Chapter 34 - TAXATION

Part of the Code of Ordinances of Central Falls, RI.

Local law · Updated December 8, 2025 · 1,477 sections

The text

Footnotes:

--- (1) --- State Law reference— Taxation, G.L. 1956, § 44-1-1 et seq.

ARTICLE I. - IN GENERAL#

Sec. 34-1. - Current taxes required.#

Any applicant for a permit, license, or any consideration before the city council or any board or commission must show proof of being current on their municipal taxes or, if not, show written approval from the finance director, before being considered or approved for such permit, license or consideration.

(Ord. of 3-11-2019(2), § 1)

Sec. 34-2. - Liens included in price demanded at tax sale.#

Pursuant to R.I.G.L. § 44-9-8, for any property put up for tax sale, the finance director shall include any and all municipal liens on said property in the price demanded for said property at tax sale. This section shall not be construed to limit the finance director's powers pursuant to R.I.G.L. § 44-9-8 to include any other assessments, rates, interest, and necessary intervening charges in the price demanded for any property at tax sale.

(Ord. of 3-11-2019(2), § 1)

Secs. 34-3—34-18. - Reserved.#

ARTICLE II. - PROPERTY TAX CLASSIFICATION SYSTEM#

Footnotes:

--- (2) --- State Law reference— Power to tax property, G.L. 1956, § 45-2-2.

Sec. 34-19. - Established.#

Pursuant to G.L. 1956, § 44-5-20.01-04, there is hereby established a property tax classification system in the city. (1)

"Class 1" includes residential property which is owner-occupied dwellings of no more than five units and which is property used or held for human habitation, including rooming houses and mobile homes with facilities designed and used for living, sleeping, cooking, and eating on a nontransient basis. Eligibility for the owner-occupied tax classification shall be determined by compliance with G.L. 1956, § 44-3-34 and relevant city ordinances. This property includes accessory land, buildings, or improvements incidental to the habitation and used exclusively by the residents of the property or their guests. This property does not include a hotel, motel, commercial, or industrial property.

(2)

"Class 2" includes residential property which is owner-occupied dwellings of more than five units and nonowner-occupied dwellings, including the residential portion of properties for mixed use as residential and commercial properties, and which is property used or held for human habitation, including rooming houses and mobile homes with facilities designed and used for living, sleeping, cooking, and eating on a nontransient basis. This property includes accessory land, buildings, or improvements incidental to the habitation and used exclusively by the residents of the property or their guests. This property includes open space including "farmland," "forestland," and "open space land" as defined in accordance with G.L. 1956, § 44-27-2. This property does not include a hotel, motel, commercial, or industrial property.

(3)

"Class 3" includes personal property, previously subject to tax, and includes all goods, chattels, and effects, wherever they may be, except those that are exempt from taxation by the laws of the United States or of this state.

(4)

"Class 4" includes every vehicle and trailer registered under chapter 3 of title 31.

(5)

"Class 5" includes property used commercially, including the commercial portion of properties for mixed use as residential and commercial properties, or for industrial manufacturing.

The tax rate for Class 2 shall not exceed by two times, the tax rate for Class 1; the tax rate for Class 5 shall not exceed by three times, the tax rate for Class 1; and the tax rate for Class 3 shall remain at the fixed rate of $38.33 per $1,000.00 that was present at the passage of G.L. 1956, § 44-5-12.2.

(Code 1994, § 36-26; Ord. of 2-19-1991, § I; Ord. of 6-9-2025(1), § 1)

Secs. 34-20—34-41. - Reserved.#

ARTICLE III. - PROPERTY TAX EXEMPTIONS#

Footnotes:

--- (3) --- State Law reference— Property tax exemptions, G.L. 1956, § 44-3-3.

Sec. 34-42. - Persons 65 years of age or over.#

(a)

The tax assessor is hereby authorized to grant up to a $7,500.00 exemption from valuation of real estate owned and occupied by persons 65 years of age or over.

(b)

Applications for exemptions under this section filed on or before March 15 of the year thereafter and approved by the assessor prior to the legal certification of the tax roll shall be accepted by the tax collector and credit for such exemption shall be applied to the assessment of December 31 of the year preceding the date of such filing and approval.

(c)

Tax exemptions authorized by this section shall be effective from and after December 31, 1993. Any applications for exemptions filed after January 31 of any year and subsequently approved by the assessor shall not be operative until the year succeeding such filing and the exemptions credit shall become effective against the assessment made December 31 following the date of filing.

(Code 1994, § 36-51; Ord. of 5-30-1984(3), §§ 1—6; Ord. of 6-1-1994; Ord. of 6-11-2007(2); Ord. of 5-16-2011(2))

Sec. 34-43. - Tax exemptions for veterans.#

(a)

The tax assessor is hereby authorized to grant up to a $7,500.00 real property, tangible personal property or motor vehicle exemption from valuations to each person who served in the military or naval service of the United States in G.L. 1956, § 44-3-4(1).

(b)

Such exemption shall be granted upon due evidence that he is so entitled.

(Code 1994, § 36-52; Ord. of 5-30-1984(2), § 1; Ord. of 6-1-1994; Ord. of 6-11-2007(3); Ord. of 4-18-2011(3))

Sec. 34-44. - Tax exemptions for prisoners of war.#

The tax assessor is hereby authorized to grant a $15,000.00 real property, tangible personal property, or motor vehicle exemption from valuation of property located in the city for any veteran of the military or naval service of the United States of America who has been or who shall be classified as, or determined to be, a prisoner of war by the Veterans Administration of the United States. Such exemption shall be granted upon due evidence that such person is so entitled.

(Code 1994, § 36-53; Ord. of 6-11-1987(2), § 1)

State Law reference— Authority to so provide, G.L. 1956, § 44-3-4(e).

