PROVIDENCE – Gubernatorial candidate Helena Buonanno Foulkes on Monday introduced her comprehensive “Rhode Home Program” housing plan that would create a revolving fund to finance the building 20,000 new homes and apartments supported by a new tax on high-income earners.
Estimates are that the state must add tens of thousands of new housing units to meet the growing demand, and Foulkes argues the investments to date have fallen short.
“When I talk to Rhode Islanders, they tell me how much they love living here, but I also hear that the cost of buying or renting is making it harder and harder to stay,” said Foulkes. “Housing in Rhode Island costs too much because we lack adequate supply.”
The centerpiece of her plan is a proposed millionaires tax, which would impose a 3% income tax on individuals earning over $1 million, which the campaign projects would generate more than a billion dollars within eight years.
Foulkes said that “at a time when the wealthiest people in the country – and in Rhode Island – are benefitting from Trump tax cuts that have given the most away to the people who need it the least, my proposal will tax the wealthiest in the state to build the homes and apartments we need to make living in Rhode Island affordable.”
The revenue would be allocated to a revolving loan fund that supports homebuilding projects and recoups investments through rents or sales once the housing is completed.
In addition to standard housing projects, the Rhode Home Program includes financing for accessory dwelling units; overhaul the historic tax credit which provides a 20%–25% tax credit for rehabilitating income-producing historic buildings; restoring incentives for developers to renovate vacant historic buildings into homes; and allocates funds for rental support to assist families while new housing is being developed.
The plan would set aside 5% of fund dollars for rent relief for the first four years, being phased out “as more homes and apartments come online and rents decline,” according to Foulkes.
There is also an emphasis on low-cost modular materials and other construction methods to decrease building costs, making Rhode Island a “Modular Home Manufacturing Hub” by attracting modular construction companies to the state.
Plus, there are provisions to cut red tape by simplifying the approval processes for housing projects and using idle state-owned properties for housing development.
Foulkes is also proposing a constitutional amendment to ensure the revenue generated is dedicated solely to housing initiatives to prevent future misallocation of funds.
While Gov. Daniel J. McKee in his fiscal year 2027 budget proposal includes a 3% surtax on income above $1 million, indexed to inflation, that additional tax revenue generated would go to the state’s general fund.
Foulkes vowed that if elected her Rhode Home Program would be audited annually, “and the Office of Inspector General will have access to any documents they need from my administration.”
In response, McKee campaign spokesperson Christina Freundlich on Monday released a statement calling Foulkes’ plan “lackluster” while criticizing her record in the private sector as an executive with CVS.
“After decades in corporate boardrooms prioritizing profits over people, Helena Foulkes is now asking Rhode Islanders to trust her on housing affordability – but her record makes her priorities crystal clear,” said Freundlich.
While the state has dedicated hundreds of millions of dollars to address the housing crisis, Foulkes cited national data showing Rhode Island remains last in the nation for new housing starts, with fewer than 1,000 new units added last year.
“I will be a governor who will get shovels in the ground to build tens of thousands of new homes and apartments that Rhode Islanders can afford,” she said.
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
