Rhode Island clears the path for more adaptive reuse projects in 2024

Union Primary School Lofts in Rumford, RI. Photo © Christian Scully / DIS

Providence, RI - The new year brings into effect several changes to state zoning laws that could significantly impact real estate development in Rhode Island. In particular, one set of changes focused on adaptive reuse projects will impact many of our development and multi-family housing clients. 

What is Adaptive Reuse? 

Rhode Island law now includes the definition of “adaptive reuse” as “the conversion of an existing structure from the use for which it was constructed to a new use by maintaining elements of the structure and adapting such elements to a new use”. 

Adaptive reuse is about preservation and sustainability and it is one of several answers to the nationwide housing crisis. 

What big change did Rhode Island make to zoning laws?

State lawmakers have removed a major hurdle for adaptive reuse projects, helping developers avoid zoning challenges and also incentivizing consideration of previously challenging potential building conversions. Beginning on 1/1/2024, any commercial structure can be converted to a multi-family residential or mixed use building as a permitted use, regardless of the zoning district. Potential candidates for this newly permitted conversion by-right include offices, school buildings, religious facilities, medical buildings and malls. This new permitted use is now state wide and local municipalities will need to amend their local ordinances. 

What else should developers know?

There are several other exclusions and provisions developers should keep in mind. The newly permitted use will not be allowed if there is a recorded environmental land use restriction. Regarding the new use of any property, at least 50% of the existing gross floor area must be converted into residential units.

Existing setbacks will remain as legal non-conforming if so, but no additional encroachments will be permitted without a variance. Existing height will also be allowed and considered legal non-conforming, and on top of that, any rooftop construction will also be included in the height exemption. 

Density will increase in many parts of Rhode Island to a minimum of 15 units per acre or about 3,000 square feet of land per unit where there are public water and sewer utilities. As far as parking for these adaptive reuse projects is concerned, no more than 1 space per unit will be required off-street.

What will be the impacts of these zoning law changes?

These changes are intended to open up many existing and underused commercial buildings to potential multifamily housing development, helping to add much needed housing units throughout the state while simultaneously preserving existing and historic structures.  Additional laws were inacted allowing for increased density for projects that include affordable housing units. Increasing available units and incentivizing affordable housing unit development with inclusionary zoning will go a long way to easing the supply crunch and slowing rent increases. As we continue design work on several large and historic adaptive reuse housing projects, we look forward to seeing how these new changes impact housing development in the years to come.