2022 -- S 2052 | |
======== | |
LC003432 | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2022 | |
____________ | |
A N A C T | |
RELATING TO TOWNS AND CITIES -- COASTAL AND RIVERINE HOME PROTECTION | |
| |
Introduced By: Senators Euer, and DiPalma | |
Date Introduced: January 25, 2022 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby |
2 | amended by adding thereto the following chapter: |
3 | CHAPTER 70 |
4 | COASTAL AND RIVERINE HOME PROTECTION |
5 | 45-70-1. Findings. |
6 | (1) It is declared to be a public benefit to encourage the rehabilitation and renovation of |
7 | structures in a municipalities by increasing their resilience to storm surge, sea level rise and extreme |
8 | precipitation. |
9 | (2) Flooding and storm-related erosion is causing problems for land owners on our open |
10 | ocean coastline and rivers. |
11 | (3) Rhode Island has a strong coastal resources management program that has historically |
12 | been very protective of natural shorelines. |
13 | (4) The coastal resource management council (CRMC), created by chapter 23 of title 46, |
14 | is the principal mechanism for management of the state's coastal resources. CRMC's efforts are |
15 | essential to secure the rights of the people of Rhode Island to the use and enjoyment of the natural |
16 | resources of the state as well as the maintenance of property values located on our shorelines and |
17 | rivers and the depreciating effect coastal and riverine flooding has on the property located thereon. |
18 | (5) The special study commission created by resolution No. 392 passed by the house of |
19 | representatives at its January session A.D. 2015, and approved June 17, 2015, entitled "House |
| |
1 | Resolution Creating the Rhode Island House Commission on Economic Risk Due to Flooding and |
2 | Sea Rise" has determined: |
3 | (i) That one of the best ways to prevent property damage due to sea level rise and flooding |
4 | is to fortify vulnerable assets; |
5 | (ii) That the state needs to develop an approach and develop a philosophy of resilience; |
6 | (iii) That the state identify vulnerabilities and understand the economic value at risk using |
7 | statistic and probability based models for sea level rise; and |
8 | (iv) That policymakers need to protect homeowners by incentivizing resilience thereby |
9 | insuring our assets. |
10 | (6) A tax relief program for coastal and riverine properties subject to storm surge, sea level |
11 | rise, riverine flooding and extreme precipitation is needed for sustainability and resiliency, |
12 | stabilization of property values and the municipal tax base, as well as community revitalization to |
13 | those communities which are determined by CRMC to be in an area likely to be affected by |
14 | flooding. |
15 | (7) Adaptation measures identified by CRMC and/or the Rhode Island emergency |
16 | management agency may be appropriate to reduce damage from the risks of storm surge, sea level |
17 | rise and extreme precipitation. |
18 | 45-70-2. Definitions. |
19 | (a) As used in this chapter the following words shall have the following meanings: |
20 | (1) "Demolition" means to completely destroy or raze a building in cases in which a |
21 | building is so severely damaged that it cannot be elevated, floodproofed, or relocated, or the |
22 | building is in such poor condition and not worth the additional investment required to elevate, |
23 | floodproof, or relocate. It is not technically feasible or cost effective to elevate or relocate some |
24 | types of buildings, such as certain slab-on-grade buildings or masonry-type buildings. |
25 | (2) "Dry floodproofing of residential structures" means a structure is made watertight |
26 | below the level that needs flood protection to prevent floodwaters from entering. Making the |
27 | structure watertight requires sealing the walls with waterproof coatings, impermeable membranes, |
28 | or a supplemental layer of masonry or concrete |
29 | (3) "Levees and floodwalls" means a long, narrow embankment usually built to protect |
30 | land from flooding. If built of concrete or masonry the structure is usually referred to as a floodwall. |
31 | Levees and floodwalls confine streamflow within a specified area to prevent flooding. |
32 | (4) "Relocation" means moving an entire building to another location on the same lot or to |
33 | another lot, usually outside the floodplain. Relocation is a mitigation measure that can offer the |
34 | greatest protection from future flood damage. |
| LC003432 - Page 2 of 5 |
1 | (5) "Structural elevation" means various techniques used to raise the existing building to |
2 | or above the base flood elevation (BFE). Elevation is a common technique for protecting an existing |
3 | building in the special flood hazard area (SFHA). |
4 | (6) "Wet floodproofing" means a design method that allows water to move in the enclosed |
5 | parts of a home's lower area, such as the crawlspace or an unoccupied area, and then out when |
6 | water recedes. |
7 | (b) In interpreting the definitions listed in subsection (a) of this section to the tax |
8 | assessments improvement exemption provided in this chapter, these definitions shall be applied |
9 | consistent with the interpretation and meaning contained in the February 27, 2015 edition of the |