Sec. 34-45. - Homestead exemption.#

(a)

The tax assessor is hereby authorized to provide that the property of each person who shall be a domiciled resident of the city on or before December 31 of each year and which property is the principal residence of said person shall be exempt from taxation not to exceed $60,000.00 of assessed valuation. The exemption is applied to residential property and includes property with up to a total of five residential units and may include up to one commercial or professional use unit as part of the total of five assessed units.

(b)

Each person upon written or online application for such exemption shall provide by means of a sworn statement and with three forms of identification bearing the address of the applicant to the assessor clear and convincing evidence to establish his or her legal residence at the property subject to the exemption. Such application shall also include sworn statements affirming the following:

(1)

Neither the applicant nor the applicant's spouse is receiving a homestead exemption or an owner-occupied rate for another piece of real property, located elsewhere in the State of Rhode Island, or in any other state of the United States, for the same period of time the owner is seeking the homestead exemption for property owned in Central Falls, unless during that time the owner is either legally separated or divorced from the spouse during some or all of the period in which they are claiming more than one homestead exemption; and

(2)

The applicant, and the applicant's spouse, are paying the Central Falls excise tax due on each and every motor vehicle owned by either one when that vehicle is garaged more than 30 days in the State of Rhode Island, unless (a) the vehicle is registered in the name of the applicant's spouse, and (b) the applicant and the spouse are either legally separated or divorced; and

(3)

The applicant has filed with the tax assessor a current listing of all motor vehicles with foreign registrations that the applicant owns as required by G.L. 1956, § 31-7-1. If a homeowner currently receiving the homestead has at least one motor vehicle registered to the same address as the property receiving the exemption, then the tax assessor shall presume that these requirements have been complied with; however, the tax assessor shall have the authority to investigate whether other circumstances (such as the ownership of additional motor vehicles registered elsewhere) indicate noncompliance that overcomes this presumption. If a homeowner currently receiving the homestead exemption does not have any motor vehicles registered to the same address, the tax assessor may take appropriate action to ascertain compliance with these requirements and to revoke the homestead exemption, both prospectively and retroactively as necessary to the enactment of this section; and

(4)

The applicant does not have a judgment of the municipal court or a lien against the subject property that remains unpaid or unsatisfied.

(c)

The tax assessor may require annual or regular re-certification of the requirements of the application. If an applicant knowingly gives misinformation as to ownership and/or occupancy of the real estate and/or ownership of motor vehicles on his/her application for a homestead exemption, the tax assessor may, in such event, remove the homestead exemption and recalculate the tax for the period in question and, in addition, charge the taxpayer the maximum interest permitted by law. The tax assessor may refer the matter to the city solicitor for potential prosecution. If the taxpayer provides incorrect information, knowingly or not, the tax assessor may remove the homestead exemption and may impose back taxes up to the full amount owed for the period in question.

(d)

In the event that the property subject to such exemption should be sold or otherwise transferred during the year for which the exemption is claimed to a person who shall not qualify for such exemption, such exemption shall be deemed void and the seller or transferor shall be liable to the city for reimbursement of any tax benefit received as a result of the exemption.

(e)

If the property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the assessor, upon approval of the city council, may provide for a proration of the homestead exemption in cases where title to a property passes from:

(1)

A person not entitled to claim an exemption to those who are entitled to claim an exemption; or

(2)

A person entitled to claim an exemption to those who are not entitled to claim an exemption.

(f)

The tax assessor is empowered to grant a hardship waiver to any of the aforementioned requirements as allowed by law and to promulgate any further rules and regulations which he/she deems necessary to carry out the intent and purpose of this section as it relates to the homestead exemption.

(Code 1994, § 36-55; Ord. of 6-30-1994, §§ 1—4; Ord. of 8-28-1995, §§ 1—3; Ord. of 6-28-2001; Ord. of 6-11-2007(1); Ord. of 6-30-2008; Ord. of 4-18-2011(4); Ord. of 10-29-2018(3), § 1; Ord. of 9-14-2020(1), § 1)

State Law reference— Authority to so provide, G.L. 1956, § 44-3-34.

Sec. 34-46. - Exemption for blind persons.#

The exemption for persons who are legally blind as defined by G.L. 1956, § 44-3-12 is hereby increased to $22,500.00.

(Code 1994, § 36-56; Ord. of 6-5-1995(2); Ord. of 3-14-2005(1))

Sec. 34-47. - Exemption on certain improvements.#

(a)

Any owner of any dwelling of one to eight units who makes any improvements or additions to his residential or rental property in an amount not to exceed $20,000.00 as determined by the tax assessor of the city shall be exempt from reassessment of property taxes on the improvements or addition until the next general city-wide reevaluation of property values by the tax assessor.

(b)

The property owner shall supply all necessary plans to the building official for the improvements or additions and shall pay all requisite building and other permitting fees as are now required by law.

(Code 1994, § 36-57; Ord. of 8-7-1995, §§ 1, 2)

State Law reference— Authority to so provide, G.L. 1956, § 44-5-12(a)(4).

Sec. 34-48. - Business tangible property exemption.#

(a)

Purpose. The purpose of this section is to provide relief for businesses, including small businesses, and to promote economic development, by providing a tangible property tax assessment exemption to businesses up to and including $20,000.00 pursuant to R.I.G.L. § 44-3-3(c).

(b)

Eligibility. Any business applying for this tangible tax exemption shall be deemed eligible upon complying with the following:

(1)

Complete and submit the tangible tax declaration form to the tax assessor annually. Any business not submitting a tangible tax declaration form will not be eligible for this exemption.

(2)

Declare taxable property to the assessor between December 31 and January 31. If the taxpayer is unable to make such a declaration within the prescribed time, they may submit written notice, prior to January 31, of intention to submit declaration by March 15. Failure to file a true and full account within the prescribed time eliminates the right to appeal and eliminates the eligibility for this exemption.

