§ 45-24-46.1. Inclusionary zoning.
(a) A zoning ordinance requiring the inclusion of affordable housing as part of a development
shall provide that the housing will be affordable housing, as defined in § 42-128-8.1(d)(1); that the affordable housing will constitute not less than fifteen percent (15%)
of the total units proposed for the development; and that the units will remain affordable
for a period of not less than thirty (30) years from initial occupancy enforced through
a land lease and/or deed restriction enforceable by the municipality and the state
of Rhode Island. A zoning ordinance that requires the inclusion of affordable housing
as part of a development shall specify the threshold in which the inclusion of affordable
housing is required, but in no event shall a minimum threshold triggering the inclusion
of affordable housing be higher than ten (10) dwelling units. The total number of
units for the development may include less than fifteen percent (15%) affordable units
after the density bonus described in subsection (c) of this section is determined.
A municipality shall not limit the number of bedrooms for applications submitted under
this section to anything less than three (3) bedrooms per dwelling unit for single-family
dwelling units.
(b) A zoning ordinance that includes inclusionary zoning may provide that the affordable
housing must be built on-site or it may allow for one or more alternative methods
of production, including, but not limited to: off-site construction or rehabilitation;
donation of land suitable for development of the required affordable units; and/or
the payment of a fee in lieu of the construction or provision of affordable housing
units.
(c) Density bonus, zoning incentives, and municipal subsidies. For all projects subject to inclusionary zoning, subject to applicable setback, lot
width, or frontage requirements or the granting of relief from the same, a municipality
shall allow the addition of one market rate unit for each affordable unit required
and the minimum lot area per dwelling unit normally required in the applicable zoning
district shall be reduced by that amount necessary to accommodate the development.
Larger density bonuses for the provision of an increased percentage of affordable
housing in a development may be provided by a municipality in the zoning ordinance.
The total number of units for the development shall equal the number originally proposed,
including the required affordable units, plus the additional units that constitute
the density bonus. Local regulations shall provide for reasonable relief from dimensional
requirements to accommodate the bonus density under this section. A municipality shall
provide, and an applicant may request, additional zoning incentives and/or municipal
government subsidies as defined in § 45-53-3 to offset differential costs of affordable units. Available zoning incentives and
municipal government subsidies may be listed in the zoning ordinance, but shall not
be an exclusive list.
(1) Inclusionary zoning requirements shall not be applied where there is a limitation
on the development density at the subject property under the regulations of a state
agency, such as the coastal resources management council or department of environmental
management that prevents the use of the density bonus set forth in this section.
(d) Fee-in-lieu. To the extent a municipality provides an option for the payment of a fee-in-lieu
of the construction or provision of affordable housing, and an application seeks to
utilize fee-in-lieu, the use of such fee shall be the choice of the developer or builder
applied on a per-unit basis and may be used for new developments, purchasing property
and/or homes, rehabilitating properties, or any other manner that creates additional
low- or moderate-income housing as defined in § 45-53-3(9).
(1) Eligibility for density bonus. Notwithstanding any other provisions of this chapter, an application that utilizes
a fee-in-lieu, off-site construction or rehabilitation, or donation of land suitable
for development of the required affordable units shall not be eligible for the density
bonus outlined in this section.
(2) An application that seeks to utilize a fee-in-lieu of the construction or provision
of affordable housing must be reviewed by the planning board or commission and is
not eligible for administrative review under the Rhode Island Land Development and
Subdivision Review Enabling Act of 1992, codified at §§ 45-23-25 — 45-23-74.
(3) Amount of fee-in-lieu. For affordable single-family homes and condominium units, the per-unit fee shall
be the difference between the maximum affordable sales price for a family of four
(4) earning eighty percent (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. The average cost of developing a single unit
of affordable housing shall be determined annually based on the average, per-unit
development cost of affordable homes financed by Rhode Island housing and mortgage
finance corporation (RIHMFC) over the previous three (3) years, excluding existing
units that received preservation financing.
(i) Notwithstanding subsection (d)(3) of this section, in no case shall the per-unit fee
for affordable single-family homes and condominium units be less than forty thousand
dollars ($40,000).
(4) Use of fee-in-lieu. The municipality shall deposit all in-lieu payments into restricted accounts that
shall be allocated and spent only for the creation and development of affordable housing
within the municipality serving individuals or families at or below eighty percent
(80%) of the area median income. The municipality shall maintain a local affordable
housing board to oversee the funds in the restricted accounts and shall allocate the
funds within three (3) years of collection. The municipality shall include in the
housing element of their local comprehensive plan and shall pass by ordinance, the
process it will use to allocate the funds.
(e) As an alternative to the provisions of subsection (d), the municipality may elect
to transfer in-lieu payments promptly upon receipt or within the three-year (3) period
after receipt. A municipality shall transfer all fee-in-lieu payments that are not
allocated within three (3) years of collection, including funds held as of July 1,
2025, to the executive office of housing for the purpose of developing affordable
housing within that community. Funds shall be deposited into the Housing Production
Fund established pursuant to § 42-128-2.1.
(f) [Deleted by P.L. 2025, ch. 278, art. 9, § 16.]