2014 -- H 7632 SUBSTITUTE A AS AMENDED

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LC004662/SUB A

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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. - (a) A zoning ordinance requiring the inclusion of

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affordable housing as part of a development shall provide that the housing will be affordable

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housing, as defined in section §42-128-8.1(d)(1),; that the affordable housing will constitute not

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less than ten percent (10%) of the total units in 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.

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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 one or more alternative methods of production, including,

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but not limited to, off-site construction or rehabilitation, donation of land suitable for

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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. For all projects subject to inclusionary

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zoning, density bonuses and other incentives shall be established by the community and shall

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apply to offset differential costs of below-market units.

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     (c) This fee in lieu of the construction or provision of affordable housing shall be the

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choice of the developer or builder applied on a per-unit basis and may be used for new

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developments, purchasing property and/or homes, rehabilitating properties, or any other manner

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that creates additional low- or moderate-income 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 that received

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preservation financing.

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     (2) Notwithstanding subsection (c)(1) 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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     (d) The municipality shall deposit all in-lieu payments into restricted accounts that shall

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

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

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

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the restricted accounts and shall allocate the funds within two (2) years. The municipality shall

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include in the housing element of their local comprehensive plan, if applicable, the process it will

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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 two-year (2) period after receipt to

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the housing resources commission or Rhode Island housing for the purpose of developing

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affordable housing within that community.

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     (f) Rhode Island housing shall report to the general assembly 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

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created.

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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 may or

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require developers to build affordable housing on-site or would allow a developer to pay a fee-in-

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lieu of constructing the affordable housing. It would be the developer's choice as to whether to

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

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

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     This act would take effect upon passage.

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