(3)

In his or her discretion, the assessor, upon a finding of good cause, may waive the requirements of sub-sections (1) and (2).

(c)

Exemption. Any business that timely and correctly files a complete tangible tax declaration form and in conformity with R.I.G.L. § 44-5-12.1 shall be provided with a tangible property tax assessment exemption up to and including $20,000.00.

(d)

Penalties. If a business is found to have incorrectly or falsely filed a tangible tax declaration, the assessor and finance director may seek penalties including, but not limited to, claw back and revocation of the exemption, up to a $500.00 fine for violation of this section and/or criminal referral to the appropriate law enforcement agency.

(Ord. of 6-12-2023(1), § 1)

Secs. 34-49—34-67. - Reserved.#

ARTICLE IV. - REAL ESTATE NONUTILIZATION TAX#

Footnotes:

--- (4) --- State Law reference— Real estate nonutilization tax, G.L. 1956, § 44-5.1-1 et seq.

Sec. 34-68. - Definitions.#

The following words, terms, and phrases when used in this article, have the meanings ascribed to them in this section, except in those instances where the context clearly indicates a different meaning:

Abutter means a neighbor whose property touches the property in question.

Actively marketed means: (1)

Good faith efforts by the owner of the property to obtain one or more occupants of the property. These good faith efforts may include, without limitations, one or more of the following:

Making substantial financial expenditures in comparison with the value of the property;

Listing the property for sale or lease, or both, with one or more real estate brokers, for a price and on terms, or for a rental that is realistic considering the fair market value or fair market rental value of the property; or

Advertising, using one or more signs on the property and at least one other medium, the availability of the property for sale or rental for a price and on terms, or at a rental that is realistic considering the fair market value or fair rental value of the property. Sporadic attempts to sell or lease the property during the privilege year may be viewed as not constituting a good faith marketing effort.

Continuously unoccupied means any property which is listed during the entire privilege year as vacant in the records of the city's department of minimum housing.

Development plan means a plan to rehabilitate a vacant and abandoned property within a set time frame for a use in conformance with the city's comprehensive plan.

New owner means any person who has purchased the vacant and abandoned property during the period subsequent to the notice of designation as vacant and abandoned.

Nonprofit housing organization means any organization exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code (26 USC 501(c)(3)) whose exempt purposes include the provision of affordable housing to low and moderate income households.

Privilege year means the 12-month period corresponding to the calendar year.

Reviewing entity means the municipal entity designated by the city or town pursuant to G.L. 1956, § 44-5.1-3.

Vacant and abandoned property means: (1)

A building that has remained continuously unoccupied during the privilege year or a lot, with no existing structure that is littered with trash and obviously abandoned;

(2)

In the case of property containing one or more buildings used in whole or in part for one or more dwelling units immediately prior to the time the property became vacant, has been under continuous designation as vacant by the city's department of minimum housing during the privilege year; or

(3)

In the case of property containing one or more buildings, none of which were used in whole or in part for one or more dwelling units immediately prior to the time the property became vacant, which has been under continuous citation by the city's department of code enforcement for violation of minimum housing code provisions relating to the health or safety of citizens during the privilege year.

(Code 1994, § 36-71; Ord. of 5-13-2002; Ord. of 6-12-2017(2), § 2)

State Law reference— Similar provisions, G.L. 1956, § 44-5.1-2.

Sec. 34-69. - Imposition.#

(a)

The city may annually impose upon any property which is determined to be vacant and abandoned a non-utilization tax measured by the assessed value of the real estate at the rate of $10.00 for each assessed $100.00 of assessed value of the real estate as most recently returned by the tax assessor of the city. The tax shall be in addition to any other taxes authorized by the general or public laws.

(b)

The code enforcement office within the city is designated as the city entity responsible for determining which properties are vacant and abandoned.

(c)

The department of code enforcement will survey all vacant properties and abandoned properties once during the privileged year, prior to March 15 of that privileged year.

(1)

The department of code enforcement shall, upon designation of a property as vacant and abandoned, cause the office of the city assessor to notify the owner in writing of the date of designation of the property as vacant and abandoned and the date upon which the non-utilization tax may be imposed.

(2)

The department of code enforcement shall file the notice of designation as vacant and abandoned with the recorder of deeds.

(3)

The property owner of record may notify the city's code enforcement office if a change in the property occurs. At any time after the property presents the appearance of being used and cared for, the city's code enforcement office may notify the assessor to remove the property from the list of properties on the real estate non-utilization tax list.

(4)

Any person or entity who, through foreclosure or otherwise, vacates or maintains vacant property shall notify the department of code enforcement.

(d)

The director of planning or other designated official is hereby designated as the reviewing officer to review and approve a development plan submitted by a nonprofit housing organization or an abutter.

(e)

The city tax assessor and/or the finance director is hereby empowered to abate the real estate non-utilization tax if it is imposed in error or if a nonprofit housing organization or an abutter acquires the property for rehabilitation and submits a development plan that complies with the provisions of G.L. 1956, § 44-5.1-3(i).

(Code 1994, § 36-72; Ord. of 5-13-2002; Ord. of 6-12-2017(2), § 2)

Sec. 34-70. - Exemptions.#

(a)

The non-utilization tax authorized by this section shall not be imposed on property owned by an abutter, a new owner, or a nonprofit housing organization if the assessor finds the following:

(1)

The abutter, new owner, or nonprofit housing organization submits a proposed development plan which has been approved by the director of planning and/or his/her designated official; and

(2)

The proposed development plan contains a reasonable timetable for the development or the reuse of the property; and

(3)

The director of planning and/or his/her designee determines that the proposed development plan contains a reasonable timetable for the development or reuse of the property; and

(4)

The director of planning and/or his/her designee determines that the proposed development plan is in accordance with the approved comprehensive plan of the city and approves it.

