2024 -- S 2993

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LC005872

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING

RESOURCES ACT OF 1998

     

     Introduced By: Senators DiPalma, Ciccone, Britto, Zurier, and F. Lombardi

     Date Introduced: April 16, 2024

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 42-128-8.1 of the General Laws in Chapter 42-128 entitled "Rhode

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Island Housing Resources Act of 1998" is hereby amended to read as follows:

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     42-128-8.1. Housing production and rehabilitation.

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     (a) Short title. This section shall be known and may be cited as the “Comprehensive

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Housing Production and Rehabilitation Act of 2004.”

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     (b) Findings. The general assembly finds and declares that:

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     (1) The state must maintain a comprehensive housing strategy applicable to all cities and

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towns that addresses the housing needs of different populations including, but not limited to,

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workers and their families who earn less than one hundred twenty percent (120%) of median

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income, older citizens, students attending institutions of higher education, low- and very-low

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income individuals and families, and vulnerable populations including, but not limited to, persons

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with disabilities, homeless individuals and families, and individuals released from correctional

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institutions.

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     (2) Efforts and programs to increase the production of housing must be sensitive to the

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distinctive characteristics of cities and towns, neighborhoods, and areas and the need to manage

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growth and to pace and phase development, especially in high-growth areas.

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     (3) The state in partnership with local communities must remove barriers to housing

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development and update and maintain zoning and building regulations to facilitate the construction,

 

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rehabilitation of properties and retrofitting of buildings for use as safe affordable housing.

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     (4) Creative funding mechanisms are needed at the local and state levels that provide

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additional resources for housing development, because there is an inadequate amount of federal

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and state subsidies to support the affordable housing needs of Rhode Island’s current and projected

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population.

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     (5) Innovative community planning tools, including, but not limited to, density bonuses

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and permitted accessory dwelling units, are needed to offset escalating land costs and project

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financing costs that contribute to the overall cost of housing and tend to restrict the development

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and preservation of housing affordable to very-low income, low-income, and moderate-income

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persons.

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     (6) The gap between the annual increase in personal income and the annual increase in the

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median sales price of a single-family home is growing, therefore, the construction, rehabilitation

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and maintenance of affordable, multi-family housing needs to increase to provide more rental

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housing options to individuals and families, especially those who are unable to afford

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homeownership of a single-family home.

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     (7) The state needs to foster the formation of cooperative partnerships between

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communities and institutions of higher education to significantly increase the amount of residential

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housing options for students.

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     (8) The production of housing for older citizens as well as urban populations must keep

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pace with the next twenty-year (20) projected increases in those populations of the state.

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     (9) Efforts must be made to balance the needs of Rhode Island residents with the ability of

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the residents of surrounding states to enter into Rhode Island’s housing market with much higher

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annual incomes at their disposal.

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     (c) Strategic plan. The commission, in conjunction with the statewide planning program,

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shall develop by July 1, 2006, a five-year (5) strategic plan for housing, which plan shall be adopted

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as an element of the state guide plan, and which shall include quantified goals, measurable

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intermediate steps toward the accomplishment of the goals, implementation activities, and

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standards for the production and/or rehabilitation of year-round housing to meet the housing needs

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including, but not limited to, the following:

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     (1) Older Rhode Islanders, including senior citizens, appropriate, affordable housing

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options;

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     (2) Workers, housing affordable at their income level;

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     (3) Students, dormitory, student housing and other residential options;

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     (4) Low-income and very-low income households, rental housing;

 

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     (5) Persons with disabilities, appropriate housing; and

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     (6) Vulnerable individuals and families, permanent housing, single-room occupancy units,

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transitional housing and shelters.

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     (d) As used in this section and for the purposes of the preparation of affordable housing

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plans as specified in chapter 22.2 of title 45, words and terms shall have the meaning set forth in

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chapter 22.2 of title 45, chapter 53 of title 45, and/or § 42-11-10, unless this section provides a

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different meaning or unless the context indicates a different meaning or intent.

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     (1) “Affordable housing” means residential housing that has a sales price or rental amount

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that is within the means of a household that is moderate income or less. In the case of dwelling

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units for sale, housing that is affordable means housing in which principal, interest, taxes, which

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may be adjusted by state and local programs for property tax relief, and insurance constitute no

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more than thirty percent (30%) of the gross household income for a household with less than one

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hundred and twenty percent (120%) of area median income, adjusted for family size. Provided,

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however, that exclusively for the residents of New Shoreham, their affordable housing eligibility

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standards shall include households whose adjusted gross income is less than one hundred forty

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percent (140%) of their residents’ median income, adjusted for family size. In the case of dwelling

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units for rent, housing that is affordable means housing for which the rent, heat, and utilities other

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than telephone constitute no more than thirty percent (30%) of the gross annual household income

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for a household with eighty percent (80%) or less of area median income, adjusted for family size.

