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SB 2894

AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING RESOURCES ACT OF 1998

2026 Regular Session Introduced by Lou DiPalma and 1 co-sponsor

The bill creates a statewide five-year strategic plan to produce and rehabilitate year-round affordable housing, with higher-density development, inclusionary zoning, and a four-ye

05/12/2026 Committee recommended measure be held for further study
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Bill Summary · SB 2894

Overview

SB 2894 (Rhode Island) proposes amendments to the Rhode Island Housing Resources Act of 1998 to advance a comprehensive, five-year strategic approach to housing production and rehabilitation. The bill emphasizes a state-wide housing strategy, updated planning, affordable housing standards, and pilot underwriting reforms to expand year-round housing options for a range of populations, including low- and moderate-income households, seniors, students, and vulnerable groups.

Main purpose and intent

  • Establish a continuing, statewide framework to produce and rehabilitate housing to meet diverse needs across cities and towns.
  • Create a five-year strategic housing plan aligned with the state guide plan, with measurable goals and implementation steps.
  • Encourage higher-density development, mixed-use projects, and inclusionary zoning to improve housing affordability and availability.
  • Address specific housing needs for seniors, workers, students, people with disabilities, and vulnerable populations.
  • Allow a targeted pilot program to pilot alternative underwriting criteria for moderate-income housing to expand for-sale affordable units.

Key provisions and changes

  • Section 42-128-8.1 amended to recast the section as the Comprehensive Housing Production and Rehabilitation Act of 2004, including:
    • Foundational findings underscoring the need for a state-wide, adaptable housing strategy responsive to local conditions and growth.
    • A statutory requirement for a five-year strategic plan for housing, developed by the Executive Office of Housing in coordination with the statewide planning program, to be adopted as part of the state guide plan.
    • Plan components to include quantitative goals, intermediate milestones, implementation activities, and standards for production/rehabilitation of year-round housing, addressing:
    • Housing for older residents
    • Housing affordable to workers at various income levels
    • Student housing options
    • Rental housing for low- and very-low-income households
    • Housing for persons with disabilities
    • Permanent housing and shelters for vulnerable populations
    • Definitions and clarifications for terms: affordable housing, affordable housing plan, moderate-income household, seasonal housing, year-round housing, and related terms.
    • Requirements for towns and cities to align comprehensive plans with the strategic plan, with flexibility for towns already operating affordable housing plans (deemed compliant until the next required update).
    • Guidelines (to be issued by the Executive Office of Housing with State Planning Council approval) for higher-density development, including:
    • Inclusionary zoning with density bonuses and subsidies
    • Mixed-use development that considers infrastructure, environmental, and community constraints
    • A Geographic Information System (GIS) map maintained by the statewide planning program to identify suitable areas for higher-density development.
    • A four-year pilot program (sunsetting December 31, 2029) to test alternative underwriting criteria for for-sale affordable housing targeted at moderate-income households (defined as 100%-120% of area median income, adjusted for MSA and household size). The pilot caps alternative underwriting at 38% of gross household income and requires annual reporting on progress and outcomes.
    • Clarifications on measurement and credit toward affordable housing, including special provisions for New Shoreham (Block Island) and Tiverton (manufactured homes in age-restricted communities) as described in the explanatory notes.
  • Section 2 states the act takes effect upon passage.

Who/what is affected

  • State agencies: Executive Office of Housing and the Statewide Planning Program (charged with developing the five-year strategic plan and maintaining GIS mapping; issuing guidelines).
  • Local governments: Cities and towns must bring comprehensive plans into conformity with the strategic plan; those with approved affordable housing plans under existing statutes may be deemed compliant temporarily.
  • Housing developers and financiers: Encouraged to pursue higher-density, mixed-use, and inclusionary projects; may participate in the pilot underwriting program.
  • Residents and households: Aims to increase available affordable housing options across income levels, including seniors, workers, students, and vulnerable populations.
  • Specific municipalities: Tiverton and New Shoreham have targeted provisions related to manufactured homes and counting toward affordable housing goals.

Procedural and timeline aspects

  • Five-year strategic plan: To be developed every five years and adopted as part of the state guide plan; updated at least every five years thereafter.
  • Town/comprehensive plan alignment: Towns must align local plans with the strategic plan according to the timetable in § 45-22.2-10(f); towns with approved affordable housing plans may be deemed compliant temporarily.
  • Guidelines: Issued at least every five years, covering higher-density development, inclusionary zoning, and mixed-use development considerations.
  • Pilot program: A four-year initiative (effective upon passage) ending December 31, 2029, with annual reporting on status and outcomes.
  • Effective date: The act takes effect upon passage.

Potential impact considerations

  • Clarifies and broadens the framework for affordable housing production and rehabilitation at the state level.
  • Encourages local capacity-building through updated planning requirements and density/inclusionary tools.
  • Introduces a pilot funding/underwriting approach to broaden for-sale affordable housing opportunities for moderate-income households.
  • Balances housing goals with infrastructure, environmental, and community context considerations via guidelines and GIS mapping.

Compiled from official sources — confirm details with the bill’s official record.

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