(b)

The director of planning and/or his/her designee shall deliver a copy of the approved development plan to the assessor who shall certify the property as exempt from the non-utilization tax.

(c)

Failure of the nonprofit housing organization, without good cause, to carry out the development or reuse of the property in accordance with the timetable set forth in the approved development plan shall result in the property being subject to the non-utilization tax as of the first date of assessment following the expiration of the timetable in the approved development plan.

(d)

The decision of the director of planning and/or his/her designee to deny approval of a development plan may be appealed to the city appeals board.

(Code 1994, § 36-73; Ord. of 5-13-2002; Ord. of 6-12-2017(2), § 2)

Sec. 34-71. - Property ceasing to be subject to tax.#

Upon a finding by the code enforcement office that the property is no longer vacant or abandoned, the property will cease to be subject to the non-utilization tax until such time as it again is determined to be vacant and abandoned. This section is not intended to modify any taxes which have already accrued.

(Code 1994, § 36-74; Ord. of 5-13-2002; Ord. of 6-12-2017(2), § 2)

Sec. 34-72. - Transfer of property.#

Notwithstanding the foregoing, any property that is vacant and abandoned and which is sold to a new owner, shall not be subject to this non-utilization tax for the first 60 days subsequent to the transfer of ownership to the new owner. Failure by the new owner to have the property removed from its vacant and abandoned status within that 60-day period will again subject that property to this tax.

(Code 1994, § 36-75; Ord. of 5-13-2002; Ord. of 6-12-2017(2), § 2)

Sec. 34-73. - Date on which taxes due.#

The tax imposed under authority of this article shall be due and payable in the same manner as other municipal taxes are due in the city.

(Code 1994, § 36-76; Ord. of 5-13-2002; Ord. of 6-12-2017(2), § 2)

Sec. 34-74. - Appeals.#

(a)

In any appeal from the imposition of the tax set forth in this article, the tax review board of the city shall find in favor of an appellant who shows the following with regard to the property assessed:

(1)

Was actively marketed during the privilege year;

(2)

Was occupied for substantial portions of the privilege year, notwithstanding its designation by the department of code enforcement; or

(3)

Was exempt pursuant to G.L. 1956, § 44-5.1-4(i) from the imposition of the tax.

(b)

Nothing contained in this section shall be deemed to enlarge or diminish any other right of appeal that an appellant may possess pursuant to the general or public laws, or city ordinances.

(Code 1994, § 36-77; Ord. of 5-13-2002; Ord. of 6-12-2017(2), § 2)

Sec. 34-75. - Severability.#

The provisions of this section are severable and if any provision, sentence, clause, section, or part of the section shall be held illegal, invalid, unconstitutional, or inapplicable to any person, circumstance, or time period, that illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, sentences, clauses, sections, or parts of the section or its application. It is hereby declared to be the legislative intent that this section would have been adopted had those provisions not been included or that person, circumstance, or time period been expressly excluded from its coverage.

(Ord. of 6-12-2017(2), § 2)

Secs. 34-76—34-79. - Reserved.#

ARTICLE V. - TAX STABILIZATIONS#

Sec. 34-80. - The economic expansion incentive program.#

(a)

Job creation incentive plan. Any business operating within city limits that, upon enactment of this section—economic expansion incentive program—creates and/or adds a minimum of five new permanent full-time or full-time equivalent jobs will be eligible for tax exemptions percentages for additional tangible personal property located at the business situs within the city limits under the following schedule:

Year 1 - 5—9 Jobs = 50%

Year 1 - 10—49 Jobs = 60%

Year 1 - 50+ Jobs = 70%

Year 2 - 5—9 Jobs = 40%

Year 2 - 10—49 Jobs = 50%

Year 2 - 50+ Jobs = 60%

Year 3 - 5—9 Jobs = 30%

Year 3 - 10—49 Jobs = 40%

Year 3 - 50+ Jobs = 50%

Year 4 - 5—9 Jobs = 20%

Year 4 - 10—49 Jobs = 30%

Year 4 - 50+ Jobs = 40%

Year 5 - 5—9 Jobs = 10%

Year 5 - 10—49 Jobs = 20%

Year 5 - 50+ Jobs = 30%

Year 6 - 5—9 Jobs = 10%

Year 6 - 10—49 Jobs = 20%

Year 6 - 50+ Jobs = 30%

Year 7 - 5—9 Jobs = 10%

Year 7 - 10—49 Jobs = 20%

Year 7 - 50+ Jobs = 30%

Year 8 - 5—9 Jobs = 10%

Year 8 - 10—49 Jobs = 20%

Year 8 - 50+ Jobs = 30%

Year 9 - 5—9 Jobs = 10%

Year 9 - 10—49 Jobs = 20%

Year 9 - 50+ Jobs = 30%

Year 10 - 5—9 Jobs = 10%

Year 10 - 10—49 Jobs = 20%

Year 10 - 50+ Jobs = 30%

(1)

Employers who fill at least 20 percent of newly created jobs with city residents will receive an additional five percent personal tangible property tax exemption for additional tangible personal property.

(2)

Employers who provide employees with a group medical insurance plan will receive an additional five percent personal tangible property tax exemption on additional tangible personal property.

(3)

Employers who pay annual salaries or wages to at least 20 percent of the newly created jobs rates of 250 percent of the minimum annual wage (currently $38,480.00) or more will receive an additional five percent tax exemption on additional tangible personal property.

(b)

Real property improvement plan. Any property owner renovating or upgrading any property within the city where such renovations or upgrades, approved by the building inspector, result in an increase in the assessed value of the structure, as determined by the tax assessor, shall be eligible for tax exemption percentages on the increased amount over a 12-year period under the following schedule:

Year 1 - 100%

Year 2 - 75%

Year 3 - 50%

Year 4 - 50%

Year 5 - 50%

Year 6 - 50%

Year 7 - 25%

Year 8 - 25%

Year 9 - 25%

Year 10 - 25%

Year 11 - 10%

Year 12 - 10%

(1)

In order to be eligible for the above-referenced real property tax exemption percentages the following criteria shall be applicable:

Qualifying property owner must invest in the new construction or substantial renovation of an existing structure on his or her property.

