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 | |
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Introduced By: Senator Jacob Bissaillon | |
Date Introduced: April 16, 2024 | |
Referred To: Senate Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 45-24-46.1 of the General Laws in Chapter 45-24 entitled "Zoning |
2 | Ordinances" is hereby amended to read as follows: |
3 | 45-24-46.1. Inclusionary zoning. [Effective January 1, 2024.] |
4 | (a) A zoning ordinance requiring the inclusion of affordable housing as part of a |
5 | development shall provide that the housing will be affordable housing, as defined in § 42-128- |
6 | 8.1(d)(1); that the affordable housing will constitute not less than twenty-five percent (25%) fifteen |
7 | percent (15%) of the total units in proposed for the development; and that the units will remain |
8 | affordable for a period of not less than thirty (30) years from initial occupancy enforced through a |
9 | land lease and/or deed restriction enforceable by the municipality and the state of Rhode Island. A |
10 | zoning ordinance that requires the inclusion of affordable housing as part of a development shall |
11 | specify the threshold in which the inclusion of affordable housing is required, but in no event shall |
12 | a minimum threshold triggering the inclusion of affordable housing be higher than ten (10) dwelling |
13 | units. The total number of units for the development may include less than fifteen percent (15%) |
14 | affordable units after the density bonus described in subsection (c) of this section is determined. |
15 | (b) A zoning ordinance that includes inclusionary zoning may provide that the affordable |
16 | housing must be built on-site or utilize it may allow for one or more alternative methods of |
17 | production, including, but not limited to: off-site construction or rehabilitation; donation of land |
18 | suitable for development of the required affordable units; and/or the payment of a fee in lieu of the |
19 | construction or provision of affordable housing units. |
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1 | (c) Density bonus, zoning incentives, and municipal subsidies. For all projects subject |
2 | to inclusionary zoning, subject to applicable setback, lot width, or frontage requirements or the |
3 | granting of relief from the same, a municipality shall allow the addition of two (2) one market rate |
4 | units for each affordable unit provided required and the minimum lot area per dwelling unit |
5 | normally required in the applicable zoning district shall be reduced by that amount necessary to |
6 | accommodate the development. Larger density bonuses for the provision of an increased percentage |
7 | of affordable housing in a development may be provided by a municipality in the zoning ordinance. |
8 | The total number of units for the development shall equal the number originally proposed, including |
9 | the required affordable units, plus the additional units that constitute the density bonus. Local |
10 | regulations shall provide for reasonable relief from dimensional requirements to accommodate the |
11 | bonus density under this section. Nothing herein shall prohibit a municipality from providing, or |
12 | an applicant from requesting, additional zoning incentives and/or municipal government subsidies |
13 | as defined in § 45-53-3 to offset differential costs of affordable units. Available zoning incentives |
14 | and municipal government subsidies shall be listed in the zoning ordinance. |
15 | (d) Fee-in-lieu. To the extent a municipality provides an option for the payment of a fee- |
16 | in-lieu of the construction or provision of affordable housing, and an application seeks to utilize |
17 | fee-in-lieu, the use of such fee shall be the choice require the approval of the developer or builder |
18 | planning board and applied on a per-unit basis and may be used for new developments, purchasing |
19 | property and/or homes, rehabilitating properties, or any other manner that creates additional low- |
20 | or moderate-income housing as defined in § 45-53-3(9). |
21 | (1) Eligibility for density bonus. Notwithstanding any other provisions of this chapter, an |
22 | application that utilizes a fee-in-lieu of the construction or provision of affordable housing, off-site |
23 | construction or rehabilitation, or donation of land suitable for development of the required |
24 | affordable units shall not be eligible for the density bonus outlined in this section. |
25 | (2) An application that seeks to utilize a fee-in-lieu of the construction or provision of |
26 | affordable housing must be permitted reviewed by the planning board or commission and is not |
27 | eligible for administrative review under the Rhode Island Land Development and Subdivision |
28 | Review Enabling Act of 1992, codified at §§ 45-23-25 — 45-23-74. In the event that the planning |
29 | board denies the use of fee-in-lieu for an application that is otherwise eligible for administrative |
30 | review, the application shall be returned to the administrative review for the remainder of its review. |
31 | (3) Amount of fee-in-lieu. For affordable single-family homes and condominium units, the |
32 | per-unit fee shall be the difference between the maximum affordable sales price for a family of four |
33 | (4) earning eighty percent (80%) of the area median income as determined annually by the U.S. |
34 | Department of Housing and Urban Development and the average cost of developing a single unit |
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1 | of affordable housing. The average cost of developing a single unit of affordable housing shall be |
2 | determined annually based on the average, per-unit development cost of affordable homes financed |
3 | by Rhode Island housing and mortgage finance corporation (RIHMFC) over the previous three (3) |
4 | years, excluding existing units that received preservation financing. |
5 | (i) Notwithstanding subsection (d)(3) of this section, in no case shall the per-unit fee for |
6 | affordable single family homes and condominium units be less than forty thousand dollars |
7 | ($40,000). |
8 | (4) Use of fee-in-lieu. The municipality shall deposit all in-lieu payments into restricted |
9 | accounts that shall be allocated and spent only for the creation and development of affordable |
10 | housing within the municipality serving individuals or families at or below eighty percent (80%) |
11 | of the area median income. The municipality shall maintain a local affordable housing board to |
12 | oversee the funds in the restricted accounts and shall allocate the funds within three (3) years of |
13 | collection. The municipality shall include in the housing element of their local comprehensive plan |
14 | and shall pass by ordinance, the process it will use to allocate the funds. |
15 | (e) As an alternative to the provisions of subsection (d), the municipality may elect to |
16 | transfer in-lieu payments promptly upon receipt or within the three-year (3) period after receipt. A |
17 | municipality shall transfer all fee-in-lieu payments that are not allocated within three (3) years of |
18 | collection, including funds held as of July 1, 2024, to RIHMFC for the purpose of developing |
19 | affordable housing within that community. |
20 | (f) Both the municipalities and RIHMFC shall report annually with the first report due |
21 | December 31, 2024, to the general assembly, the secretary of housing, and the housing resources |
22 | commission the amount of fees in lieu collected by community, the projects that were provided |
23 | funding with the fees, the dollar amounts allocated to the projects, and the number of units created. |
24 | 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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1 | This act would provide amendments to the requirements of the inclusionary zoning law for |
2 | affordable housing development. |
3 | This act would take effect on January 1, 2025. |
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