2021 -- S 0475

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LC000546

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO TOWNS AND CITIES -- COASTAL AND RIVERINE HOME PROTECTION

     Introduced By: Senators Euer, and DiMario

     Date Introduced: March 04, 2021

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

amended by adding thereto the following chapter:

CHAPTER 69

COASTAL AND RIVERINE HOME PROTECTION

     45-69-1. Findings.

     (1) It is declared to be a public benefit to encourage the rehabilitation and renovation of

structures in a municipality by increasing their resilience to storm surge, sea level rise and extreme

precipitation.

     (2) Flooding and storm-related erosion is causing problems for land owners on our open

ocean coastline and rivers.

     (3) Rhode Island has a strong coastal resources management program that has historically

been very protective of natural shorelines.

     (4) The coastal resource management council (CRMC), created by chapter 23 of title 46,

is the principal mechanism for management of the state's coastal resources. CRMC's efforts are

essential to secure the rights of the people of Rhode Island to the use and enjoyment of the natural

resources of the state as well as the maintenance of property values located on our shorelines and

rivers and the depreciating effect coastal and riverine flooding has on the property located thereon.

     (5) The special study commission created by resolution No. 392 passed by the house of

representatives at its January session A.D. 2015, and approved June 17, 2015, entitled "House

Resolution Creating the Rhode Island House Commission on Economic Risk Due to Flooding and

Sea Rise" has determined:

     (i) That one of the best ways to prevent property damage due to sea level rise and flooding

is to fortify vulnerable assets;

     (ii) That the state needs to develop an approach and develop a philosophy of resilience;

     (iii) That the state uncover vulnerabilities and understand the economic value at risk using

statistic and probability based models for sea level rise; and

     (iv) That policymakers need to protect homeowners by incentivizing resilience thereby

insuring our assets.

     (6) A tax relief program for coastal and riverine properties subject to storm surge, sea level

rise, riverine flooding and extreme precipitation is needed for sustainability and resiliency,

stabilization of property values and the municipal tax base, as well as community revitalization to

those communities which are determined by CRMC to be in an area likely to be affected by

flooding.

     (7) Or any other adaptation measure by CRMC as being appropriate to reduce damage from

the risks of storm surge, sea level rise and extreme precipitation.

     45-69-2. Definitions.

     (a) As used in this chapter the following words shall have the following meanings:

     (1) "Demolition" means to completely destroy or raze a building in cases in which a

building is so severely damaged that it cannot be elevated, floodproofed, or relocated, or the

building is in such poor condition and not worth the additional investment required to elevate,

floodproof, or relocate. It is not technically feasible or cost effective to elevate or relocate some

types of buildings, such as certain slab-on-grade buildings or masonry-type buildings.

     (2) "Dry floodproofing of residential structures" means a structure is made watertight

below the level that needs flood protection to prevent floodwaters from entering. Making the

structure watertight requires sealing the walls with waterproof coatings, impermeable membranes,

or a supplemental layer of masonry or concrete

     (3) "Levees and floodwalls" means a long, narrow embankment usually built to protect

land from flooding. If built of concrete or masonry the structure is usually referred to as a floodwall.

Levees and floodwalls confine streamflow within a specified area to prevent flooding.

     (4) "Relocation" means moving an entire building to another location on the same lot or to

another lot, usually outside the floodplain. Relocation is a mitigation measure that can offer the

greatest protection from future flooding.

     (5) "Structural elevation" means various techniques used to raise the existing building to

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or above the base flood elevation (BFE). Elevation is a common technique for protecting an existing

building in the special flood hazard area (SFHA).

     (6) "Wet floodproofing" means a design method that allows water to move in the enclosed

parts of a home's lower area, such as the crawlspace or an unoccupied area, and then out when

water recedes.