Qualifying vacant or abandoned properties are eligible for a separate, additional five percent exemption in addition to the above referenced exemption percentage for the duration of the exemption period.

Qualifying historic properties are eligible for a separate additional five percent exemption in addition to the above referenced exemption percentage for the duration of the exemption period.

Investments that would result in an increased assessed value of over $5,000,000.00 will receive a separate, additional five percent exemption in addition to the above referenced exemption percentage for the duration of the exemption period.

Investments that would result in an increased assessed value of over $10,000,000.00 will receive a separate, additional five percent exemption in addition to the above referenced exemption percentage for the duration of the exemption period.

Property owners must invest a minimum of $50,000.00 in cumulative building permits to qualify for the phase-in schedule.

Any eligibility criteria required in this section may be amended or waived jointly by the finance director and the planning director upon a showing of good cause and a finding that the development project is in the best interests of the city, that the benefit will assist the project come to fruition and that there are community benefits contained in the project including, but not limited to, preferences for local suppliers and vendors, the utilization of WBE and MBE contractors, the local hiring of Central Falls residents and the creation of affordable housing and/or home ownership.

(c)

Development fees waiver. Any property owner who receives the approvals pursuant to subsection (d) for the tax benefits of subsection (a) or (b) may petition the planning director and the finance director for their joint approval of a waiver of some or all building, fire, zoning and planning permit and review fees, as allowed by law.

(d)

Approval required. All of the tax incentives in this section are subject to the discretion and approval of both the finance director and the planning director. The director of planning may promulgate and publish rules and regulations, including, but not limited to, an application procedure, within 30 days of passage of the ordinance from which this section derives.

(Ord. of 9-30-2019(1), § 1; Ord. of 7-10-2023(1), § 1)

Sec. 34-81. - Eligibility criteria.#

(a)

The following types of development and/or tangible business equipment may seek to participate in the economic expansion incentive program:

(1)

Commercial or industrial facilities renovation, expansion or new construction when the existing or proposed use conforms to zoning.

(2)

Apartments, condominium complexes and hotels renovation, expansion or new construction when the existing or proposed use conforms to zoning.

(3)

Business tangible property which meets the qualifications established in this article.

(b)

The applicant and/or property owner must be current on all tax (together with interest and penalties), user fees and any other payments owed to the city at the time of application and at the time approval is granted with respect to the property for which an incentive is sought and all other property in the city owned by the applicant.

(c)

The minimum threshold for participation in this program:

(1)

Expansion or renovation of existing buildings is $250,000.00 in taxable improvements.

(2)

New building construction and tangible business equipment is $500,000.00.

(d)

The tax assessor shall establish the assessed value of the proposed improvements and/or the tangible business equipment prior to approving an application pursuant to this article.

(e)

In the event the applicant is delinquent on any quarterly tax or other payment due to the city on property receiving the exemption hereunder for a period of more than 45 days, or in the event that the subject property no longer complies with city and state zoning laws, building and fire codes, the tax incentive granted pursuant to this program shall cease immediately. Notice of the tax delinquency and/or failure to comply with city and state zoning laws, building and fire codes shall be sent to the property owner by registered mail after the tax delinquency and/or failure to comply with city and state zoning laws, building and fire codes occurs to allow the property owner notice and the opportunity to be heard and remedy the delinquency and/or failure. A copy of said delinquency notice shall be provided to the mayor and city council at the same time.

(f)

The incentive provided for herein will not relate to the value of land, but to the value of related improvements only. Tax assessment and collection practices and procedures will be the same as for any other property, including revaluation and improvements unrelated to the incentive, except for the application of the tax incentive provided for herein.

(g)

(Ord. of 9-30-2019(1), § 1; Ord. of 7-10-2023(1), § 1)

Sec. 34-82. - Application.#

(a)

Eligible property owners must apply for the economic expansion incentive program through the planning department. A complete application will contain the following material exhibits:

(1)

Application form;

(2)

Three sets of improvement plans;

(3)

An itemized description of the improvements associated with the project;

(4)

A nonrefundable application fee in the amount of $250.00;

(5)

A municipal lien certificate issued by the finance department for the project property and any other properties owned by the applicant;

(6)

A certificate of good standing from the state of Rhode Island.

(b)

The planning department shall develop such forms and procedures as deemed necessary or proper to process an application for the economic expansion incentive program. The application forms and procedures shall include requirements to further increase economic development in the city through preference for local suppliers and vendors, the utilization of WBE and MBE contractors and the local hiring of Central Falls residents.

(c)

A copy of the application must be sent to the tax assessor, building official, fire marshal, city clerk and other appropriate departments for comment and review. The tax assessor must establish the taxable value for the existing property and the proposed improvements as described within the application for stabilization and forward this information to the planning department.

(d)

Within 30 days of receipt of the application, the planning department must review the application and any other comments received and determine if the application is complete. If the application is complete, the planning department shall provide notice of completeness to the applicant. If the application is determined to be incomplete, the applicant is given 30 days to correct the deficiencies.

(e)

(Ord. of 9-30-2019(1), § 1; Ord. of 7-10-2023(1), § 1)

Sec. 34-83. - Approval process.#

(a)

The planning department, with the city finance director, must determine that the granting approval of the economic expansion incentive program application will inure to benefit of the city by reason of:

(1)

The willingness of the applicant to locate in the city; or

(2)

The willingness of the applicant to expand facilities with an increase in employment or to retain its facility in the city and not reduce substantially its work force in the city; or

(3)

The willingness of applicant to replace, reconstruct, expand, retain or remodel existing buildings, facilities, machinery or equipment with modern buildings, facilities, fixtures, machinery or equipment resulting in an increase or maintenance in plant or commercial building investment by the property in the city; or,

(4)

The willingness of the applicant to renovate, expand or construct housing.

