Open in App
  • Local
  • Headlines
  • Election
  • Sports
  • Lifestyle
  • Education
  • Real Estate
  • Newsletter
  • WPRI 12 News

    Providence rent control debate intensifies with skyrocketing costs

    By Alexandra Leslie,

    2024-05-20

    https://img.particlenews.com/image.php?url=1cGteQ_0tC7amrm00

    PROVIDENCE, R.I. (WPRI) — A Rhode Island lawmaker is pushing a bill that would bring rent control to Providence, a controversial topic that’s been proposed before but never implemented in the state.

    In March, Rep. Enrique Sanchez, D-Providence, introduced a bill that would authorize the city of Providence to adopt rent control ordinances . Rent control limits the ability of landlords or property owners to raise the rent by a certain percentage per year.

    The bill doesn’t lay out specifics on how it would work in Providence, rather it puts it on the city to has out the details.

    “The bulk of the population of the state is our renters and a lot of people, not just in Providence, but all across every community in Rhode Island, people are feeling the burdens of the housing crisis and high rents,” Sanchez told Target 12.

    According to HousingWorks RI , households in Providence are 60% owner-occupied, and 40% are renters. The research and policy group at Roger Williams University found nearly 50% of renters in the region are “cost-burdened,” meaning they pay more than 30% of their income toward housing costs.

    Sanchez admitted the current rental market is tough for both landlords and tenants alike.

    “We know that folks have expenses in order to maintain their properties, but there has to be a balance,” Sanchez said.

    But some property managers say freezing rents would actually make the housing crisis worse.

    Shannon Weinstein, a partner and broker at RentProv Realty, said policies like rent control deter investment in building. Weinstein also spoke to Target 12 on behalf of the Rhode Island Coalition of Housing Providers, a organization comprised of landlords statewide.

    She said the solution is not rent control, but adding more rental units.

    “To really get the marketplace to where it needs to be, it needs to have more competition,” Weinstein said. “Prices might come down, quality goes up, and that’s what’s going to ultimately help renters, too.”

    Monica Dansereau has been a landlord for more than 30 years. She and her husband manage two properties in Johnston.

    “This is our living,” said Dansereau. “This is, this is my livelihood for my retirement.”

    Dansereau said she has been lucky enough to have longtime tenants and minimal issues over the years but said the “landscape has changed,” and she has had to raise the rent on occasion. She said rising insurance, labor, and oil costs as a driving force for raising prices.

    RELATED: RI renters struggle as cost of typical apartment nears $2,000

    “The cost of homeownership right now, versus 10 years ago, has increased about five times [greater],” Weinstein said. “Those costs get passed down to landlords as well, and then that gets passed on to the tenant.”

    The power to establish rent control ultimately lies in local government, but it’s a measure Mayor Brett Smiley has been outspoken against.

    Smiley said he believes creating more housing would solve the problem and that a measure like rent stabilization would be both unfair and inequitable.

    “Some people get lucky and get a rent-controlled apartment. Some people don’t,” Smiley said.

    Sanchez told Target 12 that while he did not believe rent control would be feasible under the Smiley administration, he proposed it because it was a measure that tenants and tenants’ rights groups supported.

    The bill was referred to the House Municipal Government and Housing Committee but recommended to be held for further study.

    “I recognize that as a prime sponsor, these bills… we’re not going to move on them anytime this year or next year, or anytime soon,” Sanchez said at April 11’s committee hearing. “But, it’s just to get the conversation going, to get a dialogue going for all communities.”

    The mayor said his administration is attempting to take steps to spur more housing, like significant reforms to the Department of Inspections and Standards to make it easier to get a permit to build. The city’s comprehensive planning process is also underway.

    “We’re doing widespread up zoning, allowing for bigger, more dense buildings in most of our neighborhoods to make it easier to build and to build bigger,” Smiley said.

    Smiley said that measure will be considered by the Providence City Council this summer.

    Last week, councilors approved an amended ordinance that defines low and moderate-income housing funded through the city’s housing trust. The new definition states housing is considered “affordable” when the rent or mortgage is limited to 30% of the resident’s monthly income.

    “With this updated language, we are ensuring that Providence Housing Trust Fund funds are reserved for the affordable housing we so urgently need in our neighborhoods,” Councilor Justin Roias said. “Now these funds are protected and directed toward housing that is affordable for our resident renters or homeowners.”

    The City Council will also have a nother shot at passing a so-called “8-Law” ordinance , which they say will incentivize low-income housing development. Smiley vetoed its first try.

    The council argued at the time that the ordinance would strengthen rules around the law that gives developers tax breaks if they create affordable housing. The law has become highly controversial in recent years amid concerns it’s being exploited to the advantage of wealthy landlords.

    The mayor is separately trying to make changes to the law at the state level.

    Alexandra Leslie ( aleslie@wpri.com ) is a Target 12 investigative reporter covering Providence and more for 12 News. Connect with her on Twitter and on Facebook .

    Close

    Thanks for signing up!

    Watch for us in your inbox.

    Daily Roundup

    Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

    For the latest news, weather, sports, and streaming video, head to WPRI.com.

    Expand All
    Comments / 3
    Add a Comment
    sickofliblies
    05-21
    people better be careful about what they wish for. the absolute over reach of government that will save you today will inevitably destroy you tomorrow. The freedoms that we fought for and won against tyrannical Britain. taxation without representation and taxes that crushed the working class are now being embraced by misguided people who believe that the almighty government will be their savior.
    Iris Resendes
    05-21
    Bajen esa renta pues estamos pasándolo muy mal ya que esa renta está cada vez más alta y nadie piensa en el bolsillo de nosotros, por favor pasen esa ley que la nesecitamos y no solo eso los landlord no arreglan los apartamentos, están cundido de ratones, cucarachas y insectos algo muy desagradable para todo el mundo en general… sinceramente Sra Iris Resendes
    View all comments
    YOU MAY ALSO LIKE
    Local News newsLocal News

    Comments / 0