2013 -- S 0908 SUBSTITUTE A

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LC02507/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TOWNS AND CITIES - ZONING ORDINANCES

     Introduced By: Senators Bates, Hodgson, Sosnowski, E O`Neill, and Cool Rumsey

     Date Introduced: May 02, 2013

     Referred To: Senate Housing & Municipal Government

It is enacted by the General Assembly as follows:

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

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Ordinances" is hereby amended to read as follows:

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     45-24-46.1. Inclusionary zoning. – Inclusionary zoning – Affordable housing

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requirements – Fees – In – Lieu of construction and provision of affordable housing. – (a) A

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zoning ordinance requiring the inclusion of affordable housing as part of a development shall

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provide that the housing will be affordable housing, as defined in section 42-128-8.1(d)(1), that

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the affordable housing will constitute not less than ten percent (10%) of the total units in the

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development, and that the units will remain affordable for a period of not less than thirty (30)

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years from initial occupancy enforced through a land lease and/or deed restriction enforceable by

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the municipality and the state of Rhode Island.

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

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

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

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development of the required affordable units, and/or the payment of a fee-in-lieu of the

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construction or provision of affordable housing units. For projects utilizing any of the alternative

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method or methods, the density bonus and all other incentives shall continue to apply.

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     (c) The fee-in-lieu of the construction or provision of affordable housing shall be the

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choice of the developer or builder applied on a per-unit basis and may be used for new

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developments, purchasing property and/or homes, rehabilitating properties, or any other manner

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in which creates additional low or moderate income housing as defined in 45-53-3(9).

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

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the difference between the maximum affordable sales price for a family of four earning 80% of

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the Area Median Income as determined annually by the U.S. Department of Housing and Urban

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Development and the average cost of developing a single unit of affordable housing. The average

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cost of developing a single unit of affordable housing shall be determined annually based on the

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average per-unit development cost of affordable homes financed by Rhode Island Housing over

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the previous three years, excluding existing units which received preservation financing.

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     (ii) Notwithstanding section (c)(i) above, in no case shall the per-unit fee for affordable

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single family homes and condominium units be less than $40,000.

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      (d) The municipality shall deposit all in-lieu payments into restricted accounts, which

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

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

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

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     funds in the restricted accounts and is encouraged to allocate the funds within five (5) years. The

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municipality shall include in the housing element of their local comprehensive plan, if applicable,

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the process they will use to allocate the funds.

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

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     transfer in-lieu payments promptly upon receipt or within the five (5) year period after receipt to

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     the housing resources commission or Rhode Island housing and mortgage finance corporation for

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     the purpose of developing affordable housing within that community.

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     SECTION 2. This act shall take effect upon passage, and it shall expire on December 31,

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2014.

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LC02507/SUB A

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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 allow inclusionary zoning ordinances to provide that affordable housing

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must be built on-site or, in the alternative, be produced off-site, by donation and/or by the

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payment of a fee-in-lieu of the construction or provision of affordable housing units.

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     This act would take effect upon passage, and would expire on December 31, 2014.

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LC02507/SUB A

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