(b)

The director of planning and the city finance director must approve or deny a decision within 15 business days of the application being deemed complete. A copy of that decision shall be provided to the mayor and city council at the same time it is provided to the applicant.

(c)

The applicant may appeal the decision of the planning director and finance director to the city council within 20 days of the decision.

(d)

For an approved application, the City Solicitor shall memorialize the terms and conditions of the tax stabilization, subject to all relevant city, state and federal laws, into an agreement, executed by the parties.

(Ord. of 9-30-2019(1), § 1; Ord. of 7-10-2023(1), § 1)

Sec. 34-84. - Reserved.#

Sec. 34-85. - Approved agreements—Requirements.#

(a)

Within one year of the approval of an economic expansion incentive program agreement, the applicant must obtain a building permit and complete the project in a timely fashion, or the tax stabilization agreement shall become null and void.

(b)

Upon issuance of a certificate of occupancy, the tax assessor shall inspect the property and confirm the added taxable assessed value. The tax assessor will notify the applicant and the planning department of the added value and the schedule of phased-in taxable value on the new construction or improvement.

(c)

The planning department and finance director shall submit an annual report to the mayor and council identifying all properties participating in the economic expansion incentive program.

(Ord. of 9-30-2019(1), § 1)

Sec. 34-86. - Affordable housing.#

(a)

Findings. The city is committed to the development of a comprehensive housing strategy that addresses the housing needs of the different populations that live in our community. Therefore, when the city participates in the development of housing by approving an application for participation in the economic expansion incentive program, the applicant must commit to developing affordable housing units in accordance with the provisions of this section.

(b)

Definitions.

Affordable housing. Rental or owner-occupied housing that meets the requirements of R.I.G.L. § 42-128-8.1(d)(1).

Deed restricted affordable housing. Housing whether built or operated by any public agency or any nonprofit organization or by any limited equity housing cooperative or any private developer, that is subsidized by a federal, state, or municipal government subsidy under any program to assist the construction or rehabilitation of housing affordable to low or moderate income households, as defined in the applicable federal or state statute, or local ordinance and that will remain affordable through a land lease and/or deed restriction for 99 years or such other period that is either agreed to by the applicant and city or prescribed by the federal, state, or municipal government subsidy program but that is not less than 30 years from initial occupancy.

(c)

Applicability. When an applicant proposes to develop more than 20 units of housing, ten percent of the units developed must be deed restricted as affordable housing.

(d)

Design of housing. The appearance of affordable units in any development shall be visually compatible with the market rate units in the development. Building materials and finishes shall be substantially the same in type and quality for affordable units as for market rate units.

(e)

Alternatives to on-site construction of deed restricted affordable housing. The applicant may propose one or more of the alternative methods to meet this affordability restriction.

(1)

Land dedication. Applicants may propose donations of land in fee simple, on or off-site, that the city in its sole discretion, determines is suitable for the construction of affordable housing units. Prior to acceptance of the donation, the city shall consider the following:

Whether the value of donated land is equal to or greater than the established fee-in-lieu value. The city may require, prior to accepting land as satisfaction of the requirements of this provision, that the applicant submit appraisals of the land in question, as well as other data relevant to the determination of equivalent value.

Whether there are environmental constraints, legal encumbrances or other conditions that would otherwise limit the development potential of the site.

(2)

Off-site construction. Applicants may propose the construction of the required number of deed restricted affordable housing units on a site other than the one that is the subject of the application. The construction of any off-site units shall be completed simultaneously with the project for which a tax stabilization agreement is granted. Failure to complete the off-site units on time shall cause the agreement to be null and void.

(3)

Fee-in-lieu. Applicants may elect to contribute a fee to the city's affordable housing fund instead of constructing all or a portion of the required deed restricted affordable housing on site. The fee amount shall be determined in accordance with R.I.G.L. § 45-24-46.1. The amount of the contribution shall be recorded as part of the tax stabilization agreement along with the approved payment schedule.

(f)

Certifying buyers and maintaining affordability. All inclusionary units required under this section shall be eligible for the city's official inventory of affordable housing as maintained by the state approved monitoring agency. The required minimum term of affordability shall be not less than 30 years.

(g)

Eligible occupants. Ownership units shall be occupied by their purchasers as their primary residence and not rented for seasonal occupancy nor rented for any other occupancy except during temporary absences totaling not more than eight weeks in any 12-month period. Rental units may be sub-leased only to a household meeting the applicable income restrictions on affordability.

(h)

Qualification and monitoring. The developer or owner shall contract with a state approved monitoring agency for the following purposes:

(1)

To determine pricing for initial sale, resale, lease, transfer or sublease of the inclusionary dwelling units.

(2)

To qualify purchasers or renters for initial occupancy based on household size and income.

(3)

To assist in the development of a marketing and resident selection plan that meets state and federal fair housing requirements, to be approved by the planning board.

(i)

Long-term affordability. Long-term affordability shall be assured through a land lease and/or deed restriction recorded in the city land evidence records before the sale or lease of the inclusionary unit. The lease or deed restriction shall include information regarding:

(1)

The basis for calculation of the maximum allowable sales or rental price for the housing unit both initially and for future buyers or renters.

(2)

Restrictions concerning who may occupy the unit, and for what period.

(3)

A marketing plan that meets local preferences and state and federal fair housing requirements.

(4)

Provisions for monitoring and assurance of compliance over time.

(5)

Provisions under which the city, a nonprofit organization designated by the city, or state housing may exercise a right of first refusal to purchase an inclusionary unit being offered for sale.

