Council Introduces a Newly Revised Law to Protect Affordable Housing in the City
A revised and strengthened 8 Law ordinance was introduced at the May 16th Council meeting. The new ordinance was crafted after significant input and lengthy discussions with community partners, who are out in Providence’s neighborhoods building and protecting affordable housing units.
The changes made from the previously introduced version add flexibility in compliance, reduce redundancies, and eliminate the possibility of unintended burdens on organizations that are increasing the affordable housing stock across the city.
Following weeks of collaboration, Housing Network of Rhode Island, the state association of nonprofit developers, sent the Council a letter that read in part: "We wish to commend the City Council staff, President and members, and extend our sincere thanks, for their incredible responsiveness to our outreach efforts to elevate our concerns. The time that was taken by City Council staff, president and individual members to truly hear and understand our concerns, and work together to address those concerns, was exceptional and in our minds, stands out as a model for how municipal level government can be a real partner in advancing common goals."
The law, commonly known as the 8 Law and introduced earlier this year by Council President Rachel Miller, considers rental units ‘low-income’ when restricted to tenants earning 80% or less of the area median income (AMI), and the rent is limited to 30% of their income. In the past, this tax treatment has been abused, with wealthy developers applying it to entire buildings that only have a few income-restricted units or even for commercial spaces in mixed-use buildings.
“Councilors held multiple meaningful discussions with our community development groups and non-profit developers over the last two weeks,” said Council President Rachel Miller (Ward 13). “We listened and collaboratively made the appropriate changes to the legislation. Council urgently needs to move forward with this ordinance to close the tax loophole being taken advantage of by ultra-wealthy developers and to ensure that everyone is paying their fair share in our city.”
To see the updated legislation, click - HERE
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