Rhode Island 2025 Regular Session

Rhode Island House Bill H6175 Compare Versions

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

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5	5	2025 -- H 6175
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7	7	LC002664
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TOWNS AN D CITIES -- ZONING ORDINANCES
16	16	Introduced By: Representative June Speakman
17	17	Date Introduced: April 04, 2025
18	18	Referred To: House Municipal Government & Housing
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20	20
21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 45-24-46.1 of the General Laws in Chapter 45-24 entitled "Zoning 1
23	23	Ordinances" is hereby amended to read as follows: 2
24	24	45-24-46.1. Inclusionary zoning. [Effective January 1, 2025.] 3
25	25	(a) A zoning ordinance requiring the inclusion of affordable housing as part of a 4
26	26	development shall provide that the housing will be affordable housing, as defined in § 42-128-5
27	27	8.1(d)(1); that the affordable housing will be of comparable size and quality to the market-rate 6
28	28	housing; that the affordable housing will constitute not less than fifteen percent (15%) of the total 7
29	29	units proposed for the development; and that the units will remain affordable for a period of not 8
30	30	less than thirty (30) years from initial occupancy enforced through a land lease and/or deed 9
31	31	restriction enforceable by the municipality and the state of Rhode Island. A zoning ordinance that 10
32	32	requires the inclusion of affordable housing as part of a development shall specify the threshold in 11
33	33	which the inclusion of affordable housing is required, but in no event shall a minimum threshold 12
34	34	triggering the inclusion of affordable housing be higher than ten (10) dwelling units. The total 13
35	35	number of units for the development may include less than fifteen percent (15%) affordable units 14
36	36	after the density bonus described in subsection (c) of this section is determined. 15
37	37	(b) A zoning ordinance that includes inclusionary zoning may provide that the affordable 16
38	38	housing must be built on-site or it may allow for one or more alternative methods of production, 17
39	39	including, but not limited to: off-site construction or rehabilitation; donation of land suitable for 18
40	40	development of the required affordable units; and/or the payment of a fee in lieu of the construction 19
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43	43	LC002664 - Page 2 of 5
44	44	or provision of affordable housing units. 1
45	45	(c) Density bonus, zoning incentives, and municipal subsidies. For all projects subject 2
46	46	to inclusionary zoning, subject to applicable setback, lot width, or frontage requirements or the 3
47	47	granting of relief from the same, a municipality shall allow the addition of one market rate unit for 4
48	48	each affordable unit required and the minimum lot area per dwelling unit normally required in the 5
49	49	applicable zoning district shall be reduced by that amount necessary to accommodate the 6
50	50	development. Larger density bonuses for the provision of an increased percentage of affordable 7
51	51	housing in a development may be provided by a municipality in the zoning ordinance. The total 8
52	52	number of units for the development shall equal the number originally proposed, including the 9
53	53	required affordable units, plus the additional units that constitute the density bonus. Local 10
54	54	regulations shall provide for reasonable relief from dimensional requirements to accommodate the 11
55	55	bonus density under this section. A municipality shall provide, and an applicant may request, 12
56	56	additional zoning incentives and/or municipal government subsidies as defined in § 45-53-3 to 13
57	57	offset differential costs of affordable units. Available zoning incentives and municipal government 14
58	58	subsidies may be listed in the zoning ordinance, but shall not be an exclusive list. 15
59	59	(d) Fee-in-lieu. To the extent a municipality provides an option for the payment of a fee-16
60	60	in-lieu of the construction or provision of affordable housing, and an application seeks to utilize 17
61	61	fee-in-lieu, the use of such fee shall be the choice of the developer or builder applied on a per-unit 18
62	62	basis and may be used for new developments, purchasing property and/or homes, rehabilitating 19
63	63	properties, or any other manner that creates additional low- or moderate-income housing as defined 20
64	64	in § 45-53-3(9). Notwithstanding anything to the contrary in this section, when the size of a 21
65	65	development triggers a requirement in a zoning ordinance for one or more affordable housing units, 22
66	66	the unit(s) shall be created. Payment of a fee in lieu of the construction or provision of affordable 23
67	67	housing units is permissible only to pay for fractions of units (i.e. when only a fraction of one full 24
68	68	unit is required or for fractions of units beyond one or more full units). 25
69	69	(1) Eligibility for density bonus. Notwithstanding any other provisions of this chapter, an 26
