Providence City Council Approves Final Passage to Rent Control, Faces Smiley Veto Threat

Providence City Council Approves Final Passage to Rent Control, Faces Smiley Veto Threat

The Providence City Council gave second approval to the rent control ordinance.

 

Ordinances require two passages and now heads to Providence Mayor Brett Smiley for consideration.

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Smiley has pledged to veto the ordinance.

 

The City Council press releases said, "For the first time in Providence’s history, the City Council has passed legislation to rein in extreme, unexpected rent increases, bringing predictability, fairness, and accountability to a housing market where costs have risen far beyond what residents can afford. In recent years, Providence has been named the least affordable city for renters in the country and the U.S. city with the fastest year-over-year rent growth, even as the national median rent declined. The median rent in Providence is 40% higher today than it was in 2020. Nearly half of Providence renters spend more than 30% of their income on rent, while 26% spend at least half their income on rent."

 

Realtors, developers, and landlords have vehemently opposed the ordinance.

 

Shannon Weinstein, Director of the Rhode Island Coalition of Housing Providers, said in a statement, “We are disappointed in the Council’s decision to move forward with a policy that, despite its intentions, will not deliver the relief that Providence residents are seeking. Evidence from cities across the country has consistently shown that rent control does not lower rents and can instead create unintended consequences —reducing housing supply, discouraging investment and increasing costs over time."

"Providence residents deserve solutions that address the actual cause of our housing challenges, which is a lack of supply," Weinstein added.

The ordinance caps annual rent increases at 4%, with thoughtful exemptions and clear ways for property owners to address legitimate costs. According to the ordinance’s sponsors, the proposal reflects a balanced, Providence-specific approach that stabilizes housing for residents while supporting continued investment in the city’s housing stock.

 

“This City Council has addressed every aspect of the housing affordability crisis, from increasing supply to protecting our aging housing stock, but until tonight we hadn’t taken direct action to provide stability for Providence residents who rent their homes,” said Council President Rachel Miller (Ward 13). “Despite the power large corporate landlords wield—the same landlords that have pushed rent up and working families out—despite the pervasive myths that have attempted to create a climate of fear where inaction is better than action, this Council voted to protect this city we love and the diverse residents who call it home.”

State Representative and mayoral candidate David Morales said, “Capping rent increases at 4% a year is not radical. Our neighbors need stability and the peace of mind that they can continue to call Providence home. I commend the city council for passing the Rent Stabilization ordinance and advancing it to the Mayor’s desk. As mayor, I would immediately sign this ordinance and present a city budget that funds the necessary resources to enforce this critical law. With rents in our city increasing by more than 40% since 2020, Providence is now the least affordable city in America for renters."

"While there is still more work ahead to make Providence a city all our neighbors can afford, the city council has taken a critical first step towards addressing this affordability crisis. And we know that our neighbors overwhelmingly support this new law as evident in recent polling and the local base of support our campaign has built with donations from over 1,000 neighbors who call Providence home. If Mayor Smiley vetoes this bill, as expected, I look forward to the city council overriding his veto and standing up to the corporate campaign donors influencing the Mayor’s veto,” added Morales.