Providence City Council Committee Advances Rent Stabilization Ordinance on March 26, 2026

The Special Committee on Health, Opportunity, Prosperity, and Education of the Providence City Council met on Thursday, March 26, 2026, to consider a proposed rent stabilization ordinance. After a detailed presentation by a national policy expert, extensive discussion, and the introduction of two amendments, the committee voted unanimously to approve the Providence Rent Stabilization Act as amended, sending it to the full council for a final vote.

Consent Calendar

• Motion to approve the minutes of the previous meeting (Sub A) was moved by Councilwoman Shelley Peterson, seconded by Councilman Miguel Sanchez, and passed unanimously.
• Motion to enter Exhibit 1 (a report) into the record was moved, seconded, and passed.
• Motion to enter Exhibit 2 (the presentation) into the record was moved by Councilman Royas, seconded by Councilwoman Peterson, and passed.

Discussion Items

Presentation by Tram Hong, Senior Associate, PolicyLink

• Tram Hong presented virtually from the Twin Cities, Minnesota, providing an overview of rent stabilization policies across the U.S. and addressing common misconceptions.
• Key statistics highlighted:
  • If Providence renters were not cost-burdened in 2022, they would have gained over $358 million in disposable income.
  • Rent-stabilized tenants save significantly: $3,600/year in Los Angeles, $6,000/year in New York City, and up to $18,000/year in Manhattan.
  • In Cambridge, Massachusetts, stabilized rents were 44% lower than non-stabilized units before abolition.
  • Moving rates in Los Angeles decreased by 37% after adoption, with the greatest impact on Black and Latinx renters.
  • In New York City during the 1990s, rents in unregulated apartments in gentrifying neighborhoods increased 43% on average, compared to only 11% in stabilized units.
• Hong argued that rent stabilization does not reduce new housing construction, citing studies from New Jersey, Los Angeles, and Washington, D.C., and noting that other factors (interest rates, tariffs, supply chain issues) have far greater influence.
• She presented scenario modeling from Minneapolis showing that even without rent stabilization, average landlord returns would have been similar to those under a 75% CPI cap, and that strict caps would only affect a minority of units.
• Hong praised the proposed Providence ordinance for avoiding common design flaws, including a 180-day backdate for base rent, clear utility billing rules, 90-day off-market requirement, partial vacancy decontrol, housing standards compliance, proportional property tax adjustments, tenant notice requirements, hearing timelines within 90 days, allowance of collective complaints, and enforcement via fines.
• She noted that the proposed 4% cap (with a potential 10% cap after board approval) is well within the range of other cities, many of which cap rent increases at 2–5%.

Council Member Questions and Comments

• Councilwoman Shelley Peterson asked about the potential shift of tax burden to single-family homeowners. Hong responded that long-term studies show rent stabilization does not reduce property values, so the tax burden shift is unfounded.
• Councilman Royas asked about St. Paul's experience, including claims of rising rents and a drop in construction permits. Hong clarified that St. Paul's slower development market predates rent stabilization, and that permit data shows the drop occurred before the policy was even on the ballot. She also noted that Minneapolis, without rent stabilization, has seen a steeper decline in permits than St. Paul.
• Councilman Miguel Sanchez asked about political challenges and lobbying by real estate interests. Hong discussed the coordinated efforts to pass state preemption laws in the 1980s and the use of fear tactics, urging the committee to rely on empirical evidence from 200 jurisdictions.
• Chairman Picardo asked about the CPI-based formula vs. the flat 4% cap. Hong explained that the flat cap is common in cities and avoids the high inflation problems experienced by CPI-based policies. She also noted that the appeal process for landlords to exceed the cap is generally effective and rarely used, citing Montgomery County where only 3 applications were received for 63,000 units in the first year.
• Councilwoman Mary Kay Harris asked about the claim that rent stabilization disproportionately benefits higher-income renters. Hong debunked this, noting that lower-income renters save a larger proportion of their income, and that people of color disproportionately benefit due to historical housing discrimination.
• Councilman Royas asked about the frequency and approval rate of landlord petitions before rent boards. Hong said data vary by jurisdiction but that low application rates indicate the policy is working; she cited Montgomery County's experience as typical.

Council Member Statements

• Councilwoman Althea Graves commented that fear tactics used against rent stabilization are similar to those used in Massachusetts before abolition, which did not lead to a construction boom.
• Chairman Picardo emphasized the extensive public engagement process and the need to act, noting that the ordinance is part of a broader strategy including zoning reforms and housing trust funds.
• Councilman Miguel Sanchez expressed strong support, highlighting that 400 students in Providence Public Schools are experiencing homelessness and that the ordinance will help protect the fabric of neighborhoods.
• Councilman Royas shared a personal story of a constituent living in her truck due to a sudden rent increase, arguing that the city should have passed rent stabilization years ago.
• Councilwoman Shelley Peterson, who came into the meeting undecided, presented two amendments based on her ward's concerns about student housing impacts:
  1. New construction exemption will not apply to units within a college student residential overlay district.
  2. The city will annually request five-year enrollment projections from colleges and universities, to be compiled and shared with the council.
• She noted that in Ward 14, the median household income is $39,400, with 66% of residents renting, and nearly half are cost-burdened (spending over 30% of income on rent).

Key Outcomes

• The committee voted unanimously (with all present members in favor) to approve the Providence Rent Stabilization Act as amended by Councilwoman Peterson. The motion was made by Councilwoman Peterson and seconded by Councilmen Sanchez and Royas.
• The ordinance will now move to the full City Council for a final vote.
• The approved ordinance includes a 4% annual rent cap (with a possible 10% cap after a board hearing), exemptions for new construction (with the exception of units in college student residential overlay districts), and provisions for landlord appeals and collective tenant complaints.