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August 25, 2011 1Volume 51 No. 16 Zoning Bulletin <br />The Town responded that it had such authority: The Town had ad- <br />opted a comprehensive plan in order to attain its General Assembly - <br />mandated affordable housing goal, pursuant to the Rhode Island Low <br />and Moderate Income Housing Act ("LMIHA"). That comprehensive <br />plan specifically stated the option to pay a fee -in -lieu of the required <br />number of affordable housing units. The state director of administration <br />approved that comprehensive plan. The Town then had adopted the sub- <br />ject ordinances to implement the state- approved plan. <br />A hearing justice entered final judgment in favor of the Town. <br />North End appealed. <br />DECISION: Vacated and matter remanded. <br />The Supreme Court of Rhode Island held that the Town "may not <br />legally impose a fee -in -lieu in the absence of enabling authority from <br />the General Assembly." Although the General Assembly had autho- <br />rized analogous development impact fees and open space fees, it had <br />not authorized a fee -in -lieu of undertaking the construction of afford- <br />able housing. The court found that the LMIHA was "completely si- <br />lent with respect to the subject of fees-in-lieu." Accordingly, the court <br />directed the superior court to issue an order enjoining the Town from <br />imposing, assessing, or collecting the fee -in -lieu of construction of af- <br />fordable housing. <br />In reaching its conclusion, the court explained that a municipality <br />that had adopted a home rule charter could exercise its own authority <br />over purely local concerns. In this case, fees -in -lieu of affordable hous- <br />ing construction affected state concerns, not just local concerns. This <br />was because "[t]he development of affordable housing is a critical state- <br />wide need." Therefore, as with the analogous development impact fees <br />and open space fees, specific enabling legislation first had to be enacted <br />by the General Assembly before municipalities in Rhode Island could <br />impose such fees -in -lieu, said the court. This, explained the court, al- <br />lows for the "desirability and possible effects of the imposition of such <br />fees -in -lieu [to be] evaluated in the context of statewide affordable <br />housing policy." <br />In short, the court concluded that: Rhode Island municipalities cannot <br />impose fees -in -lieu of affordable housing construction because the State <br />General Assembly must first authorize them to do so and it has not. <br />See also: Town of East Greenwich v. O'Neil, 617 A.2d 104 (R.I. 1992). <br />Case Note: The court acknowledged "the need for municipali- <br />ties to have some degree of flexibility in enacting local legislation <br />6 © 2011 Thomson Reuters <br />