PROVIDENCE – Mayor Jorge O. Elorza has signed into law a non-utilization tax designed to combat vacant and abandoned property in the city, the mayor announced Monday.
The tax, which currently applies only to residential properties, would allow for the city to impose a tax on a vacant or abandoned property at a value set at 10 percent of the property’s assessed value.
The tax will not be imposed on property owned by an abutting neighbor, a new owner nor a nonprofit housing organization if a proposed development plan for the property has been submitted; if determined to be within a reasonable timetable for development or reuse; there is adequate funding for implementation; or if the property is in accordance with the approved comprehensive plan and zoning ordinances of the city.
Eligible properties may be ones that have been determined to be continuously unoccupied, under continuous citation, not maintained as evidenced by the building’s exterior condition, or a lot with no existing structure that is littered with trash and is “obviously abandoned.”
“It is in the best interest of all Providence residents that we address the vacant and abandoned properties that negatively impact the quality of life in our communities,” said Elorza in a statement. “The non-utilization fee aligns with our EveryHome program by holding property owners accountable while encouraging them to rehabilitate properties into productive reuse. This powerful tool will help us to support stronger, more vibrant neighborhoods throughout the capital city.”
The mayor signed the law on Oct. 9, following vetting and recommendation of passage by the Providence City Council on Oct. 4.
To enforce the ordinance the Department of Inspection and Standards will inspect a property and designate it vacant or abandoned. The owners of the property will then be notified in writing of the date of designation and the date of the imposition of the tax.
City Council President Pro Tempore Sabina Matos stated Monday, “Abandoned and neglected properties in our neighborhoods cause real-time issues for neighbors besides potentially being an eyesore. They bring down property values; they can draw pests, become sites for illegal activity, and can destroy the character of a neighborhood. Keeping property owners accountable will not only help preserve our unique and diverse neighborhoods but will also improve the quality of life for all our neighbors.”
The Mayor’s Office said that city departments are currently working to establish rules and regulations to implement the ordinance. According to the legislation, 50 percent of all taxes collected through the program will be put into an affordable housing trust fund.
Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com.