| 27 | | - | 8.1(d)(1); that the affordable housing will constitute not less than ten percent (10%) twenty-five 6 |
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| 28 | | - | (25%) of the total units in the development; and that the units will remain affordable for a period 7 |
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| 29 | | - | of not less than thirty-years (30) from initial occupancy enforced through a land lease and/or deed 8 |
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| 30 | | - | restriction enforceable by the municipality and the state of Rhode Island. A zoning ordinance which 9 |
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| 31 | | - | requires the inclusion of affordable housing as part of a development shall specify the threshold in 10 |
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| 32 | | - | which the inclusion of affordable housing is required, but in no event shall a minimum threshold 11 |
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| 33 | | - | triggering the inclusion of affordable housing be higher than ten (10) dwelling units. 12 |
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| 34 | | - | (b) A zoning ordinance that includes inclusionary zoning may provide that the affordable 13 |
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| 35 | | - | housing must be built on-site or utilize one or more alternative methods of production, including, 14 |
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| 36 | | - | but not limited to, off-site construction or rehabilitation, donation of land suitable for development 15 |
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| 37 | | - | of the required affordable units, and/or the payment of a fee in lieu of the construction or provision 16 |
|---|
| 38 | | - | of affordable housing units. 17 |
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| 39 | | - | (c) Density bonus, zoning incentives and municipal subsidies. For all projects subject to 18 |
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| 40 | | - | inclusionary zoning, density bonuses and other incentives shall be established by the community 19 |
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| 27 | + | 8.1(d)(1); that the affordable housing will constitute not less than ten percent (10%) of the total 6 |
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| 28 | + | units in the development; and that the units will remain affordable for a period of not less than 7 |
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| 29 | + | thirty-years (30) from initial occupancy enforced through a land lease and/or deed restriction 8 |
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| 30 | + | enforceable by the municipality and the state of Rhode Island. 9 |
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| 31 | + | (b) A zoning ordinance that includes inclusionary zoning may provide that the affordable 10 |
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| 32 | + | housing must be built on-site or utilize one or more alternative methods of production, including, 11 |
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| 33 | + | but not limited to, off-site construction or rehabilitation, donation of land suitable for development 12 |
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| 34 | + | of the required affordable units, and/or the payment of a fee in lieu of the construction or provision 13 |
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| 35 | + | of affordable housing units. For all projects subject to inclusionary zoning, a density bonuses and 14 |
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| 36 | + | other bonus of at least a thirty percent (30%) increase in the allowed dwelling units per acre (DU/A) 15 |
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| 37 | + | as well as other incentives and municipal government subsidies as defined in § 45-53-3 shall be 16 |
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| 38 | + | established by the community and shall apply to offset differential costs of below-market units. 17 |
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| 39 | + | The allowed dwelling units per acre shall be calculated based upon the total lot area of the property 18 |
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| 40 | + | and the minimum lot size requirements of the underlying zoning district in which the property is 19 |
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| 43 | | - | LC001889/SUB A - Page 2 of 4 |
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| 44 | | - | and shall apply to offset differential costs of below-market units. subject to applicable setback, lot 1 |
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| 45 | | - | width, or frontage requirements or the granting of relief from the same, a municipality shall allow 2 |
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| 46 | | - | the addition of two (2) market rate units for each affordable unit provided and the minimum lot 3 |
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| 47 | | - | area per dwelling unit normally required in the applicable zoning district shall be reduced by that 4 |
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| 48 | | - | amount necessary to accommodate the development. Larger density bonuses for the provision of 5 |
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| 49 | | - | an increased percentage of affordable housing in a development may be provided by a municipality 6 |
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| 50 | | - | in the zoning ordinance. Nothing herein shall prohibit a municipality from providing, or an 7 |
