18.18.010 Purpose.
18.18.020 Basic inclusionary unit requirement.
18.18.030 Methods of housing production.
18.18.040 Calculation and use of the fee in lieu of construction.
18.18.050 Land donation.
18.18.060 Assurance of affordability.
18.18.070 Cost-mitigating provisions.
18.18.080 Integrating inclusionary units.
18.18.090 Marketing and resident selection.
18.18.100 Cumulative impact.
The purpose of this Chapter is to ensure that new development and reuse projects support Richmond's goal of housing diversity consistent with the Richmond comprehensive community plan and with state statutes and regulations. These provisions are intended to assure that all residential developments authorized for six or more dwelling units will contribute to the supply of low or moderate income housing.
(Ord. dated 5-6-08; ord. dated 9-20-11; ord. dated 11-3-15)
A. Any development that results in the net addition of six or more dwelling units must contribute to the production of low or moderate income housing in Richmond. To determine how many inclusionary units must be produced, the basic number of units permitted is multiplied by 15%, and fractions are rounded up. The requirement in this Chapter to provide low or moderate income dwelling units does not apply to development in the Planned Unit Development-Village Center zoning district.
(Ord. dated 5-6-08; ord. dated 11-3-15)
A. The obligation to contribute to the production of low or moderate income housing can be satisfied by any of these methods or any combination of these methods:
1. Constructing low or moderate income housing at the development site.
2. Constructing low or moderate income housing at another site.
3. Substantially rehabilitating existing housing, either at the development site or at another site, that will be converted to low or moderate income housing.
4. Donating land suitable for the construction of low or moderate income units.
5. Paying a fee in lieu of the construction of low or moderate income housing.
The developer or builder shall determine, on a unit-by-unit basis, whether to pay the fee in lieu of construction or satisfy the obligation by some other method or combination of methods. The obligation to produce a low or moderate income housing cannot be satisfied by construction of an accessory dwelling unit.
B. If the inclusionary units will be constructed at the development site, a development that results in a net addition of six or seven market-rate dwelling units must provide inclusionary housing that is affordable to a household with an income of no more than 100% of the area median income, and a development that will result in the net addition of eight or more market-rate dwelling units must provide inclusionary housing that is affordable to a household with an income of no more than 80% of the area median income.
C. Inclusionary units that will be rented must provide housing that is affordable to a household with an income of no more than 80% of the area median income.
(Ord. dated 5-6-08; ord. dated 11-3-15)
A. The fee in lieu of construction for each low or moderate unit shall be the difference between the maximum affordable sales price for a family of four 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; provided, however, that the fee shall not be less than forty thousand dollars ($40,000). 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 R.I. housing and mortgage finance corporation during the previous three years, excluding existing units that received preservation financing.
B. All fees in lieu of construction shall be deposited in the restricted affordable housing fund established by Chapter 3.08 of the Code of Ordinances and shall be used only for the production of housing for families with incomes of 80% or less of the area median income.
(Ord. dated 5-6-08; ord. dated 9-20-11; ord. dated 11-3-15)
A. If all or some of the obligation to produce low or moderate income housing will be satisfied by donation of land, the land must be suitable for residential development.
B. The extent to which the land will satisfy the developer’s obligation to produce low or moderate income housing shall be determined by the fair market value of the land. The fair market value shall be determined as follows:
1. A surveyor retained by the developer or builder shall prepare a yield plan that satisfies the requirements of the land development and subdivision regulations.
2. The yield plan shall be submitted to the administrative officer, who shall review the yield plan and affirm in writing that it is accurate.
3. The developer or builder shall retain a real estate appraiser licensed or certified by the state to prepare a written appraisal of the property based on the yield plan.
4. The appraisal shall be submitted to the administrative officer.
C. After the administrative officer affirms that the appraisal satisfies the requirements of this Section, the developer or builder shall submit to the administrative officer a metes and bounds warranty deed to the property. The administrative officer will ask the town council to accept ownership of the land. The donation shall not be considered completed until the town council has voted to accept ownership.
D. The land must be used for the production of low or moderate income housing. The affordable housing committee shall make recommendations to the town council concerning the use of each parcel of land donated under this Section.
(Ord. dated 11-3-15)
A. The affordability of all inclusionary units created pursuant to this Chapter shall be guaranteed for at least 99 years from the date of initial occupancy.
B. Eligible occupants. Only buyers meeting the applicable income restrictions may purchase low or moderate income dwelling units for sale. Buyers shall occupy such dwelling units as their primary residence and shall not rent the units except during temporary absences for a total of not more than eight weeks in any twelve-month period, unless the zoning enforcement officer determines that the absence is truly temporary and specifies a date by which the owner intends to resume residency. Rental units shall be sub-leased only to a household meeting the applicable income restrictions on affordability.
