2023 -- H 6084 SUBSTITUTE A AS AMENDED

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LC002193/SUB A

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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 Felix, Shekarchi, Azzinaro, Hull, Kazarian, and Tanzi

     Date Introduced: March 03, 2023

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 45-24 of the General Laws entitled "Zoning Ordinances" is hereby

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amended by adding thereto the following section:

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     45-24-77. Transit-oriented development pilot program - Effective January 1, 2024.

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     (a) Findings and declarations. The general assembly finds and declares that in order to

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increase the availability of residential housing near convenient public transportation, alleviate

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traffic congestion and further the goals of chapter 6.2 of title 42, the Act on Climate, enacted in

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2021, there is a need to identify growth centers for higher density housing, considering the capacity

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for water service, sewer service, transit connections, and employment centers.

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     (b) Establishment. To fulfill the findings and declarations of this section, a transit-oriented

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development pilot program is hereby established which shall allow municipalities to apply for funds

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for residential development.

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     (c) Applicability. Effective January 1, 2024, in addition to the criteria to be established by

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the department of housing as set forth in subsection (d) of this section, to qualify for the pilot

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program, a municipality must have developable land or properties which is within a one-quarter

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(1/4) mile radius of a regional mobility hub or a one-eighth (1/8) mile radius of a frequent transit

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stop as such terms are defined in the 2020 Rhode Island transit master plan or its successor

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document.

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     (d) Authority. The department of housing, in conjunction with input and data from the

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department of transportation and division of statewide planning, is hereby authorized to promulgate

 

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rules and regulations consistent with this section which establish:

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     (1) The criteria to qualify for consideration into the pilot program;

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     (2) The process for the application, submission requirements and pre-requisites, including,

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but not limited to, an established zoning overlay district or other provisions which provide increased

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density for residential development at a minimum of ten units per acre (10 U/A), mandates for the

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development of affordable housing, and the easing of dimensional restrictions and parking

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requirements for such development;

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     (3) Criteria for acceptance into the pilot program;

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     (4) Reporting requirements for municipalities accepted into the pilot program; and

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     (5) Penalties for lack of compliance with the pilot program regulations.

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     (e) Reporting. Beginning on December 31, 2024, the department of housing shall publish

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an annual report regarding development under this pilot program, funds distributed and/or

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committed, and such report shall include categories of metrics and data agreed upon by the

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department of housing, department of transportation, and the participating municipalities.

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     SECTION 2. Section 42-64.19-3 of the General Laws in Chapter 42-64.19 entitled

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"Executive Office of Commerce" is hereby amended to read as follows:

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     42-64.19-3. Executive office of commerce.

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     (a) There is hereby established within the executive branch of state government an

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executive office of commerce effective February 1, 2015, to serve as the principal agency of the

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executive branch of state government for managing the promotion of commerce and the economy

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within the state and shall have the following powers and duties in accordance with the following

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schedule:

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     (1) On or about February 1, 2015, to operate functions from the department of business

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regulation;

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     (2) On or about April 1, 2015, to operate various divisions and functions from the

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department of administration;

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     (3) On or before September 1, 2015, to provide to the Senate and the House of

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Representatives a comprehensive study and review of the roles, functions, and programs of the

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department of administration and the department of labor and training to devise recommendations

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and a business plan for the integration of these entities with the office of the secretary of commerce.

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The governor may include such recommendations in the Fiscal Year 2017 budget proposal; and

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     (4) On or before July 1, 2021, to provide for the hiring of a deputy secretary of commerce

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and housing who shall report directly to the secretary of commerce. On July 1, 2022, the deputy

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secretary of commerce and housing shall succeed to the position of secretary of housing, and the

 

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position of deputy secretary of commerce and housing shall cease to exist under this chapter. All

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references in the general laws to the deputy secretary of commerce and housing shall be construed

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to mean the secretary of housing. The secretary of housing shall be appointed by and report directly

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to the governor and shall assume all powers, duties, and responsibilities formerly held by the deputy

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secretary of commerce and housing. Until the formation of the new department of housing pursuant

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to chapter 64.34 of this title, the secretary of housing shall reside within the executive office of

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commerce for administrative purposes only. The secretary of housing shall:

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     (i) Prior to hiring, have completed and earned a minimum of a master’s graduate degree in

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the field of urban planning, economics, or a related field of study or possess a juris doctor law

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degree. Preference shall be provided to candidates having earned an advanced degree consisting of

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an L.L.M. law degree or Ph.D. in urban planning or economics. Qualified candidates must have

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documented five (5) years’ full-time experience employed in the administration of housing policy

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and/or development;

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     (ii) Be responsible for overseeing all housing initiatives in the state of Rhode Island and

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developing a housing plan, including, but not limited to, the development of affordable housing

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opportunities to assist in building strong community efforts and revitalizing neighborhoods;

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     (iii) Coordinate with all agencies directly related to any housing initiatives and participate

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in the promulgation of any regulation having an impact on housing including, but not limited to,

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the Rhode Island housing and mortgage finance corporation, the coastal resources management

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council (CRMC), and state departments including, but not limited to: the department of

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environmental management (DEM), the department of business regulation (DBR), the department

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of transportation (DOT) and statewide planning, and the Rhode Island housing resources

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commission;

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     (iv) Coordinate with the housing resources commission to formulate an integrated housing

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report to include findings and recommendations to the governor, speaker of the house, senate

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president, each chamber’s finance committee, and any committee whose purview is reasonably

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related to, including, but not limited to, issues of housing, municipal government, and health on or

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before December 31, 2021, and annually thereafter which report shall include, but not be limited

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to, the following:

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     (A) The total number of housing units in the state with per community counts, including

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the number of Americans with Disabilities Act compliant special needs units;

