A.
Findings. A diverse housing stock is necessary in
this community in order to serve people of all income levels. Based
upon the review and consideration of the recent Lincoln Affordable
Housing Production Plan, it has become clear that the provisions of
this article are necessary in order to preserve the diversity of housing
opportunities for the residents and working people of Lincoln.
(1)
The program defined by this article is necessary to
provide continuing housing opportunities for low- and moderate-income
persons in Lincoln. It is necessary to help maintain a diverse housing
stock and to allow residents and employees of Lincoln to have better
access to housing and jobs. The local and statewide trend of increasing
housing costs as identified in the Lincoln Affordable Housing Production
Plan will, without intervention, result in inadequate supplies of
affordable housing for low- and moderate-income residents and employees.
(2)
Remaining land for residential development in Lincoln
is limited. It is essential that at least 10% of such land be developed
into housing units affordable to low- and moderate-income households.
The primary objective of this article is to obtain affordable rental
and homeownership units within qualified subdivisions or land development
projects. Some provisions of this article provide for alternatives
to the production of such on-site units. Those provisions recognize
the fact that individual sites and economic factors can make on-site
production less desirable than the alternatives for particular developers.
However, the intent and preference of this article is that wherever
possible, affordable units constructed pursuant to this article be
located on-site.
B.
Purpose. The purposes of this article are to:
(1)
Implement the Lincoln Affordable Housing Production
Plan, and the Housing Element of the Lincoln Comprehensive Plan;
(2)
Promote the construction of rental and homeownership
housing that is affordable for the low- and moderate-income households
of Lincoln;
(3)
Maintain a balanced community that provides housing
for people of all income levels; and
(4)
Help Lincoln achieve the ten-percent low-moderate
income housing goal set by the State of Rhode Island.
C.
Definitions. The definitions contained in Article II shall apply to the provisions of this article.
D.
Inclusionary units or in-lieu-of fee required.
(1)
All residential development projects shall include the number of inclusionary units required under Subsection E or, if applicable, shall pay the in-lieu-of fee required under Subsection N. No building permits shall be granted for a residential development project without compliance with this article.
(2)
Exemptions. This article shall not apply to the reconstruction
of any dwelling units that were destroyed by fire, flood, earthquake
or other act of nature.
(3)
It is permissible to apply for a subdivision of four
lots or fewer where one of the lots has an area three times or more
greater than the area required for that zone. However, further subdivision
of the larger lot will be treated as a major subdivision and shall
be subject to the requirements set out in this article.
E.
Number of inclusionary units. Any proposed residential
development containing five or more dwelling units is required to
include at least 20% of the total number of dwelling units within
the proposed development as affordable units. The inclusionary units
must be affordable for a minimum of 30 years through a deed restriction
or through being held in a community land trust. The Town of Lincoln
prefers that inclusionary units be built on site. However, developers
who satisfactorily demonstrate to the Planning Board that building
the inclusionary units on site is infeasible may request to make a
payment in-lieu-of fee or to build the inclusionary units off site.
The Town, at the applicant's expense, may have an independent real
estate consultant determine feasibility of building the inclusionary
units on site. Developers must round up to the next highest number
for fractional units. As an alternative, an in-lieu-of fee may be
paid for the fractional unit. The amount of the in-lieu-of fee will
be in direct proportion to the percentage (out to two decimal places)
of a single unit that is represented by the fractional remainder of
the above inclusionary unit calculation.
F.
Density bonus. All projects shall be entitled to a
density increase of 25% in accordance with the provisions of this
section. This density bonus qualifies as a locally provided subsidy.
Any project shall be entitled to an increase in the maximum lot coverage
allowed for the site on which the project is located following the
calculation of density, lot coverage, and setbacks. Any request for
other density increases beyond 25% will be strictly considered under
a comprehensive permit.
G.
Unit mix. The unit mix (i.e., the number of bedrooms
per unit) of the inclusionary units shall be in the same proportion
as the unit mix of the market-rate units. If only one inclusionary
unit is required and the other units in the project have various bedroom
numbers, the number of bedrooms for that unit will be an average of
the number of bedrooms located in the market-rate units in the qualified
development rounded to the nearest whole number.
H.
Location of inclusionary units. Except as provided
for in this article:
I.
Unit types permitted in inclusionary subdivisions or land development projects. The Town of Lincoln encourages developers of inclusionary subdivisions or land development projects to provide a variety of housing types in the subdivision. Permitted housing types for an inclusionary subdivision include the following: single-family and duplex. Townhouse style buildings are also permitted in an inclusionary development. Each inclusionary unit in a single-family development will have the appearance of a single-family home pursuant to design guidelines in Subsection J.
