Rhode Island 2025 Regular Session

Rhode Island House Bill H6176 Compare Versions

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

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5	5	2025 -- H 6176
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7	7	LC002686
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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: Representatives Edwards, and McGaw
17	17	Date Introduced: April 04, 2025
18	18	Referred To: House Municipal Government & Housing
19	19	(Tiverton)
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 constitute not less than fifteen percent (15%) of the total 6
28	28	units proposed for the development; and that the units will remain affordable for a period of not 7
29	29	less than thirty (30) years from initial occupancy enforced through a land lease and/or deed 8
30	30	restriction enforceable by the municipality and the state of Rhode Island. A zoning ordinance that 9
31	31	requires the inclusion of affordable housing as part of a development shall specify the threshold in 10
32	32	which the inclusion of affordable housing is required, but in no event shall a minimum threshold 11
33	33	triggering the inclusion of affordable housing be higher than ten (10) dwelling units. The total 12
34	34	number of units for the development may include less than fifteen percent (15%) affordable units 13
35	35	after the density bonus described in subsection (c) of this section is determined. 14
36	36	(b) A zoning ordinance that includes inclusionary zoning may provide that the affordable 15
37	37	housing must be built on-site or it may allow for one or more alternative methods of production, 16
38	38	including, but not limited to: off-site construction or rehabilitation; donation of land suitable for 17
39	39	development of the required affordable units; and/or the payment of a fee in lieu of the construction 18
40	40	or provision of affordable housing units. 19
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43	43	LC002686 - Page 2 of 4
44	44	(c) Density bonus, zoning incentives, and municipal subsidies. For all projects subject 1
45	45	to inclusionary zoning, subject to applicable setback, lot width, or frontage requirements or the 2
46	46	granting of relief from the same, a municipality shall allow the addition of one market rate unit for 3
47	47	each affordable unit required and the minimum lot area per dwelling unit normally required in the 4
48	48	applicable zoning district shall be reduced by that amount necessary to accommodate the 5
49	49	development. Larger density bonuses for the provision of an increased percentage of affordable 6
50	50	housing in a development may be provided by a municipality in the zoning ordinance. The total 7
51	51	number of units for the development shall equal the number originally proposed, including the 8
52	52	required affordable units, plus the additional units that constitute the density bonus. Local 9
53	53	regulations shall provide for reasonable relief from dimensional requirements to accommodate the 10
54	54	bonus density under this section. A municipality shall provide, and an applicant may request, 11
55	55	additional zoning incentives and/or municipal government subsidies as defined in § 45-53-3 to 12
56	56	offset differential costs of affordable units. Available zoning incentives and municipal government 13
57	57	subsidies may be listed in the zoning ordinance, but shall not be an exclusive list. Notwithstanding 14
58	58	any provisions of this section, the town of Tiverton shall be allowed to determine its density 15
59	59	bonuses based upon its underlying zoning. 16
60	60	(d) Fee-in-lieu. To the extent a municipality provides an option for the payment of a fee-17
61	61	in-lieu of the construction or provision of affordable housing, and an application seeks to utilize 18
62	62	fee-in-lieu, the use of such fee shall be the choice of the developer or builder applied on a per-unit 19
63	63	basis and may be used for new developments, purchasing property and/or homes, rehabilitating 20
64	64	properties, or any other manner that creates additional low- or moderate-income housing as defined 21
65	65	in § 45-53-3(9). 22
66	66	(1) Eligibility for density bonus. Notwithstanding any other provisions of this chapter, an 23
67	67	application that utilizes a fee-in-lieu, off-site construction or rehabilitation, or donation of land 24
68	68	suitable for development of the required affordable units shall not be eligible for the density bonus 25
69	69	outlined in this section. 26
70	70	(2) An application that seeks to utilize a fee-in-lieu of the construction or provision of 27
71	71	affordable housing must be reviewed by the planning board or commission and is not eligible for 28
72	72	administrative review under the Rhode Island Land Development and Subdivision Review 29
73	73	Enabling Act of 1992, codified at §§ 45-23-25 — 45-23-74. 30
74	74	(3) Amount of fee-in-lieu. For affordable single-family homes and condominium units, the 31
75	75	per-unit fee shall be the difference between the maximum affordable sales price for a family of four 32
76	76	(4) earning eighty percent (80%) of the area median income as determined annually by the U.S. 33
77	77	Department of Housing and Urban Development and the average cost of developing a single unit 34
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81	81	of affordable housing. The average cost of developing a single unit of affordable housing shall be 1
82	82	determined annually based on the average, per-unit development cost of affordable homes financed 2
83	83	by Rhode Island housing and mortgage finance corporation (RIHMFC) over the previous three (3) 3
84	84	years, excluding existing units that received preservation financing. 4
85	85	(i) Notwithstanding subsection (d)(3) of this section, in no case shall the per-unit fee for 5
86	86	affordable single family homes and condominium units be less than forty thousand dollars 6
87	87	($40,000). 7
88	88	(4) Use of fee-in-lieu. The municipality shall deposit all in-lieu payments into restricted 8
89	89	accounts that shall be allocated and spent only for the creation and development of affordable 9
90	90	housing within the municipality serving individuals or families at or below eighty percent (80%) 10
91	91	of the area median income. The municipality shall maintain a local affordable housing board to 11
92	92	oversee the funds in the restricted accounts and shall allocate the funds within three (3) years of 12
93	93	collection. The municipality shall include in the housing element of their local comprehensive plan 13
94	94	and shall pass by ordinance, the process it will use to allocate the funds. 14
95	95	(e) As an alternative to the provisions of subsection (d), the municipality may elect to 15
96	96	transfer in-lieu payments promptly upon receipt or within the three-year (3) period after receipt. A 16
97	97	municipality shall transfer all fee-in-lieu payments that are not allocated within three (3) years of 17
98	98	collection, including funds held as of July 1, 2024, to RIHMFC for the purpose of developing 18
99	99	affordable housing within that community. 19
100	100	(f) Both the municipalities and RIHMFC shall report annually with the first report due 20
101	101	December 31, 2024, to the general assembly, the secretary of housing, and the housing resources 21
102	102	commission the amount of fees in lieu collected by community, the projects that were provided 22
103	103	funding with the fees, the dollar amounts allocated to the projects, and the number of units created. 23
104	104	SECTION 2. This act shall take effect upon passage. 24
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111	111	EXPLANATION
112	112	BY THE LEGISLATIVE COUNCIL
113	113	OF
114	114	A N A C T
115	115	RELATING TO TOWNS AN D CITIES -- ZONING ORDINANCES
116	116	***
117	117	This act would allow the town of Tiverton to determine its density bonuses based upon its 1
118	118	underlying zoning. 2
119	119	This act would take effect upon passage. 3
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