House committee hears bill to help Gatsby Point homeowners association buy leased land

The House Judiciary Committee on March 25 heard testimony on House Bill 5299, sponsored by Rep. McNamara, which asks Rhode Island Housing and the Infrastructure Bank to study mechanisms to assist qualified homeowners associations to buy leased land that underlies homes.

Supporters told the committee that Gatsby Point is a coastal neighborhood of long-standing, working- and moderate-income households where many families live on land leased from a private owner. Joe Duquette, president of the Gatsby Point Homeowners Association, said the community includes multi‑generation households and called the proposed assistance “a chance to develop some real equity and family wealth.” Kate Brock, a HOA board member, told the committee the association already meets the state’s threshold for a qualified association and described 209 owner‑occupied homes plus an additional 67 rental units on roughly 200 acres of leased land.

Brock and other residents said the General Assembly previously authorized a right of first refusal for qualified associations — a procedural right to match an offer if the land owner sells — but that the short statutory time frame and the associations’ limited legal and financial capacity make it difficult to prepare a competitive purchase. The bill would task public agencies with researching financing and technical assistance so associations could be ready if land is offered for sale.

Several residents testified they renovated homes and invested substantial personal funds to remain in Gatsby Point and said they want to preserve the neighborhood’s affordability and continuity. Witnesses noted that some comparable actions — for example, state assistance to Blueberry Heights in West Greenwich — had precedent when the governor asked Rhode Island Housing to assist in a purchase.

Committee members asked practical questions about parcel size, appraisals and whether the association had the necessary majority to qualify. Witnesses said the association does meet the membership threshold and can provide acreage and appraisal information to the committee on request. No formal action was taken on the bill during the hearing; it was being held for further study along with the other bills on the evening’s calendar.

Why it matters: Supporters said the bill gives homeowners on leased land a pathway to preserve affordable housing stock and prevent displacement by outside buyers. The committee was told the measure is about preparing so associations can act if and when the private owner sells.