2014 -- H 7632

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LC004662

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES

     

     Introduced By: Representatives Shekarchi, McNamara, Gallison, Lombardi, and Lima

     Date Introduced: February 26, 2014

     Referred To: House Municipal Government

     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 Inclusionary zoning -- Affordable housing

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requirements – Fees-in-lieu of construction and provision of affordable housing. – (a) A

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zoning ordinance requiring that has the option for the inclusion of affordable housing as part of a

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development ("inclusionary zoning") shall provide that the housing will be affordable housing, as

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defined in section 42-128-8.1(d)(1), will be created and that the affordable housing will constitute

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not less than ten percent (10%) of the total units in the development, and that the units will

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

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through a land lease and/or deed restriction enforceable by the municipality and the state of

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Rhode Island.

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     (b) A zoning ordinance which contains such inclusionary zoning must provide that the

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inclusionary zoning is not mandatory but rather a voluntary option for the applicant as part of the

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proposed development. If the applicant chooses to build affordable housing units, whether

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directed by the municipality to be located on or off the subject development site, then the

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municipality must provide to the applicant incentives such as density bonuses of market rate

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and/or affordable housing, or subsidies for the cost of the building/rehabilitation of each

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affordable unit. Additionally a municipality may allow a fee-in-lieu of the construction or

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provision of affordable housing within said municipality, however, the choice of said fee-in-lieu

 

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shall belong solely to the applicant and only after the applicant chooses to be subject to

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inclusionary zoning for the proposed development. All development incentives and subsidies

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available in the municipality for the construction or provision of affordable housing shall also

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apply to the fee-in-lieu option.

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     (c) This fee-in-lieu of the construction provision of affordable housing shall be applied on

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a per-unit basis and may be used for new developments, purchasing property and/or homes,

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rehabilitating properties, or any other manner which creates additional low or moderate income

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housing as defined in § 45-53-3(9):

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     (1) For affordable single family homes and condominium units, the per-unit fee shall be

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the difference between the maximum affordable sales price for a family of four (4) earning eighty

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

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

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

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annually based on the average per-unit development cost of affordable homes financed by Rhode

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Island Housing over the previous three (3) years, excluding existing units which received

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preservation financing.

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     (2) Notwithstanding subsection (c)(1), in no case shall the per-unit fee for affordable

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single family homes and condominium units be less than forty thousand dollars ($40,000).

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     (d) The municipality shall deposit all in-lieu payments into restricted accounts, which

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shall be allocated and spent only for the creation and development of affordable housing within

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the municipality serving individuals or families at or below eighty percent (80%) of the area

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

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funds in the restricted accounts and is encouraged to allocate the funds within five (5) years. The

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municipality shall include in the housing element of its local comprehensive plan, if applicable,

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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 five (5) year period after receipt to the

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housing resources commission or Rhode Island housing and mortgage finance corporation for the

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purpose of developing affordable housing within that community.

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     SECTION 2. This act shall take effect upon passage.

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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 that zoning ordinances that contain inclusionary zoning must

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provide incentives to developers who build affordable housing or would allow a developer to pay

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a fee-in-lieu of constructing the affordable housing. It would be the developer's choice as to

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whether to construct affordable housing or pay a fee-in-lieu of construction of the affordable

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housing. Further, this would set forth what a municipality is to do with fees paid in lieu of

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construction.

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     This act would take effect upon passage.

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