(j)

Any terms required in this section may be amended or waived jointly by the finance director and the planning director upon a showing of good cause and a finding that the development project is in the best interests of the city, that the benefit will assist the project come to fruition an d that there are community benefits contained in the project including, but not limited to, preferences for local suppliers and vendors, the utilization of WBE and MBE contractors, the local hiring of Central Falls residents and the creation of affordable housing and/or home ownership.

(Ord. of 9-30-2019(1), § 1; Ord. of 7-10-2023(1), § 1)

Sec. 34-87. - Affordable housing fund.#

(a)

Legislative findings.

(1)

There is a critical shortage of affordable and accessible housing statewide, and while more than ten percent of city housing stock is permanently affordable, the city needs to work to preserve this housing and create more affordability for its low income and middle-class residents.

(2)

To maintain our affordable housing units and to address the growing need in the city, there needs to be a dedicated financial resource which can be committed to preservation and the production of new affordable housing units.

(3)

There are too few funding opportunities to increase home ownership opportunities for low and moderate income residents and families in the city.

(4)

An affordable housing fund can be designed to take advantage of unique opportunities for housing production and to address the specific housing needs identified in the city and to mitigate the harmful effects of gentrification.

(5)

The construction, development and renovation of housing units in the city should be accompanied with requirements to further increase economic development in the city: preference for local suppliers and vendors, the utilization of WBE and MBE contractors and firms and the local hiring of city residents.

(b)

Definitions. As used in this chapter, the following terms shall have the meanings indicated:

Affordable housing. Rental or homeownership housing that requires a household to spend no more than 30 percent of its gross income on housing related expenses.

Area median income. As defined by Rhode Island Housing or other state agency in accordance with applicable state law.

Board. The affordable housing fund board.

Community-based organization. A community-based nonprofit corporation, which has been determined to be an organization described in Section 501(c)(3) of the Internal Revenue Code of the United States and that has a demonstrated capacity to carry out proposed housing activities.

Extremely-low-income household. A household whose annual income does not exceed 30 percent of the area median income as adjusted to family size.

Fund. The affordable housing fund.

Homeless. Persons and families who have no access to or can reasonably be expected not to have access to either traditional or permanent housing which can be considered safe, sanitary, decent and affordable.

Homelessness prevention. Emergency assistance to prevent a household from becoming homeless.

Housing development organization. A community-based organization whose mission includes providing housing and/or revitalizing a community or communities.

Low-income household. A household whose annual income does not exceed 80 percent of the area median income as adjusted to family size.

Moderate-income household. A household whose annual income does not exceed 120 percent of the area median income as adjusted to family size.

Very-low-income household. A household whose annual income does not exceed 50 percent of the area median income as adjusted to family size.

(c)

Purpose of the affordable housing fund.

(1)

The purpose of the fund is to increase resources available for the creation or rehabilitation of affordable housing and neighborhood revitalization; and

(2)

To create and preserve affordable and accessible housing to meet the needs of the city's low and moderate income households; and

(3)

To increase home ownership opportunities for low and moderate income residents and families in the city; and

(4)

To provide housing investment to revitalize and maintain the integrity of existing neighborhoods; and

(5)

To leverage additional outside resources for the creation and rehabilitation of affordable housing; and

(6)

To further increase economic development in the city: preference for local suppliers and vendors, the utilization of WBE and MBE contractors and firms and the local hiring of city residents.

(d)

Establishment.

(1)

The affordable housing fund is hereby established as a separate segregated account under the name of the "affordable housing fund," held by the city to address the purposes set forth in this chapter.

(2)

Into the fund shall be deposited revenue collected under the provisions of this section and any other funds designated for the development or preservation of affordable housing.

(3)

It is the intention that the fund be dedicated to implementation the purposes of this chapter. Any assets remaining in the fund at the end of any fiscal year shall be carried into the next fiscal year, including all interest and income earned, as well as any repayments or forfeitures of loans and/or grants.

(4)

Monies from the fund must be distributed for the benefit of the target income groups according to the city affordable housing plan as may be amended from time to time.

(5)

The acceptance of funding shall be conditioned upon compliance with long-term affordability restrictions and monitoring in accordance with guidelines provided by the city affordable housing plan and other applicable local, state and federal restrictions.

(e)

Administration.

(1)

The city finance department will manage the fund in collaboration with the board.

(2)

The planning department and law department shall provide staff support to the board as necessary. The administrative costs of the fund and board will be a line item in either the finance department or planning department budget.

(f)

Establishment of affordable housing fund board.

(1)

There is hereby established an affordable housing fund board consisting of five (5) members, which shall include at least one representative of the business community and one representative of a community-based organization or housing development organization. The remaining members shall be from the community at large. Members shall be appointed by the mayor and confirmed by the city council and serve without compensation.

(2)

Each member of the board shall be a resident or property owner or business owner in the city.

(3)

Of the five members of the board initially selected, two members shall be appointed for a three-year term, two members shall be appointed for a two-year term, and one member for a one-year term. All members of the board appointed thereafter shall be appointed for full terms of three years. Should there be a vacancy on the board, the mayor shall appoint replacement to serve the remainder of the vacant term.

(4)

Notwithstanding the initial appointments, a full term of office for a member of the board shall begin on the first day of the calendar year following his or her appointment and shall expire on the last day of the calendar year three years later.

(5)

For the purposes of conducting any official business a simple majority of the sitting board shall constitute a quorum.

(6)

The affairs of the board shall be conducted in accordance with the State of Rhode Island's Open Meetings Act and Access to Public Records Act. Board members shall comply with the Rhode Island Rules of Ethics and the Central Falls Code of Ethics.

(g)

Powers and duties of housing board.

(1)

The board shall set standards, policies, and goals for the fund, consistent with the purposes and policies set forth in this chapter, including without limitation criteria for eligible projects, number and type of units funded, and scoring of applications for funding.

(2)

The board shall establish bylaws for the conduct of business in accordance with this chapter.

