2023 -- H 5941

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LC001821

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO TOWNS AND CITIES -- LOW AND MODERATE INCOME HOUSING

     Introduced By: Representatives Chippendale, Noret, J. Brien, Nardone, Place, and
Casimiro

     Date Introduced: March 01, 2023

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-53-3.1 of the General Laws in Chapter 45-53 entitled "Low and

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

     45-53-3.1. Formula to include non-income restricted multi-family rental units as low-

and moderate-income housing.

     (a) In calculating the number of year-round housing units towards meeting the goals of an

excess of ten percent (10%) of the year-round housing units consistent with local needs required

pursuant to § 45-53-4, rental units in multi-family housing built after June 30, 2022, may be

included as low- or moderate-income housing, in accordance with the following conditions:

     (1) At least thirty percent (30%) of the units created are deed restricted for households

earning not more than sixty percent (60%) of the area median income, adjusted for household size;

or

     (2) At least fifty percent (50%) of the units created are deed restricted for households

earning not more than eighty percent (80%) of the area median income, adjusted for household

size; and

     (3) The proposed affordable units meet all other requirements of this chapter to be

calculated as low- or moderate-income housing; and

     (4) All non-deed restricted units developed under the same comprehensive permit shall be

included in the low- and moderate-income housing inventory as one-half (0.5) units each.

     (b) As used in this section and as applied to this chapter:

     (1) "Area median income (AMI)" means area median household income as defined by the

U.S. Department of Housing and Urban Development, adjusted for household size.

     (2) "Multi-family housing" means a building with three (3) or more residential dwelling

units or two (2) or more buildings on the same lot with more than one residential dwelling unit in

each building.

     (c) Residential units occupied by owners that meet all the criteria of this subsection shall

also be counted in calculating the number of year-round housing units towards meeting the goals

of an excess of ten percent (10%) of the year-round housing units consistent with local needs

required pursuant to § 45-53-4.

     (1) Municipalities may identify the bottom three percent (3%) of their residents, in term of

income, who own their own homes, with or without a mortgage on the property, and whose income

meets the low/moderate income housing (LMIH) income eligibility standards. Owning the home

and using the property as a primary residence (the "primary residence") shall be a prerequisite to

qualifying as low and moderate income housing under this subsection, and identifying and

measuring the bottom three percent shall be based on households earning not more than eighty

percent (80%) of the area median income, adjusted for household size. Every municipality electing

to use this calculation shall establish a restricted receipt account known as the "LMIH Subsidy

Fund."

     (2) Municipalities may offer those residents identified in §45-53-3.1 (c) (1) a deferral of

the portion of their property taxes on their primary residence only as is necessary to lower the cost

of remaining in that property as their primary residence to meet LMIH income eligibility standards.

The debt of all taxes uncollected above that level shall accrue without interest in a "lien account."

This account shall be deemed a government subsidy for LMIH.

     (3) Those resident(s) shall agree to deed restrict their primary residence for the term of

their natural life, or their permanent vacation of the property, or their sale of the property. The lien

shall remain attached to the property and upon sale, the accrued unpaid property taxes shall revert

and be paid to the municipality from the sale proceeds to fund the "LMIH Subsidy Fund."

     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 -- LOW AND MODERATE INCOME HOUSING

***

     The act would provide another method for municipalities to identify and calculate private

residences as low and moderate income housing. This method would be in addition to and not in

lieu of other methods permitted under law.

     This act would take effect upon passage.

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