Chapter 395
2014 -- H 7632 SUBSTITUTE A AS AMENDED
Enacted 07/02/14
RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES
Introduced By: Representatives Shekarchi, McNamara, Gallison, Lombardi, and Lima
Date Introduced: February 26, 2014
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 section §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 (30) years 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 which 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 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
fee in lieu of the construction or provision of affordable housing shall be the
choice of the developer or builder applied on a per-unit basis and may be used
for new developments, purchasing property and/or homes, rehabilitating
properties, or any other manner which 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 which 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,
which 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 they 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-(2)
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 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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LC004662/SUB A
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