2022 -- S 2644

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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 Lawson, and Coyne

     Date Introduced: March 10, 2022

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

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

Ordinances" is hereby amended to read as follows:

     45-24-46.1. Inclusionary zoning.

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

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

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

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

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

enforceable by the municipality and the state of Rhode Island.

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

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

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

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

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

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

of below-market units.

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

of the developer or builder municipality in which the development occurs applied on a per-unit

basis and may be used for new developments, purchasing property and/or homes, rehabilitating

properties, or any other manner that creates additional low-or-moderate income housing as defined

in § 45-53-3(9).

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

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

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

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

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

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

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

financing.

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

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

($40,000).

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

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

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

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

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

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

use to allocate the funds.

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

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

the housing resources commission or Rhode Island housing for the purpose of developing

affordable housing within that community.

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

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

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

     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 amend the current law so that the choice to pay a fee in lieu of construction

or provision of affordable housing, would no longer be left to the discretion of the developer but

would instead be determined by the city or town where the development is located.

     This act would take effect upon passage.

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