2020 -- S 2350

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LC003637

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO TOWNS AND CITIES -- COASTAL AND RIVERINE HOME PROTECTION

     

     Introduced By: Senators Euer, McCaffrey, Lynch Prata, Valverde, and Goldin

     Date Introduced: February 13, 2020

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

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amended by adding thereto the following chapter:

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CHAPTER 69

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COASTAL AND RIVERINE HOME PROTECTION

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     45-69-1. Findings.

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     (1) It is declared to be a public benefit to encourage the rehabilitation and renovation of

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structures in a municipality by increasing their resilience to storm surge, sea level rise and

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extreme precipitation.

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     (2) Flooding and storm-related erosion is causing problems for land owners on our open

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ocean coastline and rivers.

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     (3) Rhode Island has a strong coastal resources management program that has historically

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been very protective of natural shorelines.

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     (4) The coastal resource management council (CRMC), created by chapter 23 of title 46,

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is the principal mechanism for management of the state's coastal resources. CRMC's efforts are

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essential to secure the rights of the people of Rhode Island to the use and enjoyment of the natural

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resources of the state as well as the maintenance of property values located on our shorelines and

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rivers and the depreciating effect coastal and riverine flooding has on the property located

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thereon.

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     (5) The special study commission created by resolution No. 392 passed by the house of

 

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representatives at its January session A.D. 2015, and approved June 17, 2015, entitled "House

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Resolution Creating the Rhode Island House Commission on Economic Risk Due to Flooding

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and Sea Rise" has determined:

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     (i) That one of the best ways to prevent property damage due to sea level rise and

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flooding is to fortify vulnerable assets;

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     (ii) That the state needs to develop an approach and develop a philosophy of resilience;

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     (iii) That the state uncover vulnerabilities and understand the economic value at risk

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using statistic and probability based models for sea level rise; and

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     (iv) That policymakers need to protect homeowners by incentivizing resilience thereby

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insuring our assets.

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     (6) A tax relief program for coastal and riverine properties subject to storm surge, sea

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level rise, riverine flooding and extreme precipitation is needed for sustainability and resiliency,

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stabilization of property values and the municipal tax base, as well as community revitalization to

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those communities which are determined by CRMC to be in an area likely to be affected by

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flooding.

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     (7) Or any other adaptation measure by CRMC as being appropriate to reduce damage

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from the risks of storm surge, sea level rise and extreme precipitation.

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     45-69-2. Definitions.

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     (a) As used in this chapter the following words shall have the following meanings:

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     (1) "Demolition" means to completely destroy or raze a building in cases in which a

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building is so severely damaged that it cannot be elevated, floodproofed, or relocated, or the

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building is in such poor condition and not worth the additional investment required to elevate,

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floodproof, or relocate. It is not technically feasible or cost effective to elevate or relocate some

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types of buildings, such as certain slab-on-grade buildings or masonry-type buildings.

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     (2) "Dry floodproofing of residential structures" means a structure is made watertight

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below the level that needs flood protection to prevent floodwaters from entering. Making the

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structure watertight requires sealing the walls with waterproof coatings, impermeable membranes,

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or a supplemental layer of masonry or concrete

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     (3) "Levees and floodwalls" means a long, narrow embankment usually built to protect

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land from flooding. If built of concrete or masonry the structure is usually referred to as a

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floodwall. Levees and floodwalls confine streamflow within a specified area to prevent flooding.

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     (4) "Relocation" means moving an entire building to another location on the same lot or

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to another lot, usually outside the floodplain. Relocation is a mitigation measure that can offer the

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greatest protection from future flooding.

 

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     (5) "Structural elevation" means various techniques used to raise the existing building to

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or above the base flood elevation (BFE). Elevation is a common technique for protecting an

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existing building in the special flood hazard area (SFHA).

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     (6) "Wet floodproofing" means a design method that allows water to move in the

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enclosed parts of a home's lower area, such as the crawlspace or an unoccupied area, and then out

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when water recedes.

