S 3030Cities & Towns

Towns and Cities - Subdivision of Land

This bill allows the town of Coventry to require developers to guarantee the completion of private improvements in new subdivisions.

Held for study

Population
Affected

Email Legislator

Introduced Mar 5, 2026Committee Senate Housing & Municipal Government

Plain-English Summary

This legislation amends the state laws regarding land subdivision specifically for the town of Coventry. Currently, municipalities require developers to provide financial guarantees or complete construction for "public" improvements (like roads and sewers) before a subdivision plan receives final approval. This bill allows the town of Coventry to extend this requirement to "private" improvements as well. This means developers in Coventry would need to guarantee the completion of all infrastructure within a subdivision, regardless of whether it is intended for public or private use, before receiving final authorization.

For younger readers

When builders create a new neighborhood, they have to promise the town that they will finish building important things like streets and sidewalks. Usually, they only have to promise to finish things that the whole town will use. This new rule is just for the town of Coventry. It says that builders there also have to promise to finish things that might be private, just for the people living in that specific neighborhood. This helps make sure the whole neighborhood gets built correctly before the builders leave.

Who & Where It Applies

Impacted groups

Real Estate DevelopersHomebuyers in CoventryCoventry Planning DepartmentConstruction CompaniesFinancial Institutions (issuing bonds)

Impacted communities

Coventry

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Protects future residents and homeowners from predatory development practices where builders might abandon private infrastructure projects (like private roads or landscaping) before completion.
Ensures that the costs of completing necessary infrastructure fall on the private developers seeking profit, rather than potentially shifting the burden to the community or municipality if the project fails.
Promotes better community planning and stability by ensuring that all aspects of a housing development are financially secured before final approval is granted.
Could increase the upfront costs for developers, which might be passed down to buyers, potentially making housing in these subdivisions less affordable for working families.
Creates a disparity in regulations where one specific town has stricter rules than others, potentially leading to unequal housing development patterns across the state.
May create an additional barrier to entry for smaller, local construction firms that might struggle to secure the capital required for larger financial guarantees compared to large corporate developers.

For Conservatives

Strengthens local control and "home rule" by allowing the town of Coventry to determine specific standards that work best for their community rather than relying solely on a one-size-fits-all state mandate.
Protects the property values of homeowners within the subdivision by ensuring the development is fully completed and does not suffer from blight due to unfinished private infrastructure.
Enforces strict contractual responsibility, ensuring that businesses fulfill their obligations to complete the projects they promised to build.
Increases government regulation and red tape on private businesses, potentially stifling economic activity and development within the town.
Interferes with the free market by mandating government oversight on "private" improvements which should theoretically be a matter between the developer and the private land owners.
Could deter investment in the town of Coventry specifically, driving developers to neighboring towns with less burdensome regulatory environments.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 7 additions

SECTION 1. Section 45-23-46 of the General Laws in Chapter 45-23 entitled "Subdivision of Land" is hereby amended to read as follows: 45-23-46. General provisions — Construction and/or improvement guarantees.

(a) The local regulations shall require approval of the permitting authority of agreements for the completion of all required public improvements prior to final plan approval in the form of:

(1) Completion of actual construction of all improvements; (2) Improvement guarantees; or (3) Combination thereof. As to the town of Coventry, the local regulations shall require approval of the permitting authority of agreements for the completion of all required public and private improvements prior to final plan approval in the form of:

(1) Completion of actual construction of all improvements;

(2) Improvement guarantees; or

(3) Combination thereof.

(b) Where improvements are constructed without a financial guarantee, the work is to be completed prior to final approval. All construction shall be inspected by the appropriate town staff or agents in a timely manner and approved under the direction of the administrative officer and according to local regulations.

(c) Improvement guarantees shall be in an amount and with all necessary conditions to secure for the municipality the actual construction and complete installation of all the required improvements, within the period specified by the permitting authority. The amount shall be based on actual cost estimates for all required public improvements and these estimates shall be reviewed and approved by the permitting authority. The permitting authority may fix the guarantee in a reasonable amount in excess of the estimated costs to anticipate for economic or construction conditions. Local regulations may include provisions for the review and/or upgrade of guarantees.

(d) The security shall be in the forms of financial instruments set forth in local regulations and shall enable the municipality to gain timely access to the secured funds, for cause. The local regulations shall provide at least three (3) acceptable forms of financial security and the approving authority shall not limit the security to one specific form of the acceptable forms set forth in the local regulations.

(e) The local regulations shall establish procedures for the setting of improvement guarantee amounts; for inspections of improvements; for acceptance of improvements by the municipality; and for the release of the improvement guarantees to the applicant. Procedures may include provisions for partial releases of the guarantees as stages of the improvements are completed, inspected, and approved under the coordination of the administrative officer and reported to the permitting authority.

(f) In the cases of developments and subdivisions that are being approved and constructed in phases, the permitting authority shall specify improvement guarantee requirements related to each particular phase.

(g) The permitting authority may also require maintenance guarantees to be provided for a one-year period subsequent to completion, inspection, and acceptance of the improvement(s) unless there are extenuating circumstances. Such maintenance guarantee shall not exceed ten percent (10%) of the original guarantee amount, or the original cost of the public improvements if no guarantee was required.

(h) Procedures for the acceptance of required improvements shall stipulate that all improvements, once inspected and approved, shall be accepted by the municipality or other appropriate municipal agency for maintenance and/or part of the municipal system.

(i) The municipality is granted the power to enforce the guarantees by all appropriate legal and equitable remedies.

SECTION 2. This act shall take effect upon passage.