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     (B) The occupancy and vacancy rate of the units referenced in subsection (a)(4)(iv)(A);

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     (C) The change in the number of units referenced in subsection (a)(4)(iv)(A), for each of

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the prior three (3) years in figures and as a percentage;

 

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     (D) The number of net new units in development and number of units completed since the

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prior report;

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     (E) For each municipality the number of single-family, two-family (2), and three-family

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(3) units, and multi-unit housing delineated sufficiently to provide the lay reader a useful

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description of current conditions, including a statewide sum of each unit type;

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     (F) The total number of units by income type;

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     (G) A projection of the number of status quo units;

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     (H) A projection of the number of units required to meet housing formation trends;

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     (I) A comparison of regional and other similarly situated state funding sources that support

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housing development including a percentage of private, federal, and public support;

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     (J) A reporting of unit types by number of bedrooms for rental properties including an

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accounting of all:

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     (I) Single-family units;

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     (II) Accessory dwelling units;

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     (III) Two-family (2) units;

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     (IV) Three-family (3) units;

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     (V) Multi-unit sufficiently delineated units;

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     (VI) Mixed use sufficiently delineated units; and

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     (VII) Occupancy and vacancy rates for the prior three (3) years;

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     (K) A reporting of unit types by ownership including an accounting of all:

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     (I) Single-family units;

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     (II) Accessory dwelling units;

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     (III) Two-family (2) units;

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     (IV) Three-family (3) units;

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     (V) Multi-unit sufficiently delineated units;

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     (VI) Mixed use sufficiently delineated units; and

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     (VII) Occupancy and vacancy rates for the prior three (3) years;

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     (L) A reporting of the number of applications submitted or filed for each community

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according to unit type and an accounting of action taken with respect to each application to include,

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approved, denied, appealed, approved upon appeal, and if approved, the justification for each

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approval;

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     (M) A reporting of permits for each community according to affordability level that were

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sought, approved, denied, appealed, approved upon appeal, and if approved, the justification for

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each approval;

 

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     (N) A reporting of affordability by municipality that shall include the following:

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     (I) The percent and number of units of extremely low-, very low-, low-, moderate-, fair-

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market rate, and above-market-rate units; including the average and median costs of those units;

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     (II) The percent and number of units of extremely low-, very low-, low-, and moderate-

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income housing units required to satisfy the ten percent (10%) requirement pursuant to chapter 24

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of title 45; including the average and median costs of those units;

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     (III) The percent and number of units for the affordability levels above moderate-income

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housing, including a comparison to fair-market rent and fair-market homeownership; including the

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average and median costs of those units;

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     (IV) The percentage of cost burden by municipality with population equivalent;

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     (V) The percentage and number of home financing sources, including all private, federal,

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state, or other public support; and

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     (VI) The cost growth for each of the previous five (5) years by unit type at each

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affordability level, by unit type;

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     (O) A reporting of municipal healthy housing stock by unit type and number of bedrooms

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and providing an assessment of the state’s existing housing stock and enumerating any risks to the

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public health from that housing stock, including, but not limited to: the presence of lead, mold, safe

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drinking water, disease vectors (insects and vermin), and other conditions that are an identifiable

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health detriment. Additionally, the report shall provide the percentage of the prevalence of health

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risks by age of the stock for each community by unit type and number of bedrooms; and

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     (P) A recommendation shall be included with the report required under this section that

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shall provide consideration to any and all populations, ethnicities, income levels, and other relevant

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demographic criteria determined by the secretary, and with regard to any and all of the criteria

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enumerated elsewhere in the report separately or in combination, provide recommendations to

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resolve any issues that provide an impediment to the development of housing, including specific

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data and evidence in support of the recommendation. All data and methodologies used to present

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evidence are subject to review and approval of the chief of revenue analysis, and that approval shall

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include an attestation of approval by the chief to be included in the report;

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     (v) Have direct oversight over the office of housing and community development (OHCD)

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and shall be responsible for coordinating with the secretary of commerce a shared staffing

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arrangement until June 30, 2023, to carry out the provisions of this chapter;

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     (vi) On or before November 1, 2022, develop a housing organizational plan to be provided

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to the general assembly that includes a review, analysis, and assessment of functions related to

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housing of all state departments, quasi-public agencies, boards, and commissions. Provided,

 

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further, the secretary, with the input from each department, agency, board, and commission, shall

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include in the plan comprehensive options, including the advantages and disadvantages of each

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option and recommendations relating to the functions and structure of the new department of

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housing.

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     (viii) Establish rules and regulations as set forth in § 45-24-77.

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     (b) In this capacity, the office shall:

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     (1) Lead or assist state departments and coordinate business permitting processes in order

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to:

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     (i) Improve the economy, efficiency, coordination, and quality of the business climate in

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the state;

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     (ii) Design strategies and implement best practices that foster economic development and

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growth of the state’s economy;

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     (iii) Maximize and leverage funds from all available public and private sources, including

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federal financial participation, grants, and awards;

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     (iv) Increase public confidence by conducting customer centric operations whereby

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commercial enterprises are supported and provided programs and services that will grow and

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nurture the Rhode Island economy; and

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     (v) Be the state’s lead agency for economic development.

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     (2) [Deleted by P.L. 2022, ch. 388, § 1 and P.L. 2022, ch. 442, § 1.]

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     (c) The office shall include the office of regulatory reform and other administration

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functions that promote, enhance, or regulate various service and functions in order to promote the

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reform and improvement of the regulatory function of the state.

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     SECTION 3. This act shall take effect on January 1, 2024.

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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 create the transit-oriented development pilot program to encourage

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residential housing near convenient public transportation.

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     This act would take effect on January 1, 2024.

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