| Chapter 303 |
| 2023 -- S 1051 SUBSTITUTE A Enacted 06/24/2023 |
| A N A C T |
| RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES |
Introduced By: Senator David P. Tikoian |
| Date Introduced: May 19, 2023 |
| 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%) twenty-five |
| percent (25%) of the total units in the development; and that the units will remain affordable for a |
| period of not less than thirty-years (30) years from initial occupancy enforced through a land lease |
| and/or deed restriction enforceable by the municipality and the state of Rhode Island. A zoning |
| ordinance which that requires the inclusion of affordable housing as part of a development shall |
| specify the threshold in which the inclusion of affordable housing is required, but in no event shall |
| a minimum threshold triggering the inclusion of affordable housing be higher than ten (10) dwelling |
| units. |
| (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. |
| (c) Density bonus, zoning incentives, and municipal subsidies. 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. subject to applicable setback, lot |
| width, or frontage requirements or the granting of relief from the same, a municipality shall allow |
| the addition of two (2) market rate units for each affordable unit provided and the minimum lot |
| area per dwelling unit normally required in the applicable zoning district shall be reduced by that |
| amount necessary to accommodate the development. Larger density bonuses for the provision of |
| an increased percentage of affordable housing in a development may be provided by a municipality |
| in the zoning ordinance. Nothing herein shall prohibit a municipality from providing, or an |
| applicant from requesting, additional zoning incentives and/or municipal government subsidies as |
| defined in § 45-53-3 to offset differential costs of affordable units. Available zoning incentives and |
| municipal government subsidies shall be listed in the zoning ordinance. |
| (c) This (d) Fee-in-lieu. To the extent a municipality provides an option for the payment of |
| a fee-in-lieu of the construction or provision of affordable housing, such 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 that creates additional low- or-moderate- |
| income housing as defined in § 45-53-3(9). |
| (1) Eligibility for density bonus. Notwithstanding any other provisions of this chapter, an |
| application which that utilizes a fee-in-lieu of the construction or provision of affordable housing |
| shall not be eligible for the density bonus outlined in this section. |
| (2) An application which that seeks to utilize a fee-in-lieu of the construction or provision |
| of affordable housing must be permitted by the planning board or commission and is not eligible |
| for administrative review under the Rhode Island Land Development and Subdivision Review |
| Enabling Act of 1992, codified at §§ 45-23-25 - 45-23-74. |
| (3) Amount of fee-in-lieu. 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 and mortgage finance corporation (RIHMFC) over the previous three (3) |
| years, excluding existing units that received preservation financing. |
| (2)(i) Notwithstanding subsection (c)(1) (d)(3) 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)(4) Use of fee-in-lieu. 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 three |
| (3) years of collection. The municipality shall include in the housing element of their local |
| comprehensive plan, if applicable, and shall pass by ordinance, 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) three-(3)year (3) period |
| after receipt. A municipality shall transfer all fee-in-lieu payments which that are not allocated |
| within three (3) years of collection, including funds held as of July 1, 2024, to the housing resources |
| commission or Rhode Island housing RIHMFC for the purpose of developing affordable housing |
| within that community. |
| (f) Rhode Island housing Both the municipalities and RIHMFC shall report annually with |
| the first report due December 31, 2024, to the general assembly, the secretary of housing, 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 on January 1, 2024. |
| ======== |
| LC002507/SUB A |
| ======== |