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