PROVIDENCE – The City Council outlined a new rent stabilization proposal aimed at curbing rising housing costs on Tuesday.
Under the plan, landlords would be able to raise rents by up to 4% per year without additional approval; any increase above that would need to be reviewed by a rent board, a spokesperson from Council President Rachel Miller's office confirmed.
The measure is designed to provide predictability for renters while allowing the city’s housing market to continue functioning.
Exemptions would apply for newly constructed buildings and owner-occupied “mom-and-pop” properties, according to the spokesperson.
City officials said the full text of the proposal is expected to be posted on the City Council website in the coming days, detailing exemptions, enforcement and implementation timelines.
Under city rules, the proposal must undergo public hearings, council votes and receive the mayor's approval before it can be implemented.
Mayor Brett P. Smiley has said he will veto the proposal if it reaches his desk, a spokesperson for the mayor confirmed.
Smiley expressed concern that rent control could backfire and worsen the city’s housing shortage.
"The Administration was not involved in crafting this proposal, and evidence suggests caps can disincentivize construction and reduce the quality and number of units," Smiley said in an emailed statement to Providence Business News on Tuesday. "Instead, the city is focused on long-term, supply-driven strategies to improve housing affordability."
Tuesday's announcement comes amid ongoing discussions about housing affordability in Providence. A report from The Providence Foundation and the Rhode Island Public Expenditure Council released earlier this month highlighted potential drawbacks of rent control, citing nationwide examples in which strict caps reduced housing supply, prompted condo conversions and lowered property tax revenues.
The report recommended supply-focused solutions such as zoning reforms, incentives for commercial-to-residential conversions, and direct rental assistance programs.
Meanwhile, a report by the City Council’s Housing Crisis Task Force, released in September, recommends exploring rent stabilization as part of a broader housing affordability plan.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
Is the city also going to limit increases to property taxes, insurance and utilities? I understand the motivation, but this is not a good idea for the city.