Coventry council amends impact-fee ordinance, approves modest increase and housing exemption option

Coventry — The Town Council on Jan. 14 approved Ordinance 24-05, a revision to the town—s impact-fee schedule, voting 5-0 to amend the language that governs exemptions for low- and moderate-income housing and then approving the ordinance as amended.

Council members voted to increase the per-unit impact fee from $58.54 to $68.78 and to change proposed language that would have categorically prohibited charging the fee on certain affordable units. The council struck "shall not" and replaced it with "may not" in the ordinance—s exemption clause, giving the council discretion to impose or waive fees on qualifying affordable housing projects in the future.

The town manager summarized the study that supported the increase, saying it accounts for sewer upgrades the prior 2020 study did not include. "Basically, we're looking to increase the impact fee from $58.54 to $68.78," he told the council during the public hearing, noting the revised figure factors in sewer work expected over the next five years. The manager also provided comparisons to other municipalities: South Kingstown (about $44.08), Smithfield (about $60.57), and Middletown ($59.72).

Solicitor advice shaped the amendment debate. "Well, 'shall not be imposed' is a is a prohibition against the imposition of the impact fee," the solicitor said when council members asked whether the ordinance language would permanently bar fee collection on certain units. Council members who favored flexibility said changing the wording to "may" preserves the town—s ability to offer fee relief in particular cases while staying compliant with state law.

Council members also asked where the additional revenue would be allocated. Town staff replied that the charter prescribes a formula for breaking down impact-fee revenue among capital categories and that the formula cannot be changed at the meeting. "The imposition of the fees and the breakdown of the fees is driven formulaic. You don't have a way to change that for you tonight," a town official said.

After the amendment passed by roll call (Council members Brown, Pasquale, Capaldi, Copley and Vice President Verducci voting yes), the council voted to adopt Ordinance 24-05 as amended, 5-0.

The ordinance also includes a provision drafted to allow local forgiveness of impact fees for low- and moderate-income housing units "as defined in the section of the general laws," according to staff. Under the language included in the ordinance, only units deemed affordable under the state's definition would be eligible for local fee forgiveness; other units in mixed developments would remain subject to fees.

The council did not change the charter's allocation formula at the meeting and did not take separate action to reallocate how fees are spent. Staff and council members said any adjustment to the allocation percentages would require additional review and a change to the chart in the charter.

What—s next: The ordinance takes effect as adopted by the council. Council members and staff said they may return in future meetings for further amendments if they choose to exercise the newly retained flexibility for affordable housing projects.