The bill amends Section 45-24-46.1 of the General Laws regarding zoning ordinances to enhance the requirements for inclusionary zoning, effective January 1, 2025. It mandates that any zoning ordinance requiring affordable housing as part of a development must ensure that such housing is comparable in size and quality to market-rate housing and constitutes at least 15% of the total units. The bill specifies that when the size of a development triggers a requirement for one or more affordable housing units, those units must be created. Payment of a fee in lieu of constructing affordable units is permissible only for fractions of units, specifically when only a fraction of one full unit is required or for fractions of units beyond one or more full units.

The bill also modifies provisions related to fee-in-lieu options for affordable housing. It removes the previous option for municipalities to allow developers to pay a fee instead of constructing affordable units, clarifying that the fee-in-lieu can only be applied to fractions of units. The per-unit fee is defined as the difference between the maximum affordable sales price for a family of four earning 80% of the area median income, as determined annually by the U.S. Department of Housing and Urban Development, and the average cost of developing a single unit of affordable housing, which is determined annually based on the average, per-unit development cost of affordable homes financed by Rhode Island housing over the previous three years, excluding units that received preservation financing.

Overall, the bill aims to strengthen the commitment to affordable housing in development projects while ensuring that such units are of comparable quality to market-rate options.

Statutes affected:
6175: 45-24-46.1