The bill amends Section 45-24-46.1 of the General Laws regarding inclusionary zoning, which mandates that zoning ordinances require a minimum of fifteen percent (15%) of total units in a development to be affordable housing. The affordable units must remain affordable for at least thirty (30) years and cannot be limited to fewer than three bedrooms for single-family units. The bill also allows municipalities to provide various methods for fulfilling affordable housing requirements, including on-site construction, off-site development, land donations, or payment of a fee in lieu of construction. Additionally, it introduces a density bonus that permits the addition of one market-rate unit for each affordable unit required, with provisions for local regulations to accommodate this bonus.

Significantly, the bill revises the fee-in-lieu structure, changing the calculation for affordable single-family homes and condominiums to one hundred and fifty percent (150%) of the cost of developing a single unit of affordable housing. The average cost of developing a single unit will be determined by the Rhode Island Housing and Mortgage Finance Corporation (RIHMFC). The minimum fee is set at forty thousand dollars ($40,000), and municipalities are required to allocate these funds for the creation and development of affordable housing within three years. Any unallocated funds after this period must be transferred to the executive office of housing for further development of affordable housing in the community. This act would take effect upon passage.

Statutes affected:
7153: 45-24-46.1