City Council BUILDs on Previous Housing Legislation with New Affordable Housing Act

FOR IMMEDIATE RELEASE

Wednesday, April 1, 2026

Contact: Kati Stevens (kstevens@providenceri.gov)

Providence, RI – Today, at a press conference, City Council President Rachel Miller (Ward 13), Deputy Majority Leader Mary Kay Harris (Ward 11), and non-profit housing developers announced the Boosting Urban Investment to Launch Development (BUILD) Act, legislation that would tax properties offering affordable housing units appropriately from the start, not just upon occupancy, in order to ramp up housing supply.

“The BUILD Act paves the way for the speedy development of affordable income-restricted housing,” said Council President and Act sponsor Rachel Miller. “At a time when our housing crisis requires a swift response, removing process barriers and ensuring that low-income housing developers have what they need to make the financing case has a big impact in the low-income landscape. This is another strong step forward as the Council works to increase development, protect the housing stock, and stabilize the cost of rent.”

“We appreciate the Providence City Council’s recognition that successful affordable housing development depends on predictability and consistency, as demonstrated by the introduction of this ordinance to provide property tax considerations during the development phase,” said Melina Lodge, Executive Director of Housing Network RI. “By reducing uncertainty and allowing developers to focus resources on building homes, this policy meaningfully eases financial pressures while fostering greater efficiency and innovation.”

“Importantly, the added predictability these tax considerations provide enables more reliable planning and execution, helping to accelerate the delivery of much-needed housing for individuals and families,” Lodge continued. “We commend the City Council for its leadership and continued commitment to creating a stable, supportive environment that advances sustainable growth and expands access to affordable housing.”

Currently, low-income housing is subject to a special tax rate, where municipalities assess their properties’ taxes at 8% of their gross scheduled rental income. However, the “8 Law,” as this provision is known, only goes into effect upon occupancy of the rental units. In between the start of construction and initiation of rent, properties are taxed at the regular rate. This is especially problematic when unexpected delays arise, forcing low-income housing developers—who already operate on thin margins—to face tax bills they may not be able to afford.

The BUILD Act will change that, using the tax stabilization agreement (TSA) structure to provide limited stabilization during that gap time before the 8% tax treatment goes into effect. By removing the tax burden from the start, the BUILD Act would clear a difficult barrier to the construction of more affordable housing, especially the deeply affordable housing needed by the lowest income households.

Alongside efforts to increase housing production, Council President Miller and President Pro Tempore Juan M. Pichardo (Ward 9) are advancing rent stabilization to protect tenants from sudden and unsustainable rent increases. According to the sponsors, addressing the housing crisis requires both building more homes and ensuring they remain affordable to the people of Providence. The Council has taken a host of other actions to help increase the supply of housing that is affordable to working-class residents from allocating tens of millions of dollars in new funding for the Providence Housing Trust Fund to prioritizing inclusionary zoning policies in the 2024 Comprehensive Plan. The Council also created a requirement for the Housing Trust Fund to be used strictly for low- and moderate-income housing (below 80% AMI). To learn more about the City Council’s work to combat the housing crisis through increasing housing supply, protecting our housing stock, and stabilizing rent, visit the Housing Hub.

The BUILD Act will be formally introduced at tomorrow evening’s City Council meeting on the third floor of City Hall. The Act can be viewed in full on the Open Meetings Portal.

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