2023 -- H 6084 SUBSTITUTE B

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LC002193/SUB B

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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:

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

amended by adding thereto the following section:

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

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

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

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

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

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

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

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

for residential development.

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

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

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

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

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

document.

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

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

rules and regulations consistent with this section which establish:

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

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

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

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

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

requirements for such development;

     (3) Criteria for acceptance into the pilot program;

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

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

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

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

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

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

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

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

     42-64.19-3. Executive office of commerce.

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

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

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

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

schedule:

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

regulation;

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

department of administration;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

and/or development;

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

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

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

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

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

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

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

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

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

commission;

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

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

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

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

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

to, the following:

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

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

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

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

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

prior report;

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

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

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

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

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

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

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

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

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

accounting of all:

     (I) Single-family units;

     (II) Accessory dwelling units;

     (III) Two-family (2) units;

     (IV) Three-family (3) units;

     (V) Multi-unit sufficiently delineated units;

     (VI) Mixed use sufficiently delineated units; and

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

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

     (I) Single-family units;

     (II) Accessory dwelling units;

     (III) Two-family (2) units;

     (IV) Three-family (3) units;

     (V) Multi-unit sufficiently delineated units;

     (VI) Mixed use sufficiently delineated units; and

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

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

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

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

approval;

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

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

each approval;

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

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

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

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

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

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

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

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

average and median costs of those units;

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

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

state, or other public support; and

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

affordability level, by unit type;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

housing.

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

     (b) In this capacity, the office shall:

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

to:

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

the state;

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

growth of the state’s economy;

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

federal financial participation, grants, and awards;

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

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

nurture the Rhode Island economy; and

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

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

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

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

reform and improvement of the regulatory function of the state.

     SECTION 3. Section 42-64.34-1 of the General Laws in Chapter 42-64.34 entitled "The

Department of Housing" is hereby amended to read as follows:

     42-64.34-1. Department established.

     Effective January 1, 2023, there is hereby established within the executive branch of the

state government a department of housing. The head of the department shall be the secretary of

housing, who shall be appointed by the governor with the advice and consent of the senate. The

position of secretary is hereby created in the unclassified service. The secretary shall hold office at

the pleasure of the governor. Before entering upon the discharge of duties, the secretary shall take

an oath to faithfully execute the duties of the office.

     SECTION 4. 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

residential housing near convenient public transportation.

     This act would take effect on January 1, 2024.

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