2016 -- H 7985

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LC005483

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TOWNS AND CITIES - LOW AND MODERATE INCOME HOUSING

     Introduced By: Representatives Morin, Casey, Carson, Phillips, and Maldonado

     Date Introduced: March 23, 2016

     Referred To: House Finance

     (by request)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-53-3 of the General Laws in Chapter 45-53 entitled "Low and

Moderate Income Housing" is hereby amended to read as follows:

     45-53-3. Definitions. -- The following words, wherever used in this chapter, unless a

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

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

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

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

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

      (2) "Approved affordable housing plan" means an affordable housing plan that has been

approved by the director of administration as meeting the guidelines for the local comprehensive

plan as promulgated by the state planning council; provided, however, that state review and

approval, for plans submitted by December 31, 2004, shall not be contingent on the city or town

having completed, adopted, or amended its comprehensive plan as provided for in sections 45-

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

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

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

      (4) "Consistent with local needs" means reasonable in view of the state need for low and

moderate income housing, considered with the number of low income persons in the city or town

affected and the need to protect the health and safety of the occupants of the proposed housing or

of the residence of the city or town, to promote better site and building design in relation to the

surroundings, or to preserve open spaces, and if the local zoning or land use ordinances,

requirements, and regulations are applied as equally as possible to both subsidized and

unsubsidized housing. Local zoning and land use ordinances, requirements, or regulations are

consistent with local needs when imposed by a city or town council after comprehensive hearing

in a city or town where:

      (i) Low or moderate income housing exists which is: (A) in the case of an urban city or

town which has at least 5,000 occupied year-round rental units and the units, as reported in the

latest decennial census of the city or town, comprise twenty-five percent (25%) or more of the

year-round housing units, is in excess of fifteen percent (15%) of the total occupied year-round

rental units; or (B) in the case of all other cities or towns, is in excess of ten percent (10%) of the

year-round housing units reported in the census.

      (ii) The city or town has promulgated zoning or land use ordinances, requirements, and

regulations to implement a comprehensive plan which has been adopted and approved pursuant to

chapters 22.2 and 22.3 of this title, and the housing element of the comprehensive plan provides

for low and moderate income housing in excess of either ten percent (10%) of the year-round

housing units or fifteen percent (15%) of the occupied year-round rental housing units as

provided in subdivision (2)(i).

     (5) "Credit unit(s)" means a unit or units of low-income or subsidized housing which

exists in a community that exceeds its required percentage of low-income/affordable housing

which can be transferred, or sold to a community which does not meet its ten percent (10%) goal

of low-income/affordable housing as established by this section.

     (6) "Host community" means a community having in excess of the ten percent (10%) of

the year round low or moderate income housing units required by this chapter.

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

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

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

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

building or operating low or moderate income housing without financial loss, within the

limitations set by the subsidizing agency of government, on the size or character of the

development, on the amount or nature of the subsidy, or on the tenants, rentals, and income

permissible, and without substantially changing the rent levels and unit sizes proposed by the

public agency, nonprofit organization, or limited equity housing cooperative.

      (6)(8) "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).

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

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

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

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

zoning laws.

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

22.2-4(26), or if designated by ordinance as the board to act on comprehensive permits for the

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

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

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

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

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

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

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

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

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

thirty (30) years from initial occupancy.

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

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

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

expectations of the approved affordable housing plan.

      (11)(13) "Municipal government subsidy" means assistance that is made available

through a city or town program sufficient to make housing affordable, as affordable housing is

defined in § 42-128-8.1(d)(1); such assistance may include, but is not limited to, direct financial

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

internal subsidies, and any combination of forms of assistance.

     (14) "Recipient community" means a community having less that its required ten percent

(10%) of low or moderate income housing.

     SECTION 2. Chapter 45-53 of the General Laws entitled "Low and Moderate Income

Housing" is hereby amended by adding thereto the following sections:

     45-53-3.1. Penalty. – Any city or town that fails to obtain the minimum amount of low

and moderate housing rental units as required by §45-53-3 shall be fined yearly, two thousand

dollars ($2,000) for each unit that is short of its required minimum. Provided, a municipality may

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also meet its low and moderate housing requirements by purchasing credits pursuant to §45-53-

3.2.

     45-53-3.2. Yearly purchase of credit for affordable housing units. – Any host

community may yearly sell any of its excess low and moderate credit housing units to a recipient

community for not less than one thousand dollars ($1,000) per unit.

     SECTION 3. This act shall take effect on January 1, 2018.

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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

***

     This act would encourage those cities and towns that have failed to meet their low and

moderate housing unit minimum goals to meet those goals and would establish penalties for

failing to meet those goals. It would also allow those municipalities that have met their goal, to

sell their excess housing unit credits to under-performing affordable housing unit communities.

     This act would take effect on January 1, 2018.

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