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| 51 | | - | applicant from requesting additional zoning incentives and/or municipal government subsidies as 8 |
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| 52 | | - | defined in § 45-53-3 to offset differential costs of affordable units. Available zoning incentives and 9 |
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| 53 | | - | municipal government subsidies shall be listed in the zoning ordinance. 10 |
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| 54 | | - | (c) This (d) Fee-in-lieu. To the extent a municipality provides an option for the payment of 11 |
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| 55 | | - | a fee-in-lieu of the construction or provision of affordable housing, such fee in lieu of the 12 |
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| 56 | | - | construction or provision of affordable housing shall be the choice of the developer or builder 13 |
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| 57 | | - | applied on a per-unit basis and may be used for new developments, purchasing property and/or 14 |
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| 58 | | - | homes, rehabilitating properties, or any other manner that creates additional low-or-moderate 15 |
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| 59 | | - | income housing as defined in § 45-53-3(9). 16 |
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| 60 | | - | (1) Eligibility for density bonus. Notwithstanding any other provisions of this chapter, an 17 |
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| 61 | | - | application which utilizes a fee-in-lieu of the construction or provision of affordable housing shall 18 |
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| 62 | | - | not be eligible for the density bonus outlined in this section. 19 |
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| 63 | | - | (2) An application which seeks to utilize a fee-in-lieu of the construction or provision of 20 |
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| 64 | | - | affordable housing must be permitted by the planning board or commission and is not eligible for 21 |
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| 65 | | - | administrative review under the Rhode Island Land Development and Subdivision Review 22 |
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| 66 | | - | Enabling Act of 1992, codified at §§ 45-23-25 - 45-23-74. 23 |
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| 67 | | - | (3) Amount of fee-in-lieu. For affordable single-family homes and condominium units, the 24 |
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| 68 | | - | per-unit fee shall be the difference between the maximum affordable sales price for a family of four 25 |
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| 69 | | - | (4) earning eighty percent (80%) of the area median income as determined annually by the U.S. 26 |
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| 70 | | - | Department of Housing and Urban Development and the average cost of developing a single unit 27 |
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| 71 | | - | of affordable housing. The average cost of developing a single unit of affordable housing shall be 28 |
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| 72 | | - | determined annually based on the average, per-unit development cost of affordable homes financed 29 |
|---|
| 73 | | - | by Rhode Island housing and mortgage finance corporation (RIHMFC) over the previous three (3) 30 |
|---|
| 74 | | - | years, excluding existing units that received preservation financing. 31 |
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| 75 | | - | (2)(i) Notwithstanding subsection (c)(1) (d)(3) of this section, in no case shall the per-unit 32 |
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| 76 | | - | fee for affordable single family homes and condominium units be less than forty thousand dollars 33 |
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| 77 | | - | ($40,000). 34 |
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| 43 | + | LC001889 - Page 2 of 4 |
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| 44 | + | located. 1 |
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| 45 | + | (c) This fee in lieu of the construction or provision of affordable housing shall be the choice 2 |
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| 46 | + | of the developer or builder applied on a per-unit basis and may be used for new developments, 3 |
|---|
| 47 | + | purchasing property and/or homes, rehabilitating properties, or any other manner that creates 4 |
|---|
| 48 | + | additional low-or-moderate income housing as defined in § 45-53-3(9). 5 |
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| 49 | + | (1) For affordable single-family homes and condominium units, the per-unit fee shall be 6 |
|---|
| 50 | + | the difference between the maximum affordable sales price for a family of four (4) earning eighty 7 |
|---|
| 51 | + | percent (80%) of the area median income as determined annually by the U.S. Department of 8 |
|---|
| 52 | + | Housing and Urban Development and the average cost of developing a single unit of affordable 9 |
|---|
| 53 | + | housing. The average cost of developing a single unit of affordable housing shall be determined 10 |
|---|
| 54 | + | annually based on the average, per-unit development cost of affordable homes financed by Rhode 11 |
|---|
| 55 | + | Island housing and mortgage finance corporation (RIHMFC) over the previous three (3) years, 12 |
|---|