(3)

The board shall annually review fund awards to ensure that fund resources are expended in a manner that conforms with this chapter and with the board's directives and shall revise fund policies as needed to ensure this conformity.

(4)

By February 1 of each year, the board shall issue an annual report on the activities and accomplishments of the fund in the previous calendar year. This report shall:

Provide total numbers of housing units produced, differentiating between ownership and rental, homes preserved, and households prevented from becoming homeless with fund support.

List projects funded through the fund.

Report on funds expended and dollars leveraged by fund funds.

Report in aggregate form the number of households benefiting from the fund by income level, geographic distribution, family size, and other criteria as selected by the board.

Report on modifications which will be made to policies of the board designed to reflect the changing needs of the city.

Establish goals and objectives for the upcoming year.

(5)

The fund shall, for financial reporting purposes, be a governmental fund of the city and, as such, shall be included in the city's comprehensive annual financial report and will be audited in accordance with governmental auditing standards.

(6)

The board shall follow all city policies, including, but not limited to, the city's purchasing policy. All monies received by the board shall be paid to the finance director of the city, who shall hold the same in a segregated account and shall pay and distribute the same only on the written order of the board.

(h)

Programs and operations.

(1)

Eligible applicants.

Projects and programs to which funds may be provided include eligible community, neighborhood-based, housing-assistance organizations, institutions, associations, for nonprofit and profit developers, as well as societies or corporations that:

Do not discriminate on the basis of age, religion, sex, race, color, marital status, sexual preference or national origin; provided, however, that this provision shall not affect the eligibility of an applicant proposing age-restricted housing; and

Conduct an annual certified external audit; and

Operate a drug-free premises.

Individual homeowners may be eligible applicants through a structured home loan/grant program, provided they meet certain eligibility requirements.

(2)

Eligible projects. Eligible uses of fund resources may include, but are not limited to, affordable housing projects, including workforce housing consisting of new construction rental and homeownership housing, substantial or moderate rehabilitation of rental or homeownership housing, housing preservation, and grants to make homes accessible to individuals with disabilities, and homelessness prevention activities. Eligible projects shall outline in detail how they will further increase economic development in the city via preference for local suppliers and vendors, the utilization of WBE and MBE contractors and firms and the local hiring of Central Falls residents.

(3)

Award of funds. Fund resources may be distributed as grants and/or loans, pursuant to the terms and conditions set forth in an agreement, any request for proposal, and in conformance with the directives of the board.

(4)

General review criteria. The board shall review the extent to which eligible proposals meet the following review criteria in order to determine which, if any, best meet the purposes of the fund and the needs of the city:

The number of affordable units to be developed through new construction, rehabilitation, conversion or acquisition.

The amount of money to be invested from the fund per affordable unit to be developed, preserved, or acquired.

The developer's capacity, determined through consideration of the developer's past history in completing projects or similar scale and nature, and for developers proposing rental housing, the property management history of the developer and management agent.

The timeliness with which units shall be developed.

The number of years that the project shall maintain units at affordable rental or sales prices, and the strength of the enforcement mechanisms offered to ensure this long-term affordability.

The number of the affordable units that shall be made available to households within the various income categories (i.e., moderate-, low-, very-low-, extremely-low-income households).

The extent to which projects provide necessary housing for families, elderly, or special needs individuals, as such a need is identified in the city's affordable housing plan.

The degree to which funds monies are used to leverage additional funds and/or the funds return, through repayment, to enhance its available resources.

The extent to which the developer has addressed or intends to address community concerns related to the project.

The extent to which the developer's proposal minimizes negative impacts on existing tenants, particularly displacement.

The extent to which a project is consistent with the city comprehensive community plan and specifically the affordable housing plan, and the extent to which a project is consistent with the zoning ordinance and the land development and subdivision regulations; provided that an applicant shall seek relief from the zoning board or the planning board where required.

The extent to which the project provides for preference for local suppliers and vendors, the utilization of WBE and MBE contractors and firms and the local hiring of city residents.

Such other criteria as the board may establish in request for proposals or alternative application process.

(i)

Procedures for awarding funds.

(1)

The board must develop programs for the use of the funds. The program must establish goals to be achieved and application evaluation criteria. The programs must be approved by the city council.

(2)

The board may accept funding proposals on a rolling basis or may establish a competitive application process. Awards must be made in accordance the rules for the authorized programs and are made at the discretion of the board.

(3)

The board may, from time to time, approve funding for a project that does not conform to an approved program. In doing so, the board must report to the city council why they are funding this request, what will be achieved and the amount of funds to be dedicated to the project.

(j)

Sources of revenue.

(1)

The housing fund is composed of several fund sources. The fund sources have been combined to create a pool of money to fund a variety of housing projects and programs, which directly assist homeowners in the creation or rehabilitation of affordable housing or allow community-based organizations and housing-based organizations to help provide housing options for households earning up to the U.S. Department of Housing and Urban Development moderate-income limit.

(2)

The affordable housing fund may be funded though fee-in-lieu contributions as permitted by this article.

(3)

The affordable housing fund shall be funded through revenues derived from gifts or grants to the city and the fund, and from appropriations from the city's general fund or other public sources, as the council may from time to time establish or approve.

(4)

Dedicated sources of revenue will be sought through the state and federal government subsidy programs as well as private and public sources. Dedicated sources may also include the collection of payments in lieu of construction of affordable housing required under city council approved inclusionary zoning provisions, the collection of impact fees or other exactions approved by the city council, and the repayment of loans funded by the board.

(5)

Any funds collected by the fund in the ordinary course of its business, including other sources that may be identified, interest and income earned, repayments, or forfeitures under any loan or grant agreements shall be deposited into the fund. In order to increase available resources for affordable housing production and preservation, the fund shall not supplant current funding levels for housing available from other sources.

(Ord. of 9-30-2019(1), § 1)