Eliminates mandated housing densities/density bonuses for public drinking water supply watersheds/groundwater. Requires densities not exceed water availability, introduce pollution, stay within public water or sewer system capacity limits.

Plain-English Summary

This bill would change Rhode Island's affordable housing laws to create special exceptions for areas near public drinking water sources. Currently, state law can require towns and cities to allow higher-density housing developments and offer "density bonuses" — meaning developers can build more units than local zoning normally allows — as a way to encourage the creation of affordable housing. This bill would eliminate those requirements in areas that sit within or near watersheds and groundwater sources that supply public drinking water.

Under this bill, housing development in these sensitive water areas would need to meet several conditions: the number of homes built cannot exceed what the local water supply can support, development cannot introduce pollution into the water supply, and the density of housing cannot go beyond what the existing public water and sewer systems can handle. Essentially, protecting the water supply would take priority over meeting state affordable housing density targets.

The bill would primarily affect towns and cities that have drinking water watersheds or groundwater sources within their boundaries. Developers seeking to build higher-density affordable housing projects in these areas would lose access to the state-mandated density allowances they currently enjoy. Local governments in these communities would have more control over limiting development near water sources. Advocates for water quality and local zoning control might support the bill, while those focused on expanding affordable housing availability could see it as reducing tools to build more homes.

The bill has been referred to the House Municipal Government & Housing Committee and is scheduled for a hearing in April 2026.