Providence Councilors Propose Law to Boost Low-Income Housing Development

New legislation would provide tax stabilization to affordable housing developers during construction phase.

Apr. 1, 2026 at 9:21pm

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Providence City Council leadership has proposed new legislation called the Boosting Urban Investment to Launch Development Act that would support low-income housing developers during the period between groundbreaking and when a special 8% property tax rate goes into effect upon occupancy. The bill would use a tax stabilization agreement structure to provide this support, aiming to remove financial barriers and accelerate the delivery of affordable housing.

Why it matters

The proposed legislation addresses a gap in the existing '8 Law' that only provides the special 8% property tax rate once low-income housing units are occupied. This gap can place developers in a precarious financial position as they operate on thin margins and face unexpected delays during construction. The new bill seeks to provide more predictability and consistency for affordable housing projects.

The details

The Boosting Urban Investment to Launch Development Act would offer limited property tax stabilization for developers of affordable housing units starting at the time of construction, rather than waiting until occupancy. This would use a tax stabilization agreement structure to support low-income housing projects during the period between groundbreaking and when the special 8% property tax rate kicks in. The council says this will remove process barriers and ensure developers have the resources they need to finance these projects.

  • The legislation will be formally introduced at the Providence City Council meeting on Thursday evening.
  • The special 8% property tax rate for low-income housing only applies once units are occupied, under the existing '8 Law'.

The players

Rachel Miller

The Providence City Council President and co-sponsor of the proposed legislation.

Juan M. Pichardo

The Providence City Council President Pro Tempore and co-sponsor of the proposed legislation.

Melina Lodge

The executive director of the Housing Network of Rhode Island, who expressed support for the legislation.

Brett P. Smiley

The Mayor of Providence, whose office said he shares the City Council's goal of lowering housing costs.

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What they’re saying

“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.”

— Melina Lodge, Executive Director, Housing Network of Rhode Island

“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.”

— Rachel Miller, Providence City Council President

What’s next

The Providence City Council will formally introduce the Boosting Urban Investment to Launch Development Act at their meeting on Thursday evening.

The takeaway

This proposed legislation aims to address a key financial gap for low-income housing developers in Providence by providing property tax stabilization during the construction phase. If passed, it could help accelerate the delivery of affordable housing units and support the city's efforts to tackle its housing affordability crisis.