Summary
The Rhode Island Supreme Court considered whether the Town of East Greenwich had authority to require developers to pay a fee in lieu of constructing affordable housing units. The court held that municipalities may not impose such a fee without specific enabling legislation from the General Assembly, concluding that the town's ordinance exceeded its home-rule authority. The court vacated the Superior Court judgment and remanded with directions to grant injunctive relief.
Topics
Practice areas
Questions Presented
- Whether East Greenwich had statutory or home-rule authority to impose a fee-in-lieu of constructing affordable housing units.
- Whether the Superior Court properly denied injunctive relief based on the validity of the fee-in-lieu requirement.
Holdings
- A municipality may not impose a fee-in-lieu of constructing affordable housing without specific enabling legislation from the Rhode Island General Assembly. East Greenwich's imposition of the fee was ultra vires because the cited statutes did not authorize the fee and the matter involved a statewide concern rather than a purely local concern.
Key quotations
“In our judgment, authorization for such a fee-in-lieu must be the result of the enactment of specific enabling legislation by the General Assembly.” (534-535)
“In light of the foregoing considerations, it is our view that, before a municipality may impose a fee-in-lieu on developers, it must have specific statutory authorization from the General Assembly—as is the case with respect to development impact fees and open space fees.” (537-538)
Factual background
North End Realty owned property in East Greenwich and sought approval to develop a five-lot residential subdivision. East Greenwich ordinances required developers either to designate 15 percent of subdivision units as affordable housing or pay $200,000 for each required affordable unit not built. Because North End did not plan to include affordable units, the town required payment of a fee-in-lieu before recording subdivision approval and beginning development.
Procedural history
North End Realty challenged East Greenwich ordinances requiring certain residential developers either to construct affordable housing units or pay a $200,000 fee-in-lieu. After the parties stipulated to the facts, the Superior Court denied injunctive relief, concluding that the fee was not an illegal tax or unconstitutional taking and did not violate due process or equal protection. Final judgment entered for the defendants, and North End Realty timely appealed.
Remand instructions
The Superior Court was directed to issue an order enjoining East Greenwich from imposing, assessing, or collecting the fee-in-lieu.