| Chapter 295 |
| 2024 -- S 2999 SUBSTITUTE A Enacted 06/25/2024 |
| A N A C T |
| RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES |
Introduced By: Senator Jacob Bissaillon |
| Date Introduced: April 16, 2024 |
| 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. [Effective January 1, 2024.] |
| (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 twenty-five percent (25%) fifteen |
| percent (15%) of the total units in proposed for 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. A |
| zoning ordinance 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. The total number of units for the development may include less than fifteen percent (15%) |
| affordable units after the density bonus described in subsection (c) of this section is determined. |
| (b) A zoning ordinance that includes inclusionary zoning may provide that the affordable |
| housing must be built on-site or utilize it may allow for 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, 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) one market rate |
| units unit for each affordable unit provided required 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. |
| The total number of units for the development shall equal the number originally proposed, including |
| the required affordable units, plus the additional units that constitute the density bonus. Local |
| regulations shall provide for reasonable relief from dimensional requirements to accommodate the |
| bonus density under this section. Nothing herein shall prohibit a A municipality from providing, or |
| an applicant from requesting, shall provide, and an applicant may request, 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 |
| may be listed in the zoning ordinance, but shall not be an exclusive list. |
| (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, and an application seeks to utilize |
| fee-in-lieu, the use of such fee 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 that utilizes a fee-in-lieu of the construction or provision of affordable housing, off-site |
| construction or rehabilitation, or donation of land suitable for development of the required |
| affordable units shall not be eligible for the density bonus outlined in this section. |
| (2) An application that seeks to utilize a fee-in-lieu of the construction or provision of |
| affordable housing must be permitted reviewed 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. |
| (i) Notwithstanding subsection (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). |
| (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 three (3) years of |
| collection. The municipality shall include in the housing element of their local comprehensive plan |
| 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 three-year (3) period after receipt. A |
| municipality shall transfer all fee-in-lieu payments that are not allocated within three (3) years of |
| collection, including funds held as of July 1, 2024, to RIHMFC for the purpose of developing |
| affordable housing within that community. |
| (f) 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, 2025. |
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| LC005868/SUB A |
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