News Flash

TOWN TO CONSIDER REDUCING, ELIMINATING IMPACT FEES 

ON AFFORDABLE HOUSING PROJECTS

MIDDLETOWN, RI (MAY 1, 2025) – The Town Council has made it clear growing the right affordable housing in Middletown is priority No. 1.

As part of that effort, local leaders have pledged to attack the issue on multiple fronts as much as reasonably possible.

So when a discussion came up recently about reviewing and potentially updating the impact fees the town charges on new development, council President Paul M. Rodrigues seized on the opportunity.

After hearing from a local man who cut a sizable check for impact fees on an affordable housing unit in town, Rodrigues wondered why Middletown didn’t do more to reduce — or eliminate — those charges on such developments, something local leaders said they’d look into.

“The timing of this couldn’t be better,” Rodrigues said. “If they make more affordable housing, is it possible where they don’t have to pay an impact fee or they pay less of an impact fee? We’re trying to do affordable housing, but then we’re making it less affordable if we’re charging an impact fee.”

The impact fees were on the council agenda because town officials said under state law, they must be reviewed periodically to make sure they’re based on a needs assessment study that no more than five years old.

Currently, the town charges impact fees for fire, police, municipal facilities, parks and recreation and sewers.

Town Planner Ronald Wolanski said the town waives impact fees on affordable housing projects, but only those that are deed restricted and subsidized. 

He said he believed the situation laid out by Rodrigues dealt with a new accessory dwelling units, which were not deed restricted or subsidized, but could be considered “affordable housing” nonetheless.

“This is the first time we’ve faced this, but other communities must face this,” Rodrigues said. “I’d like to see if there’s anything out there and if we can look at that. We’re trying to get more affordable housing and then ‘By the way, here’s this $10,000 impact fee.’”

“Even if it’s not deed restricted and income restricted, does it make sense to charge the same impact fee for an ADU as a single-family house?” Wolanski asked. “Now is a good time to look at it.”

The council implemented the one-time impact fees on certain new residential and commercial construction in August 2004. 

The thinking was that new development should cover the capital costs of its impact on the town’s schools, sewers, open space and emergency services.

In spring 2018, the town stopped collecting impact fees for the schools because data showed student enrollment was declining and the community couldn’t justify charging the fees any longer.

Introducing the item to the council, Town Administrator Shawn J. Brown said Middletown wanted to have another look at reimplementing the impact fee for schools and whether the other fees should be updated.

After a competitive bidding process, DTA of Irvine, California was awarded the contract to review the town’s current fees and make recommendations for adjustments.

The item is expected to come back before the council in the next three or four months for discussion after DTA’s review. For more about the town’s ongoing efforts with affordable housing, go to https://mdl.town/AH online.

“(DTA) have to look at what we have in our (Capital Improvement Program), do the analysis based on trends and anticipated development to try to figure out how much to charge in each new dwelling, each new square foot of commercial development,” Wolanski said. “It’s a bit of a process.”

Document Link: https://mdl.town/NYCU-ImpactFees

About Middletown

The Town of Middletown is a vibrant municipality located on Aquidneck Island, known for its scenic beauty, historic landmarks, diverse economy and strong sense of community. For more information about all we have to offer, visit MiddletownRI.gov online.

Media Contact

Matt Sheley

Public Affairs Officer

401-842-6543

msheley@middletownri.gov