The bill amends Section 45-24-46.1 of the General Laws in Chapter 45-24 entitled "Zoning Ordinances" to modify the requirements for inclusionary zoning, which mandates the inclusion of affordable housing in new developments. The bill reduces the minimum percentage of affordable housing units required in a development from 25% to 15% and allows for less than 15% affordable units after determining the density bonus. It also provides for alternative methods of affordable housing production, such as off-site construction, land donation, or payment of a fee in lieu of constructing affordable units. The bill specifies that the affordable housing must remain affordable for at least 30 years and that the minimum threshold for inclusionary zoning cannot be higher than ten dwelling units.

Additionally, the bill revises the density bonus provision, allowing one market rate unit for each affordable unit required, instead of the previous two, and calls for a reduction in the minimum lot area per dwelling unit to accommodate the development. Municipalities are permitted to offer larger density bonuses for developments with a higher percentage of affordable housing. The bill also allows municipalities to provide and applicants to request additional zoning incentives or subsidies to offset the costs of affordable units. The use of fee-in-lieu is at the developer's discretion and is not eligible for the density bonus. The bill requires municipalities to report annually on the use of fee-in-lieu funds and mandates that unallocated funds be transferred to the Rhode Island Housing and Mortgage Finance Corporation (RIHMFC) for affordable housing development within three years. The act is set to take effect on January 1, 2025.

Statutes affected:
7948  SUB A: 45-24-46.1
7948: 45-24-46.1