C. Qualification and monitoring. The developer or builder shall contract with a monitoring agency approved by the R.I. housing and mortgage finance corporation for the following purposes:
1. To determine pricing for initial sale, resale, lease, or sublease of the low or moderate income dwelling units;
2. To qualify purchasers or renters for initial occupancy based on household size and income;
3. To determine pricing for resale or transfer of dwelling units; and
4. To assist in the development of a marketing and resident selection plan that meets state and federal fair housing requirements, to be approved by the planning board.
D. Long-term affordability. Long-term affordability shall be assured through a land lease and/or deed restriction recorded in the land evidence records at the time of initial sale. The lease or deed restriction shall include information regarding:
1. The basis for calculating the maximum sale or rental price for the dwelling unit initially and in the future.
2. Restrictions concerning who may occupy the unit, and for what period.
3. The marketing and resident selection plan required in Section 18.18.090.
4. Provisions for monitoring and assurance of compliance over time.
(Ord. dated 5-6-08; ord. dated 11-3-15)
The following municipal subsidies are intended to make construction of the inclusionary dwelling units more affordable.
A. Density increase. The number of dwelling units on the site or at an off-site location shall be increased above that otherwise permitted by a number equal to the number of required inclusionary units to be constructed. In a residential subdivision, the number of lots shall be increased only as necessary to accommodate the additional dwelling units proposed. No density increase shall be provided when the obligation to provide low or moderate income housing is satisfied by payment of a fee in lieu of construction or donation of land. In no case shall the residential density at any site be increase by more than 35% above what would otherwise be permitted.
1. The planning board shall have the authority to adjust lot size, lot width, lot coverage, front, side and rear yard size, and any other applicable dimensional regulation if the board finds that the adjustment is necessary to accommodate the density increase and that it is consistent with good planning practice. Any adjustments to the dimensional regulations shall be shown in tabular format on the final plat for the development.
2. Notwithstanding any provision elsewhere in this Title, in residential subdivisions, one two-family structure containing two low or moderate income dwelling units may be constructed in place of two low or moderate income single-family dwelling units on two lots.
B. Exemption from growth rate quotas and procedures. Low or moderate income dwelling units constructed pursuant to the requirements of this Chapter are not subject to any growth rate controls and procedures that may appear elsewhere in Title 18. Such dwelling units are subject to the phasing requirements of the land development and subdivision regulations. This exemption shall be considered a municipal subsidy.
C. Exemption from impact fees. Low or moderate income dwelling units constructed pursuant to the requirements of this Chapter are exempt from payment of the impact fee required by Chapter 18.33. This exemption shall be considered a municipal subsidy.
(Ord. dated 5-6-08; ord. dated 9-20-11; ord. dated 11-3-15)
A. Inclusionary unit location and appearance. Inclusionary units shall be integrated within the development to the degree feasible, and not separately segregated. The exterior appearance of the inclusionary units shall be compatible with and, except for unit size, essentially indistinguishable from the others.
B. Number of bedrooms. No low or moderate income dwelling unit constructed pursuant to this Chapter shall have fewer than two bedrooms. This requirement shall not apply to low or moderate income dwelling units constructed by public or non-profit agencies.
C. Timing of occupancy. Low or moderate income units shall be constructed at approximately the same rate as market-rate units. At no time shall the percentage of market-rate units for which certificates of use and occupancy have been issued exceed the percentage of low or moderate income units for which certificates of use and occupancy have been issued by more than 25%. The last certificate of use and occupancy for a market-rate unit shall not be issued until certificates of use and occupancy have been issued for all of the low or moderate income units. These requirements apply to low or moderate income units being constructed off site, as well as those being constructed on site.
(Ord. dated 5-6-08; ord. dated 11-3-15)
A. Plan required. The applicant shall submit a marketing and resident selection plan for the low or moderate income units that describes how the units will be marketed and how potential home buyers or tenants will be selected. The planning board shall approve the plan before it is implemented.
B. Local preference. In the selection of buyers or lessees of low or moderate income dwelling units, priority shall be given to the greatest extent permitted by law to households containing current residents of the town, persons currently employed in the town, or persons who have children, parents, or siblings who are resident in the town.
(Ord. dated 5-6-08; ord. dated 11-3-15)
When a subdivision or land development project that creates fewer than six additional dwelling units is approved on a portion of a parcel of land, leaving another portion of the same parcel undeveloped, the portion left undeveloped shall not be subdivided or developed for residential use or mixed use within fifteen (15) years of Final Approval of the first development unless the undeveloped portion is subject to the inclusionary requirements of this Chapter. The number of inclusionary units required in the later development shall be calculated as if the earlier development were part of it. This provision does not apply when an entire parcel receives Master Plan approval and is developed in phases.
(Ord. dated 5-6-08; ord. dated 11-3-15)
REFERENCES
R.I. Gen. Laws §§ 45-24-33(a)(23), 45-24-46.1.