2022 -- S 2008

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LC003214

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES

     

     Introduced By: Senators Kallman, Euer, Valverde, Lawson, DiMario, DiPalma, and
Zurier

     Date Introduced: January 06, 2022

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 45-24-46.1 of the General Laws in Chapter 45-24 entitled "Zoning

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Ordinances" is hereby amended to read as follows:

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     45-24-46.1. Inclusionary zoning.

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     (a) A zoning ordinance requiring the inclusion of affordable housing as part of a

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development shall provide that the housing will be affordable housing, as defined in § 42-128-

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8.1(d)(1); that the affordable housing will constitute not less than ten percent (10%) of the total

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units in the development; and that the units will remain affordable for a period of not less than

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thirty-years (30) from initial occupancy enforced through a land lease and/or deed restriction

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enforceable by the municipality and the state of Rhode Island.

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     (b) A zoning ordinance that includes inclusionary zoning may provide that the affordable

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housing must be built on-site or utilize one or more alternative methods of production, including,

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but not limited to, off-site construction or rehabilitation, donation of land suitable for development

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of the required affordable units, and/or the payment of a fee in lieu of the construction or provision

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of affordable housing units. For all projects subject to inclusionary zoning, density bonuses and

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other incentives shall be established by the community and shall apply to offset differential costs

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of below-market units.

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     (c) This fee in lieu of the construction or provision of affordable housing shall be the choice

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of the developer or builder applied on a per-unit basis and may be used for new developments,

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purchasing property and/or homes, rehabilitating properties, or any other manner that creates

 

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additional low-or-moderate income housing as defined in § 45-53-3(9).

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     (1) For affordable single-family homes and condominium units, the per-unit fee shall be

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the difference between the maximum affordable sales price for a family of four (4) earning eighty

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percent (80%) of the area median income as determined annually by the U.S. Department of

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Housing and Urban Development and the average cost of developing a single unit of affordable

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housing. The average cost of developing a single unit of affordable housing shall be determined

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annually based on the average, per-unit development cost of affordable homes financed by Rhode

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Island housing over the previous three (3) years, excluding existing units that received preservation

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financing.

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     (2) Notwithstanding subsection (c)(1) of this section, in no case shall the per-unit fee for

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affordable single family homes and condominium units be less than forty thousand dollars

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($40,000) seventy-five thousand dollars ($75,000).

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     (d) The municipality shall deposit all in-lieu payments into restricted accounts that shall be

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allocated and spent only for the creation and development of affordable housing within the

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municipality serving individuals or families at or below eighty percent (80%) of the area median

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income. The municipality shall maintain a local affordable housing board to oversee the funds in

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the restricted accounts and shall allocate the funds within two (2) ten (10) years. The municipality

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shall include in the housing element of their local comprehensive plan, if applicable, the process it

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will use to allocate the funds.

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     (e) As an alternative to the provisions of subsection (d), the municipality may elect to

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transfer in-lieu payments promptly upon receipt or within the two-year (2) ten-year (10) period

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after receipt to the housing resources commission or Rhode Island housing for the purpose of

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developing affordable housing within that community.

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     (f) Rhode Island housing shall report to the general assembly and the housing resources

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commission the amount of fees in lieu collected by community; the projects that were provided

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funding with the fees, the dollar amounts allocated to the projects and the number of units created.

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     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 -- ZONING ORDINANCES

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     This act would increase the per-unit fee for affordable single family homes to seventy-five

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thousand dollars ($75,000) and allow municipalities to transfer in-lieu payments upon receipt or

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within ten (10) years.

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     This act would take effect upon passage.

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