J.
Design guidelines.
(1)
The exterior appearance of the inclusionary units
in any development shall be visually compatible with the market-rate
units in the development. External building materials and finishes
shall be substantially the same in type for inclusionary units as
for market-rate units and have the appearance of a single-family home.
(2)
The interior appearance and finishes of the inclusionary
units may differ from market-rate units in regard to interior finishes
and gross floor areas, provided that the bedroom combination of affordable
units shall be in proportion to the bedroom combination of the market-rate
units.
K.
Inclusionary housing agreement at preliminary plan.
(1)
Approval. The inclusionary housing agreement must
be approved before the developer receives preliminary plan approval.
(2)
Agreements required. Applications for residential
development projects seeking preliminary plan approval shall be approved
only concurrently with the approval of an inclusionary housing agreement
pursuant to this article. This section shall not apply should the
developer choose to pay an in-lieu-of fee.
(3)
Information in the inclusionary housing agreement:
(a)
The location, structure, proposed tenure, and
size of the proposed market-rate and inclusionary units.
(b)
The calculations used to determine the number
of required inclusionary units.
(c)
A site plan depicting the location of the inclusionary
units.
(d)
The mechanisms that will be used to assure the
inclusionary units remain affordable for the required term.
(e)
For phased developments, a phasing plan.
(f)
A marketing plan for the process by which qualified
households will be reviewed and selected to either purchase or rent
the affordable units.
(g)
Any other information reasonably requested by
the Planning Board to assure compliance with the purposes and provisions
of this section.
(4)
The Town will provide its preferred format for the
inclusionary housing agreement upon request.
L.
Timing of construction and assurance.
(1)
Phasing of construction. The inclusionary housing
agreement shall include a phasing plan (if a phased development) that
provides for the timely and integrated development of the inclusionary
units as the proposed project is built out. The phasing plan shall
provide for the development of the affordable housing units concurrently
with the development of the market-rate units. Building permits shall
be issued for the qualified development project based upon the phasing
plan. The phasing plan may be adjusted when necessary in order to
account for the different financing and funding environments, economies
of scale, and infrastructure needs applicable to development of the
market-rate and affordable housing units. The phasing plans shall
also provide that the affordable housing units shall not be the last
units built in any development.
(2)
Assurance of completion of inclusionary units. It
is the responsibility of the original developer to ensure development
of any required inclusionary units prior to the assigning or conveying
of any subdivided lot and/or dwelling unit. A developer must either
construct the required inclusionary units prior to construction of
any market-rate units or obtain a surety bond in an amount not less
than 1.5 times the amount of the established cash in-lieu-of fee for
each required inclusionary unit. The surety bond shall be held in
escrow by the Town until such time as the inclusionary units are constructed.
The Town of Lincoln prefers that inclusionary units be built prior
to or concurrent with the market-rate units.
M.
Off-site construction of inclusionary units. Inclusionary
units may be constructed off site only upon a determination by the
Planning Board that on-site construction is infeasible. If this option
is chosen, then the off-site inclusionary units must be constructed
prior to or concurrently with the construction of the proposed market-rate
project. The inclusionary unit size and count must meet the same requirements
as if the inclusionary units were constructed on site. If subdivision
or land development project approval of the proposed off site location
is not required, no certificate of occupancy will be issued for any
corresponding market-rate units prior to the inclusionary unit construction
completion or payment of the required in-lieu-of fees. Planning Board
approval of the agreement to build off-site inclusionary units is
required.
N.
In-lieu-of fees.
(1)
The Town of Lincoln prefers that inclusionary units be constructed on site. To that end, developers must prove that providing the inclusionary units on site is infeasible to the Planning Board (as provided for in this article, if approved). Planning Board approval of the agreement to pay an in-lieu-of fee in order to providing inclusionary units in a residential development is required. The amount of the fee in lieu of providing inclusionary units shall be determined using the fee schedule calculation set forth in Subsection N(3). For projects constructed in phases, in-lieu-of fees shall be paid prior to the issuance of each building permit in the proportion that the phase bears to the overall project. The in-lieu-of fees shall be paid into the Affordable Housing Trust Fund as established and administrated by the Town of Lincoln's Town Council or its designee.
(2)
For projects to be developed on subdivided lots, in-lieu-of
fees shall be paid by the developer prior to issuance of final subdivision
approval or, in such cases where subdivision approval is not required,
prior to issuance of a building permit for the project or as determined
by the project's adopted conditions of approval.
