The bill amends sections 45-53-3 and 45-53-4 of the General Laws concerning "Low and Moderate Income Housing" in Rhode Island. It introduces new definitions, such as equating "low- and moderate-income" housing with "affordable housing," and establishes a "local review board" as the local planning board or commission. The bill mandates that an "approved affordable housing plan" must be part of an unexpired local comprehensive plan, rather than solely approved by the director of administration. It also emphasizes that local zoning and land use ordinances must align with the community's needs for low- and moderate-income housing. Notable deletions include the removal of specific approval processes for affordable housing plans and certain chapters related to comprehensive plans.

Additionally, the bill streamlines the application process for comprehensive permits, allowing applicants to submit a single application if at least 25% of the units are designated for low- or moderate-income residents. It introduces provisions for density bonuses and other municipal incentives to offset costs, while removing the requirement for prior approval of these bonuses. The bill also sets a moratorium on comprehensive permit applications from for-profit developers until January 31, 2005, to manage the volume of applications and ensure towns can adequately prepare housing plans. Overall, the legislation aims to enhance the development of affordable housing by clarifying definitions, streamlining processes, and ensuring local needs are met.