70	70	application that utilizes a fee-in-lieu, off-site construction or rehabilitation, or donation of land 27
71	71	suitable for development of the required affordable units shall not be eligible for the density bonus 28
72	72	outlined in this section. 29
73	73	(2) An application that seeks to utilize a fee-in-lieu of the construction or provision of 30
74	74	affordable housing must be reviewed by the planning board or commission and is not eligible for 31
75	75	administrative review under the Rhode Island Land Development and Subdivision Review 32
76	76	Enabling Act of 1992, codified at §§ 45-23-25 — 45-23-74. 33
77	77	(3) Amount of fee-in-lieu. For affordable single-family homes and condominium units, the 34
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81	81	per-unit fee shall be the difference between the maximum affordable sales price for a family of four 1
82	82	(4) earning eighty percent (80%) of the area median income as determined annually by the U.S. 2
83	83	Department of Housing and Urban Development and the average cost of developing a single unit 3
84	84	of affordable housing. The average cost of developing a single unit of affordable housing shall be 4
85	85	determined annually based on the average, per-unit development cost of affordable homes financed 5
86	86	by Rhode Island housing and mortgage finance corporation (RIHMFC) over the previous three (3) 6
87	87	years, excluding existing units that received preservation financing. In order to pay for a fraction 7
88	88	of an affordable single-family home or condominium unit, the fraction will be multiplied by the 8
89	89	per-unit fee for the development. The per-unit fee shall be the difference between the maximum 9
90	90	affordable sales price for a family of four (4) earning eighty percent (80%) of the area median 10
91	91	income as determined annually by the U.S. Department of Housing and Urban Development and 11
92	92	the average cost of developing a single unit of affordable housing. The average cost of developing 12
93	93	a single unit of affordable housing shall be determined annually based on the average, per-unit 13
94	94	development cost of affordable homes financed by Rhode Island housing over the previous three 14
95	95	(3) years, excluding units that received preservation financing. 15
96	96	(i) Notwithstanding subsection (d)(3) of this section, in no case shall the per-unit fee for 16
97	97	affordable single family homes and condominium units be less than forty thousand dollars 17
98	98	($40,000). 18
99	99	(4) Use of fee-in-lieu. The municipality shall deposit all in-lieu payments into restricted 19
100	100	accounts that shall be allocated and spent only for the creation and development of affordable 20
101	101	housing within the municipality serving individuals or families at or below eighty percent (80%) 21
102	102	of the area median income. The municipality shall maintain a local affordable housing board to 22
103	103	oversee the funds in the restricted accounts and shall allocate the funds within three (3) years of 23
104	104	collection. The municipality shall include in the housing element of their local comprehensive plan 24
105	105	and shall pass by ordinance, the process it will use to allocate the funds. 25
106	106	(e) As an alternative to the provisions of subsection (d), the municipality may elect to 26
107	107	transfer in-lieu payments promptly upon receipt or within the three-year (3) period after receipt. A 27
108	108	municipality shall transfer all fee-in-lieu payments that are not allocated within three (3) years of 28
109	109	collection, including funds held as of July 1, 2024, to RIHMFC for the purpose of developing 29
110	110	affordable housing within that community. 30
111	111	(f) Both the municipalities and RIHMFC shall report annually with the first report due 31
112	112	December 31, 2024, to the general assembly, the secretary of housing, and the housing resources 32
113	113	commission the amount of fees in lieu collected by community, the projects that were provided 33
114	114	funding with the fees, the dollar amounts allocated to the projects, and the number of units created. 34
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118	118	SECTION 2. This act shall take effect upon passage. 1
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125	125	EXPLANATION
126	126	BY THE LEGISLATIVE COUNCIL
127	127	OF
128	128	A N A C T
129	129	RELATING TO TOWNS AN D CITIES -- ZONING ORDINANCES
130	130	***
131	131	This act would require that the inclusion of affordable housing as part of a development 1
132	132	shall provide that the affordable housing will be of comparable size and quality to the market rate 2
133	133	housing. If there is a requirement for one or more affordable housing units triggered by the size of 3
134	134	a development, the units shall be created. The average cost of developing a single unit of affordable 4
135	135	housing would be determined annually based on the average, per unit development cost of 5
136	136	affordable homes financed by Rhode Island housing over the previous three (3) years. 6
137	137	This act would take effect upon passage. 7
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139	139	LC002664
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