Affordable/inclusionary housing

Developers of new market rate single- and/or multi-family housing developments within the waterfront district are required to provide affordable housing units for low- and moderate-income households in order to ensure safe, decent and affordable housing to families, elderly and people with special needs.

• • (1) Applicability. The inclusionary zoning requirement shall apply to all developments resulting in the net addition of five or more housing units.

  • (2) Affordability requirements.

    • a. For all applicable projects, at least 25 percent of the units within the development must qualify as affordable housing, as defined by RIGL 42-128-8.1(d)(1).

    • b. Fractional units. Where the required number of affordable units results in a fraction the applicant shall round up to the nearest whole number.

    • c. The applicant shall enter into a monitoring service agreement with a qualified organization, to be approved by the executive director.

    • d. Each owner of any rental inclusionary units shall submit an annual report to the commission by January 31 for the previous calendar year, identifying monthly rental rates, vacancy status of each inclusionary unit, income status for residents and any other related data deemed necessary by the commission while ensuring privacy for all residents. The deed restriction for ownership units shall require conformance reporting upon sale of ownership of inclusionary units.

  • (3) Off-site options.

    • a. Off-site options. The commission, at its sole discretion, may allow an applicant to comply with the inclusionary zoning requirement by constructing inclusionary units on a site within the Waterfront District other than that at which the development is located. The following may be required by the commission for such off-site construction.

      • 1. Off-site rehabilitation of affordable units in existing buildings.

      • 2. Off-site construction of affordable units in new or existing buildings.

    • b. Conditions. Provisions of off-site inclusionary units shall be subject to the following conditions:

      • 1. Off-site inclusionary units shall have a certificate of occupancy prior to, or simultaneous with, the occupancy of market-rate units.

      • 2. Renovated off-site units shall be in full compliance with all applicable construction and occupancy codes and shall be sufficiently maintained or rehabilitated so that all major systems meet standards comparable to new construction.

  • (4) Incentives.

    • a. Density bonus. The number of housing units allowable on the site or sites involved shall be increased to two market rate units for each affordable unit. The performance standards set forth in 19-482 shall otherwise apply.

  • (5) Fee in-lieu payments.

    • a. The developer may choose the option to pay a fee in-lieu of the construction of provision of affordable housing. In the event the developer chooses this option, the application is not eligible for the density bonus outlined in this section.

    • b. 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 earning 80 percent of the area median income as determined annually by the U.S. Department of Housing Urban Development and the average cost of developing single unit of affordable housing. The average cost of developing a single unit of affordable housing shall be determined annually based on average, per-unit development cost of affordable homes financed by Rhode Island housing and mortgage finance corporation (RIHMFC) over the previous three years, excluding existing units that received preservation financing.

      • 1. Notwithstanding subsection (b) above, in no case shall the per-unit fee for affordable single-family homes and condominium units be less than $40,000.00.

      • 2. The commission will allocate in-lieu payments within three years of collection to the creation of affordable housing.

      • 3. Fifty percent of any fee required pursuant to this section shall be paid prior to the issuance of a building permit for the project. The remaining 50 percent shall be paid in full before a certificate of occupancy is issued for any unit in the housing project.

      • 4. Any fee required by this section shall be paid to the East Providence Waterfront Commission Affordable Housing Fund.

(Ch. 317, § I, 3-2-04; Ch. 738, § X, 5-21-19; Ch. 914, § I(Att.), 12-19-23)