2014 -- S 2086

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LC003146

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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: Senators Bates, Hodgson, Archambault, Cool Rumsey, and Sosnowski

     Date Introduced: January 21, 2014

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-24-46.1 of the General Laws in Chapter 45-24 entitled "Zoning

Ordinances" is hereby amended to read as follows:

     45-24-46.1. Inclusionary zoning. – Inclusionary zoning – Affordable housing

requirements – Fees – In – Lieu of construction and provision of affordable housing. – (a) A

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

provide that the housing will be affordable housing, as defined in section 42-128-8.1(d)(1), that

the affordable housing will constitute not less than ten percent (10%) of the total units in the

development, and that the units will remain affordable for a period of not less than thirty (30)

years from initial occupancy enforced through a land lease and/or deed restriction enforceable by

the municipality and the state of Rhode Island.

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

affordable housing must be built on-site or utilize one or more alternative methods of production,

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

development of the required affordable units, and/or the payment of a fee-in-lieu of the

construction or provision of affordable housing units. For projects utilizing any of the alternative

method or methods, the density bonus and all other incentives shall continue to apply.

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

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

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

which creates additional low or moderate income housing as defined in subsection 45-53-3(9).

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

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

percent (80%) of the Area Median Income as determined annually by the U.S. Department of

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

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

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

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

preservation financing.

     (ii) Notwithstanding section (c)(i) above, in no case shall the per-unit fee for affordable

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

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

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

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

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

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

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

the process they will use to allocate the funds.

     (E) As an alternative to the provisions of subsection (d), the municipality may elect to

transfer in-lieu payments promptly upon receipt or within the five (5) year period after receipt to

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

for the purpose of developing affordable housing within that community.

     SECTION 2. This act shall take effect upon passage, and it shall expire on December 31,

2014.

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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 allow inclusionary zoning ordinances to provide that affordable housing

must be built on-site or, in the alternative, be produced off-site, by donation of land and/or by the

payment of a fee-in-lieu of the construction or provision of affordable housing units.

     This act would take effect upon passage, and would expire on December 31, 2014.

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LC003146

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