2023 -- H 6058

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LC001889

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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 -- ZONING ORDINANCES

     Introduced By: Representatives Abney, Shekarchi, Biah, Azzinaro, and Hull

     Date Introduced: March 03, 2023

     Referred To: House Judiciary

     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.

     (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 § 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-years (30) 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 that 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 all projects subject to inclusionary zoning, a density bonuses and

other bonus of at least a thirty percent (30%) increase in the allowed dwelling units per acre (DU/A)

as well as other incentives and municipal government subsidies as defined in § 45-53-3 shall be

established by the community and shall apply to offset differential costs of below-market units.

The allowed dwelling units per acre shall be calculated based upon the total lot area of the property

and the minimum lot size requirements of the underlying zoning district in which the property is

located.

     (c) This 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 that creates

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

     (1) 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 and mortgage finance corporation (RIHMFC) over the previous three (3) years,

excluding existing units that received preservation financing.

     (2) Notwithstanding subsection (c)(1) of this section, 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 that 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 shall allocate the funds within two (2) years. The municipality shall

include in the housing element of their local comprehensive plan, if applicable, and shall pass by

ordinance, the process it 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 two-year (2) period after receipt A

municipality shall transfer all fee-in-lieu payments which are not allocated within two (2) years of

collection, including funds held as of July 1, 2023 to the housing resources commission or Rhode

Island housing Rhode Island housing and mortgage finance corporation (RIHMFC) for the purpose

of developing affordable housing within that community.

     (f) Rhode Island housing Both the municipalities and Rhode Island housing and mortgage

finance corporation (RIHMFC) shall report annually to the general assembly, the secretary of

housing and the housing resources commission the amount of fees in lieu collected by community;

the projects that were provided funding with the fees, the dollar amounts allocated to the projects

and the number of units 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 increase the amount of allowable units per acre for all projects subject to

inclusionary zoning as well as other incentives and subsidies to offset differential costs of below-

market units.

     This act would take effect upon passage.

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