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     (i) Affordable housing shall include all types of year-round housing, including, but not

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limited to: manufactured housing; housing originally constructed for workers and their families;

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accessory dwelling units; housing accepting rental vouchers and/or tenant-based certificates under

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Section 8 of the United States Housing Act of 1937, as amended; and assisted living housing, where

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the sales or rental amount of such housing, adjusted for any federal, state, or municipal government

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subsidy, is less than or equal to thirty percent (30%) of the gross household income of the low

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and/or moderate income occupants of the housing.

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     (ii) Mobile and manufactured homes as defined in chapter 44 of title 31 shall also be

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included as affordable housing if such home constitutes a primary residence of the occupant or

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occupants; and such home is located within a community owned by the residents; and such home

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complies with the Manufactured Home Construction and Safety Standards of the United States

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Department of Housing and Urban Development.

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     (i)(iii) In that New Shoreham has reached its ten percent (10%) low- and moderate-income

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housing goal, and for so long as they maintain at least ten percent (10%) of their year-round housing

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stock as low- and moderate-income housing as defined in § 45-53-3(4)(ii), and inasmuch as there

 

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are provable economic impacts related to the municipalities’ substantial offshore location,

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residential housing units produced for sale in which principal, interest, taxes, which may be

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adjusted by state and local programs for property tax relief, and insurance constitute no more than

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thirty percent (30%) of the gross household income for a household with less than one hundred

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forty percent (140%) of the area median income, adjusted for family size, shall be counted towards

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the municipalities’ low- and moderate-income housing inventory as defined in § 45-53-3(9).

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     (2) “Affordable housing plan” means a plan prepared and adopted by a town or city either

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to meet the requirements of chapter 53 of title 45 or to meet the requirements of § 45-22.2-10(f),

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which require that comprehensive plans and the elements thereof be revised to conform with

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amendments to the state guide plan.

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     (3) “Approved affordable housing plan” means an affordable housing plan that has been

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reviewed and approved in accordance with § 45-22.2-9.

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     (4) “Moderate-income household” means a single person, family, or unrelated persons

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living together whose adjusted gross income is more than eighty percent (80%) but less than one

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hundred twenty percent (120%) of the area median income, adjusted for family size.

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     (5) “Seasonal housing” means housing that is intended to be occupied during limited

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portions of the year.

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     (6) “Year-round housing” means housing that is intended to be occupied by people as their

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usual residence and/or vacant units that are intended by their owner for occupancy at all times of

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the year; occupied rooms or suites of rooms in hotels are year-round housing only when occupied

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by permanent residents as their usual place of residence.

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     (e) The strategic plan shall be updated and/or amended as necessary, but not less than once

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every five (5) years.

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     (f) Upon the adoption of the strategic plan as an element of the state guide plan, towns and

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cities shall bring their comprehensive plans into conformity with its requirements, in accordance

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with the timetable set forth in § 45-22.2-10(f); provided, however, that any town that has adopted

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an affordable housing plan in order to comply with the provisions of chapter 53 of title 45, which

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has been approved for consistency pursuant to § 45-22.2-9, shall be deemed to satisfy the

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requirements of the strategic plan for low- and moderate-income housing until such time as the

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town must complete its next required comprehensive community plan update.

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     (g) Guidelines. The commission shall advise the state planning council and the state

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planning council shall promulgate and adopt not later than July 1, 2006, guidelines for higher

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density development, including, but not limited to: (1) Inclusionary zoning provisions for low- and

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moderate-income housing with appropriate density bonuses and other subsidies that make the

 

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development financially feasible; and (2) Mixed-use development that includes residential

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development, which guidelines shall take into account infrastructure availability; soil type and land

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capacity; environmental protection; water supply protection; and agricultural, open space, historical

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preservation, and community development pattern constraints.

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     (h) The statewide planning program shall maintain a geographic information system map

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that identifies, to the extent feasible, areas throughout the state suitable for higher density

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residential development consistent with the guidelines adopted pursuant to subsection (g).

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     SECTION 2. Section 45-53-3 of the General Laws in Chapter 45-53 entitled "Low and

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Moderate Income Housing" is hereby amended to read as follows:

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     45-53-3. Definitions. [Effective January 1, 2024.]

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     The following words, wherever used in this chapter, unless a different meaning clearly

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appears from the context, have the following meanings:

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     (1) “Adjustment(s)” means a request or requests by the applicant to seek relief from the

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literal use and dimensional requirements of the municipal zoning ordinance and/or the design

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standards or requirements of the municipal land development and subdivision regulations. The

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standard for the local review board’s consideration of adjustments is set forth in § 45-53-

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4(d)(2)(iii)(E)(II).

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     (2) “Affordable housing plan” means a component of a housing element, as defined in §

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45-22.2-4(1), that addresses housing needs in a city or town that is prepared in accordance with

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guidelines adopted by the state planning council, and/or to meet the provisions of § 45-53-4(e)(1)

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and (f).

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     (3) “Approved affordable housing plan” means an affordable housing plan that has been

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approved by the director of administration as meeting the guidelines for the local comprehensive

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plan as promulgated by the state planning council; provided, however, that state review and

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approval, for plans submitted by December 31, 2004, shall not be contingent on the city or town

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having completed, adopted, or amended its comprehensive plan as provided for in § 45-22.2-8, §

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45-22.2-9, or § 45-22.2-12.

