Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0588 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3
4	4
5	5	2023 -- S 0588
6	6	========
7	7	LC002442
8	8	========
9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TOWNS AN D CITIES -- LOW AND MODERATE INCOME HOUS ING
16	16	Introduced By: Senators Rogers, de la Cruz, DeLuca, Ciccone, E Morgan, DiPalma, F.
17	17	Lombardi, Burke, Paolino, and Tikoian
18	18	Date Introduced: March 07, 2023
19	19	Referred To: Senate Housing & Municipal Government
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 45-53-3.1 of the General Laws in Chapter 45-53 entitled "Low and 1
24	24	Moderate Income Housing" is hereby amended to read as follows: 2
25	25	45-53-3.1. Formula to include non-income restricted multi-family rental units as low- 3
26	26	and moderate-income housing. 4
27	27	(a) In calculating the number of year-round housing units towards meeting the goals of an 5
28	28	excess of ten percent (10%) of the year-round housing units consistent with local needs required 6
29	29	pursuant to § 45-53-4, rental units in multi-family housing built after June 30, 2022, may be 7
30	30	included as low- or moderate-income housing, in accordance with the following conditions: 8
31	31	(1) At least thirty percent (30%) of the units created are deed restricted for households 9
32	32	earning not more than sixty percent (60%) of the area median income, adjusted for household size; 10
33	33	or 11
34	34	(2) At least fifty percent (50%) of the units created are deed restricted for households 12
35	35	earning not more than eighty percent (80%) of the area median income, adjusted for household 13
36	36	size; and 14
37	37	(3) The proposed affordable units meet all other requirements of this chapter to be 15
38	38	calculated as low- or moderate-income housing; and 16
39	39	(4) All non-deed restricted units developed under the same comprehensive permit shall be 17
40	40	included in the low- and moderate-income housing inventory as one-half (0.5) units each. 18
41	41	(b) As used in this section and as applied to this chapter: 19
42	42
43	43
44	44	LC002442 - Page 2 of 3
45	45	(1) "Area median income (AMI)" means area median household income as defined by the 1
46	46	U.S. Department of Housing and Urban Development, adjusted for household size. 2
47	47	(2) "Multi-family housing" means a building with three (3) or more residential dwelling 3
48	48	units or two (2) or more buildings on the same lot with more than one residential dwelling unit in 4
49	49	each building. 5
50	50	(c) Residential units occupied by owners that meet all the criteria of this subsection shall 6
51	51	also be counted in calculating the number of year-round housing units towards meeting the goals 7
52	52	of an excess of ten percent (10%) of the year-round housing units consistent with local needs 8
53	53	required pursuant to § 45-53-4. 9
54	54	(1) Municipalities may identify the bottom three percent (3%) of their residents, in term of 10
55	55	income, who own their own homes, with or without a mortgage on the property, and whose income 11
56	56	meets the low/moderate income housing (LMIH) income eligibility standards. Owning the home 12
57	57	and using the property as a primary residence (the "primary residence") shall be a prerequisite to 13
58	58	qualifying as low and moderate income housing under this subsection, and identifying and 14
59	59	measuring the bottom three percent shall be based on households earning not more than eighty 15
60	60	percent (80%) of the area median income, adjusted for household size. Every municipality electing 16
61	61	to use this calculation shall establish a restricted receipt account known as the "LMIH Subsidy 17
62	62	Fund." 18
63	63	(2) Municipalities may offer those residents identified in §45-53-3.1 (c) (1) a deferral of 19
64	64	the portion of their property taxes on their primary residence only as is necessary to lower the cost 20
65	65	of remaining in that property as their primary residence to meet LMIH income eligibility standards. 21
66	66	The debt of all taxes uncollected above that level shall accrue without interest in a "lien account." 22
67	67	This account shall be deemed a government subsidy for LMIH. 23
68	68	(3) Those resident(s) shall agree to deed restrict their primary residence for the term of 24
69	69	their natural life, or their permanent vacation of the property, or their sale of the property. The lien 25
70	70	shall remain attached to the property and upon sale, the accrued unpaid property taxes shall revert 26
71	71	and be paid to the municipality from the sale proceeds to fund the "LMIH Subsidy Fund." 27
72	72	SECTION 2. This act shall take effect upon passage. 28
73	73	========
74	74	LC002442
75	75	========
76	76
77	77
78	78	LC002442 - Page 3 of 3
79	79	EXPLANATION
80	80	BY THE LEGISLATIVE COUNCIL
81	81	OF
82	82	A N A C T
83	83	RELATING TO TOWNS AN D CITIES -- LOW AND MODERATE INC OME HOUSING
84	84	***
85	85	The act would provide another method for municipalities to identify and calculate private 1
86	86	residences as low and moderate income housing. This method would be in addition to and not in 2
87	87	lieu of other methods permitted under law. 3
88	88	This act would take effect upon passage. 4
89	89	========
90	90	LC002442
91	91	========
92	92