10 | Hazard Mitigation Assistance Guidance manual published by the Federal Emergency Management |
11 | Agency (FEMA), and any subsequent amendments or revisions to the manual, or as otherwise |
12 | issued by FEMA, whichever is most current. The National Flood Insurance Program operated by |
13 | FEMA may also be utilized for further clarification of these words. |
14 | 45-70-3. Coastal and riverine resilience - Tax assessment improvement exemption. |
15 | (a) The various cities and towns may provide by ordinance for an exemption on the |
16 | increased assessed value of a property relating to improvements to protect against coastal and |
17 | riverine flooding. Such exemption on improvements shall be as determined by the tax assessor after |
18 | verification that the property is in an area that the (CRMC) has determined is susceptible to |
19 | flooding and which will require or has required rehabilitation or renovation as a result of the damage |
20 | caused by, or is at risk of damage from storm surge, sea level rise, riverine flooding and extreme |
21 | precipitation, and that such improvements will result in reduced susceptibility to flood damage. |
22 | Such coastal and riverine flooding improvement exemption shall apply until the next full |
23 | revaluation of property in the city or town. Prior to receiving this exemption the local building |
24 | inspector shall inspect and approve the plans to incorporate flood mitigation measures to the |
25 | property. |
26 | (b) The tax exemption amount pursuant to this chapter shall be determined by the local tax |
27 | assessors and based on the severity of the risk to the property and/or the amount of damage done |
28 | to the property which is within an area determined by CRMC to be susceptible to flooding. The |
29 | local tax assessors of the various cities and towns shall be authorized to develop a tax exemption |
30 | formula for issuing tax exemptions pursuant to this section by assessing the cost of sustainability |
31 | and resiliency measures a taxpayer has performed to repair damage, or are necessary to prevent |
32 | future damage, and may employ whatever services necessary including, but not limited to, real |
33 | estate appraisers, construction professionals, or any other professional in property valuation, in |
34 | determining the amount of the tax exemption pursuant to this chapter. |
| LC003432 - Page 3 of 5 |
1 | (c) Tax exemptions authorized pursuant to this chapter shall be allowed for the taxable year |
2 | in which the rehabilitation or renovation occurs. |
3 | (d) If the amount of the tax exemption exceeds the taxpayer's total tax liability for the year |
4 | in which the rehabilitation or renovation work occurred, the amount that exceeds the taxpayer's tax |
5 | liability may be carried forward for exemption against the taxes imposed for the next full property |
6 | evaluation, or until the full exemption is used, whichever occurs first for the tax exemptions. |
7 | (e) The municipality implementing a tax exemption for property located in a coastal or |
8 | riverine area shall determine what resilience measures it deems qualifying for tax exemptions |
9 | including, but not limited to, measures derived from the Hazard Mitigation Assistance Unified |
10 | Guidance publication issued by the Federal Emergency Management Agency Department of |
11 | Homeland Security, as provided in ยง 45-70-2(b). The approved measures may include, but are not |
12 | limited to: |
13 | (1) Demolition; |
14 | (2) Dry floodproofing of residential structures; |
15 | (3) Levees and floodwalls; |
16 | (4) Relocation; |
17 | (5) Structural elevation; |
18 | (6) Wet floodproofing; |
19 | (7) Relocation or elevation of utility equipment from a basement that may become flooded; |
20 | and |
21 | (8) Any additional measures that CRMC and/or the Rhode Island emergency management |
22 | agency determines are imperative to preserving the coastal or riverine property and residential |
23 | structures and which are reasonably expected to achieve that purpose. |
24 | 45-70-4. Severability. |
25 | If a court of competent jurisdiction shall adjudge to be invalid or unconstitutional any |
26 | clause, sentence, paragraph, section or part of this chapter or the application of it to any person or |
27 | circumstance, the adjudication shall not affect, impair, invalidate or nullify the remainder of this |
28 | chapter, or the applications of this chapter, which can be given effect without the invalid provision |
29 | application, but the effect of the court's adjudication shall be confined to the clause, sentence, |
30 | paragraph, or section or part of this chapter, or application of it, which can be given effect without |
31 | the invalid provision or application so adjudged to be invalid or unconstitutional. |
32 | SECTION 2. This act shall take effect upon passage. |
======== | |
LC003432 | |
======== | |
| LC003432 - Page 4 of 5 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TOWNS AND CITIES -- COASTAL AND RIVERINE HOME PROTECTION | |
*** | |
1 | This act would enable cities and towns to provide a tax exemption to individuals who take |
2 | resiliency measures to rehabilitate their property because of flood hazards. |
3 | This act would take effect upon passage. |
======== | |
LC003432 | |
======== | |
| LC003432 - Page 5 of 5 |