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SB 2895

AN ACT RELATING TO TOWNS AND CITIES -- ZONING ORDINANCES

2026 Regular Session Introduced by David Tikoian

Rhode Island requires inclusionary zoning for new developments, mandating at least 15% affordable units (30-year protections) with options for on-site, off-site, or fee-in-lieu con

06/09/2026 Senate read and passed
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WeVote Research Nonpartisan
Bill Summary · SB 2895

Summary of SB 2895 (2026) – Rhode Island

Main purpose

  • Establishes and clarifies inclusionary zoning requirements in Rhode Island towns and cities, with particular provisions for affordable housing production, density bonuses, and optional fee-in-lieu arrangements.
  • Notably, it creates a framework for municipalities to mandate affordable units in new developments, while allowing alternatives (on/off-site production, land donation, or fees) and offering density incentives.

Key provisions and changes

  • Inclusionary zoning requirements (a)

    • Any zoning ordinance mandating affordable housing must ensure:
    • The affordable units meet the definition in Rhode Island law.
    • At least 15% of total units in the development are affordable.
    • The affordable units remain affordable for at least 30 years via land lease and/or deed restrictions enforceable by the municipality and state.
    • The minimum threshold to trigger inclusion must be specified, but cannot exceed 10 dwelling units.
    • The total number of units may be less than 15% affordable after applying the density bonus (subsection c).

  • On-site vs. alternative production (b)

    • Affordable units may be built on-site or produced via alternatives, including off-site construction/rehabilitation, land donation, or a fee in lieu.

  • Density bonuses, incentives, and subsidies (c)

    • For projects subject to inclusionary zoning, municipalities must allow:
    • A density bonus: 1 market-rate unit for each affordable unit.
    • Reduction of minimum lot area per dwelling unit to accommodate the bonus.
    • Municipalities may offer larger density bonuses based on higher affordable housing percentages.
    • The total unit count includes the original units plus bonus units.
    • Local rules must provide for reasonable relief from dimensional requirements to achieve the bonus.
    • Municipalities may offer additional zoning incentives and/or subsidies (per § 45-53-3) to offset costs of affordable units.
    • Smithfield is specifically exempted to determine its density bonuses based on its underlying zoning (a special case).

  • Exemption when density is limited by state regulations (a)

    • Inclusionary zoning requirements do not apply where state agency density limits (e.g., CRMC/DEM) prevent the use of the density bonus.

  • Fee-in-lieu provisions (d)

    • If a developer opts for a fee in lieu:
    • Per-unit fee is calculated as the difference between:
      • The maximum affordable sales price for a family of four at 80% of area median income (as determined by HUD annually), and
      • The average per-unit development cost of affordable housing (determined annually based on RI housing finance costs over the prior 3 years, excluding preserved units).
    • The per-unit fee cannot be less than $40,000.
    • Use of fee-in-lieu:
    • Funds must be placed in restricted accounts for creating/developing affordable housing targeting ≤80% of area median income.
    • A local affordable housing board must oversee the funds and allocate within 3 years.
    • Housing elements must be included in the local comprehensive plan, with an ordinance detailing the allocation process.

  • In-lieu transfer option (e)

    • Municipalities may transfer in-lieu payments to the Executive Office of Housing if not allocated within three years (including any funds as of July 1, 2025) to continue developing affordable housing; funds go to the Housing Production Fund per § 42-128-2.1.

  • Section deletion (f)

    • A previously deleted subsection remains deleted.

Who would be affected

  • Municipalities: must implement inclusionary zoning provisions, set thresholds, manage density bonuses, and regulate in-lieu payments.
  • Developers and property owners: potential obligation to include affordable units or make in-lieu payments; eligible for density bonuses and incentives.
  • Residents/households: potential increase in affordable housing units and access to housing at ≤80% of area median income.
  • Smithfield: special provision allowing density bonuses to be determined by its own underlying zoning framework.

Procedural and timeline aspects

  • Effective date: Upon passage.
  • Implementation timeline for in-lieu funds: municipalities must allocate funds within 3 years of collection.
  • Administrative review: certain fee-in-lieu proposals require planning board/commission review (not eligible for administrative review under the Land Development and Subdivision Review Act).

Notes

  • The bill emphasizes affordability duration (30 years) and a clear minimum affordable unit share (15%), with a ceiling on triggering thresholds (no more than 10 units to trigger inclusion).
  • It provides a mix of on-site production, off-site alternatives, and monetary contributions to support affordable housing development.
  • Special case for Smithfield and the explicit allowance of density considerations tied to existing zoning rules.

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

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