| 56 | + | excluding existing units that received preservation financing. 13 |
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| 57 | + | (2) Notwithstanding subsection (c)(1) of this section, in no case shall the per-unit fee for 14 |
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| 58 | + | affordable single family homes and condominium units be less than forty thousand dollars 15 |
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| 59 | + | ($40,000). 16 |
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| 60 | + | (d) The municipality shall deposit all in-lieu payments into restricted accounts that shall be 17 |
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| 61 | + | allocated and spent only for the creation and development of affordable housing within the 18 |
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| 62 | + | municipality serving individuals or families at or below eighty percent (80%) of the area median 19 |
|---|
| 63 | + | income. The municipality shall maintain a local affordable housing board to oversee the funds in 20 |
|---|
| 64 | + | the restricted accounts and shall allocate the funds within two (2) years. The municipality shall 21 |
|---|
| 65 | + | include in the housing element of their local comprehensive plan, if applicable, and shall pass by 22 |
|---|
| 66 | + | ordinance, the process it will use to allocate the funds. 23 |
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| 67 | + | (e) As an alternative to the provisions of subsection (d), the municipality may elect to 24 |
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| 68 | + | transfer in-lieu payments promptly upon receipt or within the two-year (2) period after receipt A 25 |
|---|
| 69 | + | municipality shall transfer all fee-in-lieu payments which are not allocated within two (2) years of 26 |
|---|
| 70 | + | collection, including funds held as of July 1, 2023 to the housing resources commission or Rhode 27 |
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| 71 | + | Island housing Rhode Island housing and mortgage finance corporation (RIHMFC) for the purpose 28 |
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| 72 | + | of developing affordable housing within that community. 29 |
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| 73 | + | (f) Rhode Island housing Both the municipalities and Rhode Island housing and mortgage 30 |
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| 74 | + | finance corporation (RIHMFC) shall report annually to the general assembly, the secretary of 31 |
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| 75 | + | housing and the housing resources commission the amount of fees in lieu collected by community; 32 |
|---|
| 76 | + | the projects that were provided funding with the fees, the dollar amounts allocated to the projects 33 |
|---|
| 77 | + | and the number of units created. 34 |
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| 80 | | - | LC001889/SUB A - Page 3 of 4 |
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| 81 | | - | (d)(4) Use of fee-in-lieu. The municipality shall deposit all in-lieu payments into restricted 1 |
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| 82 | | - | accounts that shall be allocated and spent only for the creation and development of affordable 2 |
|---|
| 83 | | - | housing within the municipality serving individuals or families at or below eighty percent (80%) 3 |
|---|
| 84 | | - | of the area median income. The municipality shall maintain a local affordable housing board to 4 |
|---|
| 85 | | - | oversee the funds in the restricted accounts and shall allocate the funds within two (2) years three 5 |
|---|
| 86 | | - | (3) years of collection. The municipality shall include in the housing element of their local 6 |
|---|
| 87 | | - | comprehensive plan, if applicable, and shall pass by ordinance, the process it will use to allocate 7 |
|---|
| 88 | | - | the funds. 8 |
|---|
| 89 | | - | (e) As an alternative to the provisions of subsection (d), the municipality may elect to 9 |
|---|
| 90 | | - | transfer in-lieu payments promptly upon receipt or within the two-year (2) three (3) year period 10 |
|---|
| 91 | | - | after receipt. A municipality shall transfer all fee-in-lieu payments which are not allocated within 11 |
|---|
| 92 | | - | three (3) years of collection, including funds held as of July 1, 2024, to the housing resources 12 |
|---|
| 93 | | - | commission or Rhode Island housing RIHMFC for the purpose of developing affordable housing 13 |
|---|
| 94 | | - | within that community. 14 |
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| 95 | | - | (f) Rhode Island housing Both the municipalities and RIHMFC shall report annually with 15 |
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| 96 | | - | the first report due December 31, 2024 to the general assembly, the secretary of housing and the 16 |
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| 97 | | - | housing resources commission the amount of fees in lieu collected by community; the projects that 17 |
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| 98 | | - | were provided funding with the fees, the dollar amounts allocated to the projects and the number 18 |
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| 99 | | - | of units created. 19 |
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| 100 | | - | SECTION 2. This act shall take effect on January 1, 2024. 20 |
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| 80 | + | LC001889 - Page 3 of 4 |
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| 81 | + | SECTION 2. This act shall take effect upon passage. 1 |
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