2024 -- S 2999

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LC005868

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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 TOWNS AND CITIES -- ZONING ORDINANCES

     

     Introduced By: Senator Jacob Bissaillon

     Date Introduced: April 16, 2024

     Referred To: Senate Judiciary

     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. [Effective January 1, 2024.]

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     (a) A zoning ordinance requiring the inclusion of affordable housing as part of a

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development shall provide that the housing will be affordable housing, as defined in § 42-128-

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8.1(d)(1); that the affordable housing will constitute not less than twenty-five percent (25%) fifteen

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percent (15%) of the total units in proposed for the development; and that the units will remain

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affordable for a period of not less than thirty (30) years from initial occupancy enforced through a

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land lease and/or deed restriction enforceable by the municipality and the state of Rhode Island. A

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

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specify the threshold in which the inclusion of affordable housing is required, but in no event shall

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a minimum threshold triggering the inclusion of affordable housing be higher than ten (10) dwelling

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units. The total number of units for the development may include less than fifteen percent (15%)

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affordable units after the density bonus described in subsection (c) of this section is determined.

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

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housing must be built on-site or utilize it may allow for one or more alternative methods of

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production, including, but not limited to: off-site construction or rehabilitation; donation of land

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suitable for 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.

 

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     (c) Density bonus, zoning incentives, and municipal subsidies. For all projects subject

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to inclusionary zoning, subject to applicable setback, lot width, or frontage requirements or the

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granting of relief from the same, a municipality shall allow the addition of two (2) one market rate

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units for each affordable unit provided required and the minimum lot area per dwelling unit

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normally required in the applicable zoning district shall be reduced by that amount necessary to

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accommodate the development. Larger density bonuses for the provision of an increased percentage

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of affordable housing in a development may be provided by a municipality in the zoning ordinance.

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The total number of units for the development shall equal the number originally proposed, including

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the required affordable units, plus the additional units that constitute the density bonus. Local

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regulations shall provide for reasonable relief from dimensional requirements to accommodate the

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bonus density under this section. Nothing herein shall prohibit a municipality from providing, or

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an applicant from requesting, additional zoning incentives and/or municipal government subsidies

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as defined in § 45-53-3 to offset differential costs of affordable units. Available zoning incentives

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and municipal government subsidies shall be listed in the zoning ordinance.

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     (d) Fee-in-lieu. To the extent a municipality provides an option for the payment of a fee-

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in-lieu of the construction or provision of affordable housing, and an application seeks to utilize

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fee-in-lieu, the use of such fee shall be the choice require the approval of the developer or builder

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planning board and applied on a per-unit basis and may be used for new developments, purchasing

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property and/or homes, rehabilitating properties, or any other manner that creates additional low-

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or moderate-income housing as defined in § 45-53-3(9).

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     (1) Eligibility for density bonus. Notwithstanding any other provisions of this chapter, an

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application that utilizes a fee-in-lieu of the construction or provision of affordable housing, off-site

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construction or rehabilitation, or donation of land suitable for development of the required

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affordable units shall not be eligible for the density bonus outlined in this section.

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     (2) An application that seeks to utilize a fee-in-lieu of the construction or provision of

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affordable housing must be permitted reviewed by the planning board or commission and is not

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eligible for administrative review under the Rhode Island Land Development and Subdivision

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Review Enabling Act of 1992, codified at §§ 45-23-25 — 45-23-74. In the event that the planning

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board denies the use of fee-in-lieu for an application that is otherwise eligible for administrative

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review, the application shall be returned to the administrative review for the remainder of its review.

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     (3) Amount of fee-in-lieu. For affordable single-family homes and condominium units, the

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per-unit fee shall be the difference between the maximum affordable sales price for a family of four

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(4) earning eighty percent (80%) of the area median income as determined annually by the U.S.

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Department of Housing and Urban Development and the average cost of developing a single unit

 

LC005868 - Page 2 of 4

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of affordable housing. The average cost of developing a single unit of affordable housing shall be

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determined annually based on the average, per-unit development cost of affordable homes financed

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by Rhode Island housing and mortgage finance corporation (RIHMFC) over the previous three (3)

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years, excluding existing units that received preservation financing.

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     (i) Notwithstanding subsection (d)(3) of this section, in no case shall the per-unit fee for

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affordable single family homes and condominium units be less than forty thousand dollars

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($40,000).

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     (4) Use of fee-in-lieu. The municipality shall deposit all in-lieu payments into restricted

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accounts that shall be allocated and spent only for the creation and development of affordable

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housing within the municipality serving individuals or families at or below eighty percent (80%)

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

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oversee the funds in the restricted accounts and shall allocate the funds within three (3) years of

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collection. The municipality shall include in the housing element of their local comprehensive plan

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and shall pass by ordinance, the process it 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 three-year (3) period after receipt. A

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municipality shall transfer all fee-in-lieu payments that are not allocated within three (3) years of

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collection, including funds held as of July 1, 2024, to RIHMFC for the purpose of developing

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affordable housing within that community.

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     (f) Both the municipalities and RIHMFC shall report annually with the first report due

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December 31, 2024, to the general assembly, the secretary of housing, and the housing resources

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commission the amount of fees in lieu collected by community, the projects that were provided

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funding with the fees, the dollar amounts allocated to the projects, and the number of units created.

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     SECTION 2. This act shall take effect on January 1, 2025.

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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 provide amendments to the requirements of the inclusionary zoning law for

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affordable housing development.

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     This act would take effect on January 1, 2025.

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