2012 -- H 7625

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LC01414

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TOWNS AND CITIES - LOW AND MODERATE INCOME HOUSING

     Introduced By: Representative Donald J. Lally

     Date Introduced: February 16, 2012

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. 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. -- The following words, wherever used in this chapter, unless a

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different meaning clearly appears from the context, have the following meanings:

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      (1) "Affordable housing plan" means a component of a housing element, as defined in

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subdivision 45-22.2-4(1), to meet housing needs in a city or town that is prepared in accordance

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with guidelines adopted by the state planning council, and/or to meet the provisions of subsection

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45-53-4(b)(1) and (c).

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      (2) "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 sections 45-

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22.2-8, 45-22.2-9, or 45-22.2-12.

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      (3) "Comprehensive plan" means a comprehensive plan adopted and approved by a city

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or town pursuant to chapters 22.2 and 22.3 of this title.

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      (4) "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 residence 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 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

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year-round housing units, 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.

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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 which 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

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provided in subdivision (2)(i).

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      (5) "Infeasible" means any condition brought about by any single factor or combination

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

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approval of the comprehensive permit, to the extent that it makes it impossible for a public

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agency, nonprofit organization, or limited equity housing cooperative to proceed in building or

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operating low or moderate income housing without financial loss, within the limitations set by the

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subsidizing agency of government, on the size or character of the development, on the amount or

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nature of the subsidy, or on the tenants, rentals, and income permissible, and without substantially

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changing the rent levels and unit sizes proposed by the public agency, nonprofit organization, or

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limited equity housing cooperative.

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      (6) "Letter of eligibility" means a letter issued by the Rhode Island housing and

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

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      (7) "Local board" means any town or city official, zoning board of review, planning

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board or commission, board of appeal or zoning enforcement officer, local conservation

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commission, historic district commission, or other municipal board having supervision of the

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construction of buildings or the power of enforcing land use regulations, such as subdivision, or

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zoning laws.

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      (8) "Local review board" means the planning board as defined by subdivision 45-22.2-

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4(26), or if designated by ordinance as the board to act on comprehensive permits for the town,

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the zoning board of review established pursuant to section 45-24-56.

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      (9) "Low or moderate income housing" means any housing whether built or operated by

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

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

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under any program to assist the construction or rehabilitation of housing affordable to low or

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moderate income households, as defined in the applicable federal or state statute, or local

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ordinance and that will remain affordable through a land lease and/or deed restriction for ninety-

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nine (99) years or such other period that is either agreed to by the applicant and town or

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prescribed by the federal, state, or municipal government subsidy program but that is not less than

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thirty (30) years from initial occupancy. “Low and moderate income housing” also means all

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rental units, including, but not limited to, naturally occurring rental units, not subsidized, in which

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the amount of rent charged for said unit falls within the appropriate amounts as defined by

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applicable federal or state laws relating to low and moderate income housing. The

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aforementioned rental units shall have a lease with a minimum term of twelve (12) months. Low

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and moderate income housing shall also include any rental unit utilizing the H.U.D. section 8

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program and reported to the Rhode Island office of housing and community development on

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January 1 of any given year.

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      (10) "Meeting housing needs" means adoption of the implementation program of an

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approved affordable housing plan and the absence of unreasonable denial of applications that are

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

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expectations of the approved affordable housing plan.

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      (11) "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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section 42-128-8.1(d)(1); such assistance may include, but is not limited to, direct financial

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

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internal subsidies, and any combination of forms of assistance.

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     SECTION 2. This act shall take effect upon passage.

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LC01414

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TOWNS AND CITIES - LOW AND MODERATE INCOME HOUSING

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     This act would expand the definition of “low or moderate income housing” to also mean

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all rental units, not subsidized, in which the amount of rent charged falls within the appropriate

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amounts as defined by applicable federal or state law relating to low and moderate income

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housing.

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     This act would take effect upon passage.

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LC01414

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