(3)
An in-lieu-of fee is due from developers of residential
projects where payment of affordable housing in-lieu-of fees and/or
fractional unit fees was included as a condition of project approval.
The fee amount due per each whole affordable dwelling unit required
shall equal the sum of the cost of the land as assessed by the Town
at the time of subdivision application and the cost of development,
including construction, of an affordable unit on the same site as
the proposed market-rate units. The development cost used to complete
in-lieu-of fee calculations shall be determined by Rhode Island Housing.
Projects with fractional unit requirements shall pay an amount equal
to the applicable in-lieu-of fee amount for a whole unit multiplied
by the fractional requirement calculated out to two decimal places.
This in-lieu-of fee shall be reviewed and may be adjusted as necessary
by the Town of Lincoln's Town Council.
O.
Requirements.
(1)
Manner of compliance. All permanently affordable obligations
of rental housing projects shall be met through on-site units, unless
the developer shows that developing the approved inclusionary units
on site is financially infeasible. All rental inclusionary units must
be restricted as affordable for a minimum of 30 years. The Town's
preferred affordability period is 99 years for all projects.
(2)
Determination of rental rates for affordable units;
maximum rents. Rents charged for inclusionary rental units in any
project must, on average, be affordable to households earning 80%
or less of the area median income (AMI) as determined by the United
States Department of Housing and Urban Development (HUD). No affordable
unit may rent at a rate which exceeds affordability for a household
earning 50% to 80% of AMI as determined by HUD. Up-to-date AMI statistics
may be obtained from Rhode Island Housing at www.rihousing.com.
(3)
Sales prices for affordable units. The maximum sales
price for an affordable ownership unit shall be set by Rhode Island
Housing according to its accepted formula. The mix of unit sales prices
will seek to be consistent with the goals of the Town of Lincoln's
Affordable Housing Plan. Within a development, the average price charged
for affordable ownership units in any project shall be either:
(4)
Approved purchasers of affordable units. A developer
or owner shall select an eligible purchaser after completing a good-faith
marketing and selection process, as provided or approved by the Town
of Lincoln. Upon request, the Town may provide the developer or owner
of an affordable unit with a list of households certified by the Town
as eligible to purchase the unit. However, a developer or property
owner may select an income eligible purchaser who is not on a furnished
list so long as the Town can verify the purchaser's income and asset
eligibility and the unit is sold at an affordable price as described
in this chapter.
(5)
Purchasers of affordable units required to reside
in those units. A purchaser of an affordable unit shall occupy the
purchased unit as their primary residence. No person shall rent an
affordable ownership unit. Ownership units must remain exclusively
owner-occupied for the entire required affordability period.
(6)
Resale restrictions applicable to affordable units.
All affordable ownership units as developed under this article shall
be subject to the following restrictions: A seller of an affordable
unit must select a low-income purchaser by a method that complies
with a Town-approved good-faith marketing and selection process. At
the request of a seller, the Town will provide the seller with the
description of a process that meets this requirement. Upon request,
the Town may provide the seller with a list of households certified
by the Town as income eligible to purchase the unit. All purchasers
of affordable units shall be part of an income eligible household.
(7)
Resale price for affordable units.
(a)
Any unit originally sold to a family earning 80% or less of the AMI at the time of purchase shall have a resale price not exceeding that which is affordable to a household earning 80% or less of the AMI as defined by HUD at the time of the sale and depending on subsidy as described in the above Subsection O(3).
(b)
Any unit originally sold to a family earning more than 80% up to 120% of the AMI at the time of purchase shall have a resale price not exceeding that which is affordable to a household earning more than 80% up to 120% of the AMI as defined by HUD at the time of the sale and depending on subsidy as described in the above Subsection O(3).
(8)
Deed restriction or incorporation into a community
land trust required. No person offering an affordable unit for sale
shall fail to lawfully reference in the grant deed conveying title
of any such unit and recorded with the Town's Land Evidence Records
a covenant or declaration of restrictions in a form approved by the
Town. Such covenant or declaration of restrictions shall reference
applicable contractual arrangements, restrictive covenants, and resale
restrictions as are necessary to carry out the purposes of this article.
(9)
Requirements may be amended in furtherance of the
purposes of this section.
P.
Monitoring. The Lincoln Housing Authority, or another
selected agency as determined by the Town of Lincoln's Town Council,
will be designated as the monitoring agent to ensure compliance with
the requirements of this article.
