AN ACT RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES

This bill amends Rhode Island's zoning laws to allow the town of Smithfield to set its own density bonuses for affordable housing projects based on its specific zoning requirements. The legislation establishes statewide inclusionary zoning standards requiring at least 15% of new development units to remain affordable for 30 years, while permitting municipalities to offer density bonuses like additional market-rate units or reduced lot sizes in exchange for providing affordable housing. Developers can choose to build affordable units on-site, use alternative methods like off-site construction or land donations, or pay a fee-in-lieu that funds affordable housing projects elsewhere in the municipality. The bill also specifies that fee-in-lieu payments must be used exclusively for affordable housing serving families earning 80% or less of the area median income and outlines how municipalities must manage and allocate these funds.