| | Advanced Search

 

NEW: David Caprio Resigns as Democratic State Party Chairman—NEW: David Caprio Resigns as Democratic State Party…

Federal Hill Business Leaders Pledge to “Take Back” Their Community—Federal Hill Business Leaders Pledge to "Take Back"…

NEW: RI Housing Launches First Time Homeowner Tax Credit—NEW: RI Housing Launches First Time Homeowner Tax…

NEW: Block Chastises Dems for Insider Politics, “Rigging the Game”—NEW: Block Chastises Dems for Insider Politics, "Rigging…

Riley: RI Treasurer’s Race Part 4: Public Fund Summit 2014—Riley: RI Treasurer's Race Part 4: Public Fund…

NEW: 10 “Accurate” Rhode Island Stereotypes—NEW: 10 "Accurate" Rhode Island Stereotypes

10 Great Pets in Need of Loving Homes—July 29—Calling all animal lovers! If you're on the…

Guest MINDSETTER™ Tom Sgouros: What Kind of Job is General Treasurer?—Guest MINDSETTER™ Tom Sgouros: What Kind of Job…

Training Camp Talk: Wendell’s Starting Job In Trouble?—Ryan Wendell has been Patriots' starting center for…

LISTEN: Top Ten RI General Assembly Races to Watch in 2014—Rhode Island primaries are now just six weeks…

 
 

City Council Looks to Override Taveras Veto on Affordable Housing

Tuesday, March 04, 2014

 

The line is being drawn by the Providence City Council on an affordable housing ordinance.

The Providence City Council will look to override Mayor Angel Taveras' recent veto of an affordable housing ordinance approved by the council on February 20, at a special meeting on Tuesday, March 4.

See Mayor's Veto -- and Ordinance HERE

The ordinance codifies the 8% affordable housing tax rate authorized under State law, which has historically included new construction.  

Housing Groups, Councl Members Support Measure

Council President Michael A. Solomon said, “Jobs, investment in our neighborhoods, and providing safe, healthy, affordable housing to our residents—these are what this ordinance is all about."

Last Friday, GoLocal reported that the issue was heating up following the Council's approval of the ordinance, which counts among its supporters the West Elmwood Housing Corporation, and the Housing Network of Rhode Island.

Solomon was joined by Majority Leader Seth Yurdin and Councilman Luis A. Aponte, lead sponsors of the ordinance, along with Councilman David A. Salvatore, chairman of the Special Committee on Ways and Means, in expressing disappointment and surprise upon receiving notice of the Mayor’s veto of the affordable housing ordinance.

Yurdin stated, “The Council was surprised to learn about the change in the City’s policy, because Providence has always strongly supported affordable housing. This ordinance acknowledges the predictable tax formula prescribed under state law, which has been on the books since the 1995 and upon which community development corporations rely when seeking financing to build affordable rental housing.”

The ordinance affirms the tax rate for new and rehabilitated affordable residential rental units at eight percent of the previous year’s gross rental income, as provided for under Rhode Island General Laws § 44-5-12 (a) (1) and 44-5-13.11.

“We are living in an era in which there is an increase in the need of affordable rentals and a decrease in available resources to meet that demand,” said Aponte. “Rather than create barriers for affordable housing developers to bring these projects to fruition, the City needs to identify opportunities to simplify the process, and lower the cost of providing affordable homes to fill this housing gap. The Council’s ordinance keeps the City on the path of supporting affordable housing developments with a measure of predictability in operating costs.”

Affordable Housing Impact

According to HousingWorks RI, nearly half of Rhode Island renters spend more than 30 percent of their income on rent alone, and over a quarter (26%) spend more than fifty percent of their income on rent. The organization’s city and town fact sheets show that in Providence (not including the East Side), the average two-bedroom apartment is $1089. The income needed for an apartment at that amount to be affordable would be $43,560, yet median renter household income in the city is just $27,657.

Salvatore noted that the Council’s approval of the ordinance represents due diligence—both in terms of advancing stable neighborhoods through the creation of safe, affordable housing, and fulfilling a fiduciary responsibility to taxpayers. “With the approval by RI Housing of financing for two major affordable housing developments in Providence’s West End, the positive fiscal impact of this ordinance will be significant. The improved properties—with the eight percent tax treatment applied—are projected to bring in close to six times the amount of tax revenue they did in the 2013 tax year,” said Salvatore. “This is a win-win situation for the City and for Providence residents.”

A two-thirds majority—or ten members—is necessary to override the veto.

 

Related Slideshow: The Most Affordable Communities for Renters

In the below slides, communities are ranked from most affordable to least affordable. Affordability is determined based on the ratio of the median income in a community the average rent for a two-bedroom apartment. Find out where your community ranks.

About the ranking: Data was provided by the Providence Apartment Association. Median income figures are taken from the U.S. Census Bureau’s American Community Survey, which provides a five-year sample of incomes between 2007 and 2011. Rents are taken from survey data collected by Rhode Island Housing. Because of the insufficiency of rental data, the following 11 communities are not in the ranking: Exeter, Foster, Glocester, Hopkinton, Jamestown, Little Compton, New Shoreham, Richmond, Scituate, Smithfield, and West Greenwich.

Note: Since median incomes were only available for Providence as a whole, and not able to be broken out separately for the East Side, the apartment rental data for the East Side is included with the rest of the city. The data for the rents in the East Side and the rest of the city was merged using a weighted algorithm based on the approximate geographic range, putting one sixth of apartments on the East Side and rest in the city.

