PROVIDENCE – The city plans to redevelop a vacant Federal Hill parcel into affordable housing as part of a new approach to the future redevelopment of underutilized land, Mayor Brett P. Smiley announced Monday.
The Providence Redevelopment Agency will acquire 322 Washington St. for approximately $1.7 million and enter a public-private partnership with Lincoln Avenue Communities to develop the site, oversee construction and manage the units long-term.
The half-acre parcel just west of Interstate 95, next to the city's public safety complex and within a minute walk to downtown, was the site of a proposal 76-room hotel eight years ago. The plan received approval from the City Plan Commission but did not proceed.
Three years ago, a 76-unit affordable housing project was proposed, and it also did not move ahead.
The acquisition was announced the same day the Smiley administration released a new housing report that outlined the progress Providence made in fiscal 2025 while outlining a three-part framework approach to the future redevelopment of underutilized land.
Scott Shaw, vice president and regional project partner for development at Lincoln Avenue Communities, said the Washington Street project is “a vital step toward ensuring that downtown Providence remains a place where everyone can live, work and thrive.”
All units will have income restrictions, with 68 of them designated as affordable for households earning between 60% and 80% of the area's median income. And eight units will be reserved for individuals earning between 0% and 30% of the AMI.
Calling the Washington Street acquisition “another example of Providence taking concrete steps to ensure housing is accessible to as many residents as possible,” Goddard said the city “is demonstrating proactive and essential housing production for Rhode Island’s capital.”
“We urge Providence to serve as a model for other communities by continuing to allow for varying types of development that will ensure a robust and affordable housing stock for generations to come,” added Clement.
Joined by members of the Providence Redevelopment Agency, state officials and housing advocates including R.I. Housing Secretary Deborah Goddard and HousingWorks RI Executive Director Brenda Clement, city officials said the new housing approach leans on “production, preservation and protection.”
The report calls for the creation of new state housing bond funds, increased discretionary funding, expanded tenant protections, support for homelessness initiatives and reinvestment in the Providence Housing Trust Fund to continue providing gap financing for housing projects.
In fiscal 2025 which ended June 30, Providence issued permits for 857 new residential units, surpassing larger cities such as Boston and New York City, according to the report.
Total funding committed to affordable housing projects via the Providence Housing Trust Fund exceeded $55 million through fiscal 2025, the report stated. The city has also invested an additional $10 million using U.S. Housing and Urban Development grants supporting the creation and preservation of more than 2,000 units, including more than 1,600 deed-restricted affordable units.
According to the report, the city's Department of Inspection and Standards conducted nearly 15,000 inspections citywide; about 4,000 were related to code enforcement, with 1,162 specifically focused on lead-based paint violations.
The city also continues to provide tax stabilization agreements for qualifying developments. The report says nearly 200 eligible multi-family rental properties with qualifying affordable apartments benefit from special local tax treatment under the so-called “8 Law.”
