2023 -- S 0876
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LC002753
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO TOWNS AN D CITIES – ZONING ORDINANCES
Introduced By: Senators Gu, Kallman, Britto, and Tikoian
Date Introduced: March 30, 2023
Referred To: Senate Housing & Municipal Government
It is enacted by the General Assembly as follows:
SECTION 1. Section 45-24-46.1 of the General Laws in Chapter 45-24 entitled "Zoning 1
Ordinances" is hereby amended to read as follows: 2
45-24-46.1. Inclusionary zoning. 3
(a) A zoning ordinance requiring the inclusion of affordable housing as part of a 4
development shall provide that the housing will be affordable housing, as defined in § 42-128-5
8.1(d)(1); that the affordable housing will be of comparable size and quality to the market-rate 6
housing; that the affordable housing will constitute not less than ten percent (10%) of the total units 7
in the development; and that the units will remain affordable for a period of not less than thirty-8
years (30) from initial occupancy enforced through a land lease and/or deed restriction enforceable 9
by the municipality and the state of Rhode Island. 10
(b) A zoning ordinance that includes inclusionary zoning may provide that the affordable 11
housing must be built on-site or utilize one or more alternative methods of production, including, 12
but not limited to, off-site construction or rehabilitation, donation of land suitable for development 13
of the required affordable units, and/or the payment of a fee in lieu of the construction or provision 14
of affordable housing units. For all projects subject to inclusionary zoning, density bonuses and 15
other incentives shall be established by the community and shall apply to offset differential costs 16
of below-market units. 17
(c) This fee in lieu of the construction or provision of affordable housing shall be the choice 18
of the developer or builder applied on a per-unit basis and may be used for new developments, 19
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purchasing property and/or homes, rehabilitating properties, or any other manner that creates 1
additional low-or-moderate income housing as defined in § 45-53-3(9). Notwithstanding anything 2
to the contrary in this section, when the size of a development triggers a requirement in a zoning 3
ordinance for one or more affordable housing units, the unit(s) shall be created. Payment of a fee 4
in lieu of the construction or provision of affordable housing units is permissible only to pay for 5
fractions of units (i.e. when only a fraction of one full unit is required or for fractions of units 6
beyond one or more full units). 7
(1) For In order to pay for a fraction of an affordable single-family homes and 8
condominium units unit, the fraction will be multiplied by the per-unit fee for the development. 9
The per-unit fee shall be the difference between the maximum affordable sales price for a family 10
of four (4) earning eighty percent (80%) of the area median income as determined annually by the 11
U.S. Department of Housing and Urban Development and the average cost of developing a single 12
unit of affordable housing. The average cost of developing a single unit of affordable housing shall 13
be determined annually based on the average, per-unit development cost of affordable homes 14
financed by Rhode Island housing over the previous three (3) years, excluding existing units that 15
received preservation financing. 16
(2) Notwithstanding subsection (c)(1) of this section, in no case shall the per-unit fee for 17
affordable single family homes and condominium units be less than forty thousand dollars 18
($40,000). 19
(d) The municipality shall deposit all in-lieu payments into restricted accounts that shall be 20
allocated and spent only for the creation and development of affordable housing within the 21
municipality serving individuals or families at or below eighty percent (80%) of the area median 22
income. The municipality shall maintain a local affordable housing board to oversee the funds in 23
the restricted accounts and shall allocate the funds within two (2) five (5) years. The municipality 24
shall include in the housing element of their local comprehensive plan, if applicable, the process it 25
will use to allocate the funds. 26
(e) As an alternative to the provisions of subsection (d), the municipality may elect to 27
transfer in-lieu payments promptly upon receipt or within the two-year (2) five-year (5) period after 28
receipt to the housing resources commission, the Rhode Island department of housing, or Rhode 29
Island housing for the purpose of developing affordable housing within that community. 30
(f) Rhode Island housing shall report to the general assembly and the housing resources 31
commission the amount of fees in lieu collected by community; the projects that were provided 32
funding with the fees, the dollar amounts allocated to the projects and the number of units created. 33
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SECTION 2. This act shall take effect upon passage. 1
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TOWNS AN D CITIES – ZONING ORDINANCES
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This act would provide that affordable housing shall be of comparable size and quality to 1
market-rate housing and further provide that when there is a requirement for one or more affordable 2
housing units triggered by the size of a development, the units must be created. 3
This act would take effect upon passage. 4
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