter 36.1 of this title, with respect to all or any portion of a federally insured or assisted development, or (3) Terminate any contract subject to the provisions of § 34-45-5 of this chapter unless he or she shall have first provided each of the persons and entities listed below an opportunity to purchase the development at a price and upon terms which represent a bona fide offer to sell, in compliance with the provisions of § 34-45-8. The persons and entities to whom such an opportunity to purchase shall be provided are: (i) The tenant association of the development, (ii) The corporation, (iii) The housing authority of the city or town in which the development is located, and (iv) The municipal government of the city or town in which the development is located.
Rhode Island General Laws § 34-45-7 restricts what owners of federally insured or assisted housing developments may do before offering others a chance to buy. Specifically, the provision bars owners from selling, leasing, converting to condominiums, or terminating certain contracts in ways that would end the property's federally assisted status or remove its use restrictions—unless they first extend a genuine purchase opportunity to the tenant association, a designated state corporation, the local housing authority, and the municipal government. This 'right of first opportunity' is designed to keep affordable housing in use and give community stakeholders a meaningful chance to preserve it before any ownership or status change occurs.
Plain English — not legal advice.
Owners of federally insured or assisted developments in Rhode Island should be aware that § 34-45-7 imposes a mandatory pre-sale notification and offer process before taking actions that could end a property's assisted status or convert it to condominiums. A compliant operator generally documents and delivers a bona fide purchase offer—meeting the standards set out in § 34-45-8—to all four designated parties: the tenant association, the state corporation, the local housing authority, and the municipal government. Operators typically maintain records showing that each required party received the opportunity and that the timeline and terms satisfied the statutory requirements before any transaction proceeds.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 34-45-7, tenants living in a federally insured or assisted development have a collective right, through their tenant association, to receive a genuine offer to purchase the property before the owner can proceed with certain transactions that would end its assisted status. If a tenant association believes an owner has bypassed this requirement—by selling, converting, or terminating a contract without providing the required opportunity—residents may consider contacting Rhode Island's relevant housing agencies or a local tenant-rights organization to understand available remedies. Tenants can also explore whether a violation of § 34-45-7 could be raised as a defense or basis for a complaint in any related legal or administrative proceeding.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 15, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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