2024 -- S 2993 AS AMENDED

========

LC005872

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

____________

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:

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

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

     42-128-8.1. Housing production and rehabilitation.

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

Housing Production and Rehabilitation Act of 2004.”

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

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

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

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

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

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

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

institutions.

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

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

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

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

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

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

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

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

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

population.

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

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

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

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

persons.

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

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

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

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

homeownership of a single-family home.

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

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

housing options for students.

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

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

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

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

annual incomes at their disposal.

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

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

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

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

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

including, but not limited to, the following:

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

options;

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

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

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

LC005872 - Page 2 of 9

     (5) Persons with disabilities, appropriate housing; and

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

transitional housing and shelters.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

and/or moderate income occupants of the housing.

     (ii) Mobile and manufactured homes shall be included as affordable housing if such home

constitutes a primary residence of the occupant or occupants; and such home is located within a

community owned by the residents or the land containing the home is owned by the occupant or

occupants; and such home was constructed after June 15, 1976; and such home complies with the

Manufactured Home Construction and Safety Standards of the United States Department of

Housing and Urban Development.

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

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

LC005872 - Page 3 of 9

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

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

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

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

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

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

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

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

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

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

amendments to the state guide plan.

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

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

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

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

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

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

portions of the year.

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

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

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

by permanent residents as their usual place of residence.

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

every five (5) years.

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

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

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

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

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

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

town must complete its next required comprehensive community plan update.

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

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

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

LC005872 - Page 4 of 9

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

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

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

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

preservation, and community development pattern constraints.

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

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

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

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

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

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

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

appears from the context, have the following meanings:

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

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

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

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

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

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

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

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

and (f).

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

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

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

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

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

45-22.2-9, or § 45-22.2-12.

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

town pursuant to chapters 22.2 and 22.3 of this title.

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

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

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

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

LC005872 - Page 5 of 9

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

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

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

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

in a city or town where:

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

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

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

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

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

year-round housing units reported in the census.

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

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

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

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

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

in subsection (5)(i).

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

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

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

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

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

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

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

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

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

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

the applicant.

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

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

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

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

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

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

LC005872 - Page 6 of 9

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

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

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

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

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

occupancy.

     (i) Any housing unit which qualifies under this subsection and under §42-128-8.1 shall be

counted as one whole unit toward the municipality’s requirement for low-or-moderate income

housing.

     (ii) Any mobile or manufactured home(s) which meet the requirements of § 42-128-

8.1(d)(1)(ii) but are not subsidized by a federal, state, or municipal government subsidy and/or do

not have a deed restriction or land lease as described in this subsection, shall count as one-half (1/2)

of one unit for the purpose of the calculation of the total of low-or-moderate income year-round

housing within a city or town, as long as a municipality contracts with a monitoring agent to verify

that the requirements of § 42-128-8.1(d)(1)(ii) are met for these units. Such units shall not be

required to meet the income verification requirements of § 42-128-8.1. The monitoring agent shall

provide a listing of the eligible units to Rhode Island Housing, who shall provide a report as to the

qualifying mobile or manufactured homes under this subsection to the governor, speaker of the

house of representatives, senate president and secretary of housing on an annual basis, beginning

on or before December 31, 2025.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LC005872 - Page 7 of 9

combination of forms of assistance.

     SECTION 3. This act shall take effect upon passage.

========

LC005872

========

LC005872 - Page 8 of 9

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING

RESOURCES ACT OF 1998

***

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

housing under certain conditions.

     This act would take effect upon passage.

========

LC005872

========

LC005872 - Page 9 of 9