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     (b) In interpreting the definitions listed in subsection (a) of this section to the tax

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assessments improvement exemption provided in this chapter, these definitions shall be applied

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consistent with the interpretation and meaning contained in the February 27, 2015 edition of the

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Hazard Mitigation Assistance Guidance manual published by the Federal Emergency

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Management Agency (FEMA), and any subsequent amendments or revisions to the manual, or as

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otherwise issued by FEMA, whichever is most current. The National Flood Insurance Program

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operated by FEMA may also be utilized for further clarification of these words.

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     45-69-3. Coastal and riverine resilience - Tax assessment improvement exemption.

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     (a) The various cities and towns may provide by ordinance for an exemption on the

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increased assessed value of a property relating to improvements to protect against coastal and

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riverine flooding. Such exemption on improvements shall be as determined by the tax assessor

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after verification that the property is in an area that the (CRMC) has determined is susceptible to

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flooding and which will require or has required rehabilitation or renovation as a result of the

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damage caused by, or is at risk of damage from storm surge, sea level rise, riverine flooding and

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extreme precipitation, and that such improvements will result in reduced susceptibility to flood

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damage. Such coastal and riverine flooding improvement exemption shall apply until the next full

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revaluation of property in the city or town. Prior to receiving this exemption the local building

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inspector shall inspect and approve the plans to incorporate flood mitigation measures to the

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property.

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     (b) The tax exemption amount pursuant to this chapter shall be determined by the local

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tax assessors and based on the severity of the risk to the property and/or the amount of damage

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done to the property which is within an area determined by CRMC to be susceptible to flooding.

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The local tax assessors of the various cities and towns shall be authorized to develop a tax

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exemption formula for issuing tax exemptions pursuant to this section by assessing the cost of

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sustainability and resiliency measures a taxpayer has performed to repair damage, or are

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necessary to prevent future damage, and may employ whatever services necessary including, but

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not limited to, real estate appraisers, construction professionals, or any other professional in

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property valuation, in determining the amount of the tax exemption pursuant to this chapter.

 

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     (c) Tax exemptions allowed pursuant to this chapter shall be allowed for the taxable year

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in which the rehabilitation or renovation occurs.

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     (d) If the amount of the tax exemption exceeds the taxpayer's total tax liability for the

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year in which the rehabilitation or renovation work occurred, the amount that exceeds the

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taxpayer's tax liability may be carried forward for exemption against the taxes imposed for the

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next full property evaluation, or until the full exemption is used, whichever occurs first for the tax

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exemptions.

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     (e) The municipality implementing a tax exemption for property located in a coastal or

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riverine area shall determine what resilience measures it deems qualifying for tax exemptions

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including, but not limited to, the following provisions derived from the Hazard Mitigation

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Assistance Unified Guidance publication issued by the Federal Emergency Management Agency

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Department of Homeland Security, as defined in ยง 45-69-2:

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     (1) Demolition;

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     (2) Dry floodproofing of residential structures;

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     (3) Levees and floodwalls;

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     (4) Relocation;

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     (5) Structural elevation;

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     (6) Wet floodproofing;

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     (7) Relocation or elevation of utility equipment from a basement that may become

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flooded; and

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     (8) Any additional measures the Rhode Island emergency management agency believes

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are imperative to preserving the coastal or riverine property and residential structures and which

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are reasonably expected to achieve their purpose.

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     45-69-4. Severability.

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     If a court of competent jurisdiction shall adjudge to be invalid or unconstitutional any

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clause, sentence, paragraph, section or part of this chapter or the application of it to any person or

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circumstance, the adjudication shall not affect, impair, invalidate or nullify the remainder of this

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chapter, or the applications of this chapter, which can be given effect without the invalid

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provision application, but the effect of the court's adjudication shall be confined to the clause,

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sentence, paragraph, or section or part of this chapter, or application of it, which can be given

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effect without the invalid provision or application so adjudged to be invalid or unconstitutional.

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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 -- COASTAL AND RIVERINE HOME PROTECTION

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     This act would enable cities and towns to provide a tax exemption to individuals who

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take resiliency measures to rehabilitate their property because of flood hazards.

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     This act would take effect upon passage.

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