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     (4) “Comprehensive plan” means a comprehensive plan adopted and approved by a city or

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town pursuant to chapters 22.2 and 22.3 of this title.

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     (5) “Consistent with local needs” means reasonable in view of the state need for low- and

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moderate-income housing, considered with the number of low-income persons in the city or town

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affected and the need to protect the health and safety of the occupants of the proposed housing or

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of the residents of the city or town, to promote better site and building design in relation to the

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surroundings, or to preserve open spaces, and if the local zoning or land use ordinances,

 

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requirements, and regulations are applied as equally as possible to both subsidized and

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unsubsidized housing. Local zoning and land use ordinances, requirements, or regulations are

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consistent with local needs when imposed by a city or town council after a comprehensive hearing

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in a city or town where:

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     (i) Low- or moderate-income housing exists which is: (A) In the case of an urban city or

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town which has at least 5,000 occupied year-round rental units and the units, as reported in the

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latest decennial census of the city or town, comprise twenty-five percent (25%) or more of the year-

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round housing units, and is in excess of fifteen percent (15%) of the total occupied year-round

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rental units; or (B) In the case of all other cities or towns, is in excess of ten percent (10%) of the

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year-round housing units reported in the census. Mobile and/or manufactured homes qualifying as

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affordable housing under the definition of affordable housing in § 42-128-8.1(d), shall each count

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toward one-half percent (0.5%) of year round housing units for purposes of the calculation of low-

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and moderate-income housing units within a city or town, and shall not require a subsidy as a

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requirement to be counted toward the calculation of low- and moderate-income housing units.

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     (ii) The city or town has promulgated zoning or land use ordinances, requirements, and

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regulations to implement a comprehensive plan that has been adopted and approved pursuant to

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chapters 22.2 and 22.3 of this title, and the housing element of the comprehensive plan provides

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for low- and moderate-income housing in excess of either ten percent (10%) of the year-round

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housing units or fifteen percent (15%) of the occupied year-round rental housing units as provided

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in subsection (5)(i).

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     (iii) Multi-family rental units built under a comprehensive permit may be calculated

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towards meeting the requirements of a municipality’s low- or moderate-income housing inventory,

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as long as the units meet and are in compliance with the provisions of § 45-53-3.1.

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     (6) “Infeasible” means any condition brought about by any single factor or combination of

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factors, as a result of limitations imposed on the development by conditions attached to the approval

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of the comprehensive permit, to the extent that it makes it financially or logistically impracticable

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for any applicant to proceed in building or operating low- or moderate-income housing within the

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limitations set by the subsidizing agency of government or local review board, on the size or

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character of the development, on the amount or nature of the subsidy, or on the tenants, rentals, and

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income permissible, and without substantially changing the rent levels and unit sizes proposed by

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the applicant.

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     (7) “Letter of eligibility” means a letter issued by the Rhode Island housing and mortgage

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finance corporation in accordance with § 42-55-5.3(a).

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     (8) “Local review board” means the planning board as defined by § 45-22.2-4.

 

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     (9) “Low- or moderate-income housing” shall be synonymous with “affordable housing”

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as defined in § 42-128-8.1, and further means any housing whether built or operated by any public

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agency or any nonprofit organization or by any limited equity housing cooperative or any private

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developer, that is subsidized by a federal, state, or municipal government subsidy under any

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program to assist the construction or rehabilitation of affordable housing and that will remain

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affordable through a land lease and/or deed restriction for ninety-nine (99) years or such other

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period that is either agreed to by the applicant and town or prescribed by the federal, state, or

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municipal government subsidy program but that is not less than thirty (30) years from initial

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occupancy.

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     (10) “Meeting local housing needs” means as a result of the adoption of the implementation

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program of an approved affordable housing plan, the absence of unreasonable denial of applications

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that are made pursuant to an approved affordable housing plan in order to accomplish the purposes

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and expectations of the approved affordable housing plan, and a showing that at least twenty percent

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(20%) of the total residential units approved by a local review board or any other municipal board

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in a calendar year are for low- and moderate-income housing as defined in § 42-128-8.1.

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     (11) “Monitoring agents” means those monitoring agents appointed by the Rhode Island

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housing resources commission pursuant to § 45-53-3.2 and to provide the monitoring and oversight

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set forth in this chapter, including, but not limited to, §§ 45-53-3.2 and 45-53-4.

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     (12) “Municipal government subsidy” means assistance that is made available through a

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city or town program sufficient to make housing affordable, as affordable housing is defined in §

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42-128-8.1(d)(1); such assistance shall include a combination of, but is not limited to, direct

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financial support, abatement of taxes, waiver of fees and charges, and approval of density bonuses

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and/or internal subsidies, zoning incentives, and adjustments as defined in this section and any

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combination of forms of assistance.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING

RESOURCES ACT OF 1998

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     This act would provide that mobile and manufactured homes be included as affordable

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housing under certain conditions.

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     This act would take effect upon passage.

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