Prev Next

Barrington

Rank: 1

Median Resident Income: $98,612

Average Two Bedroom Rent: $1,154

Percent of Income Spent on Rent: 14%

Prev Next

East Greenwich

Rank: 2

Median Resident Income: $96,591

Average Two Bedroom Rent: $1,335

Percent of Income Spent on Rent: 17%

Prev Next

North Smithfield

Rank: 3

Median Resident Income: $79,005

Average Two Bedroom Rent: $1,151

Percent of Income Spent on Rent: 17%

Prev Next

Cumberland

Rank: 4

Median Resident Income: $72,689

Average Two Bedroom Rent: $1,107

Percent of Income Spent on Rent: 18%

Prev Next

Lincoln

Rank: 5

Median Resident Income: $74,136

Average Two Bedroom Rent: $1,133

Percent of Income Spent on Rent: 18%

Prev Next

North Kingstown

Rank: 6

Median Resident Income: $78,369

Average Two Bedroom Rent: $1,271

Percent of Income Spent on Rent: 19%

Prev Next

Burrillville

Rank: 7

Median Resident Income: $68,898

Average Two Bedroom Rent: $1,138

Percent of Income Spent on Rent: 20%

Prev Next

Coventry

Rank: 8

Median Resident Income: $67,016

Average Two Bedroom Rent: $1,128

Percent of Income Spent on Rent: 20%

Prev Next

South Kingstown

Rank: 9

Median Resident Income: $74,147

Average Two Bedroom Rent: $1,274

Percent of Income Spent on Rent: 21%

Prev Next

Bristol

Rank: 10

Median Resident Income: $64,405

Average Two Bedroom Rent: $1,135

Percent of Income Spent on Rent: 21%

Prev Next

Portsmouth

Rank: 11

Median Resident Income: $76,500

Average Two Bedroom Rent: $1,391

Percent of Income Spent on Rent: 22%

Prev Next

Charlestown

Rank: 12

Median Resident Income: $69,271

Average Two Bedroom Rent: $1,271

Percent of Income Spent on Rent: 22%

Prev Next

Middletown

Rank: 13

Median Resident Income: $71,901

Average Two Bedroom Rent: $1,322

Percent of Income Spent on Rent: 22%

Prev Next

Westerly

Rank: 14

Median Resident Income: $60,432

Average Two Bedroom Rent: $1,123

Percent of Income Spent on Rent: 22%

Prev Next

Tiverton

Rank: 15

Median Resident Income: $63,767

Average Two Bedroom Rent: $1,216

Percent of Income Spent on Rent: 23%

Prev Next

Narragansett

Rank: 16

Median Resident Income: $64,031

Average Two Bedroom Rent: $1,235

Percent of Income Spent on Rent: 23%

Prev Next

Cranston

Rank: 17

Median Resident Income: $58,442

Average Two Bedroom Rent: $1,157

Percent of Income Spent on Rent: 24%

Prev Next

Warren

Rank: 18

Median Resident Income: $53,284

Average Two Bedroom Rent: $1,057

Percent of Income Spent on Rent: 24%

Prev Next

West Warwick

Rank: 19

Median Resident Income: $50,006

Average Two Bedroom Rent: $1,096

Percent of Income Spent on Rent: 26%

Prev Next

Warwick

Rank: 20

Median Resident Income: $59,973

Average Two Bedroom Rent: $1,315

Percent of Income Spent on Rent: 26%

Prev Next

Johnston

Rank: 21

Median Resident Income: $54,880

Average Two Bedroom Rent: $1,213

Percent of Income Spent on Rent: 27%

Prev Next

North Providence

Rank: 22

Median Resident Income: $50,211

Average Two Bedroom Rent: $1,114

Percent of Income Spent on Rent: 27%

Prev Next

Newport

Rank: 23

Median Resident Income: $58,080

Average Two Bedroom Rent: $1,371

Percent of Income Spent on Rent: 28%

Prev Next

East Providence

Rank: 24

Median Resident Income: $49,408

Average Two Bedroom Rent: $1,197

Percent of Income Spent on Rent: 29%

Prev Next

Pawtucket

Rank: 25

Median Resident Income: $39,628

Average Two Bedroom Rent: $1,026

Percent of Income Spent on Rent: 31%

Prev Next

Woonsocket

Rank: 26

Median Resident Income: $39,329

Average Two Bedroom Rent: $1,021

Percent of Income Spent on Rent: 31%

Prev Next

Central Falls

Rank: 27

Median Resident Income: $32,759

Average Two Bedroom Rent: $863

Percent of Income Spent on Rent: 32%

Prev Next

Providence

Rank: 28

Median Resident Income: $38,922

Average Two Bedroom Rent: $1,126

Percent of Income Spent on Rent: 35%

Prev Next

Statewide Average

Median Resident Income: $55,975

Average Two Bedroom Rent: $1,176

Percent of Income Spent on Rent: 25%

 
 

Related Articles

 

Enjoy this post? Share it with others.

Comments:

"According to HousingWorks RI, nearly half of Rhode Island renters spend more than 30 percent of their income on rent alone, and over a quarter (26%) spend more than fifty percent of their income on rent. The organization’s city and town fact sheets show that in Providence (not including the East Side), the average two-bedroom apartment is $1089. The income needed for an apartment at that amount to be affordable would be $43,560, yet median renter household income in the city is just $27,657."

Which is why most single people with a two bedroom apt get a roommate. Or is it policy that people making 27K a year are entitled to live in a two bedroom apt?

Comment #1 by Jimmy LaRouche on 2014 03 04




Write your comment...

You must be logged in to post comments.