     (b) In interpreting the definitions listed in subsection (a) of this section to the tax

assessments improvement exemption provided in this chapter, these definitions shall be applied

consistent with the interpretation and meaning contained in the February 27, 2015 edition of the

Hazard Mitigation Assistance Guidance manual published by the Federal Emergency Management

Agency (FEMA), and any subsequent amendments or revisions to the manual, or as otherwise

issued by FEMA, whichever is most current. The National Flood Insurance Program operated by

FEMA may also be utilized for further clarification of these words.

     45-69-3. Coastal and riverine resilience - Tax assessment improvement exemption.

     (a) The various cities and towns may provide by ordinance for an exemption on the

increased assessed value of a property relating to improvements to protect against coastal and

riverine flooding. Such exemption on improvements shall be as determined by the tax assessor after

verification that the property is in an area that the (CRMC) has determined is susceptible to

flooding and which will require or has required rehabilitation or renovation as a result of the damage

caused by, or is at risk of damage from storm surge, sea level rise, riverine flooding and extreme

precipitation, and that such improvements will result in reduced susceptibility to flood damage.

Such coastal and riverine flooding improvement exemption shall apply until the next full

revaluation of property in the city or town. Prior to receiving this exemption the local building

inspector shall inspect and approve the plans to incorporate flood mitigation measures to the

property.

     (b) The tax exemption amount pursuant to this chapter shall be determined by the local tax

assessors and based on the severity of the risk to the property and/or the amount of damage done

to the property which is within an area determined by CRMC to be susceptible to flooding. The

local tax assessors of the various cities and towns shall be authorized to develop a tax exemption

formula for issuing tax exemptions pursuant to this section by assessing the cost of sustainability

and resiliency measures a taxpayer has performed to repair damage, or are necessary to prevent

future damage, and may employ whatever services necessary including, but not limited to, real

estate appraisers, construction professionals, or any other professional in property valuation, in

determining the amount of the tax exemption pursuant to this chapter.

     (c) Tax exemptions allowed pursuant to this chapter shall be allowed for the taxable year

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in which the rehabilitation or renovation occurs.

     (d) If the amount of the tax exemption exceeds the taxpayer's total tax liability for the year

in which the rehabilitation or renovation work occurred, the amount that exceeds the taxpayer's tax

liability may be carried forward for exemption against the taxes imposed for the next full property

evaluation, or until the full exemption is used, whichever occurs first for the tax exemptions.

     (e) The municipality implementing a tax exemption for property located in a coastal or

riverine area shall determine what resilience measures it deems qualifying for tax exemptions

including, but not limited to, the following provisions derived from the Hazard Mitigation

Assistance Unified Guidance publication issued by the Federal Emergency Management Agency

Department of Homeland Security, as defined in § 45-69-2:

     (1) Demolition;

     (2) Dry floodproofing of residential structures;

     (3) Levees and floodwalls;

     (4) Relocation;

     (5) Structural elevation;

     (6) Wet floodproofing;

     (7) Relocation or elevation of utility equipment from a basement that may become flooded;

and

     (8) Any additional measures the Rhode Island emergency management agency believes are

imperative to preserving the coastal or riverine property and residential structures and which are

reasonably expected to achieve their purpose.

     45-69-4. Severability.

     If a court of competent jurisdiction shall adjudge to be invalid or unconstitutional any

clause, sentence, paragraph, section or part of this chapter or the application of it to any person or

circumstance, the adjudication shall not affect, impair, invalidate or nullify the remainder of this

chapter, or the applications of this chapter, which can be given effect without the invalid provision

application, but the effect of the court's adjudication shall be confined to the clause, sentence,

paragraph, or section or part of this chapter, or application of it, which can be given effect without

the invalid provision or application so adjudged to be invalid or unconstitutional.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- COASTAL AND RIVERINE HOME PROTECTION

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     This act would enable cities and towns to provide a tax exemption to individuals who take

resiliency measures to rehabilitate their property because of flood hazards.

     This act would take effect upon passage.

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