Providence City Council Meeting – June 11, 2026: Affordable Housing Tax Ordinances and Resolution
Providence City Council Meeting – June 11, 2026
The Providence City Council met on Thursday, June 11, 2026, at 6:06 PM, with Chair Sandhex presiding and Council President Rachel Miller in attendance. The meeting focused on three agenda items: an ordinance to clarify the 8% tax treatment for low-income housing, the Providence Build Act providing short-term tax stabilization for affordable housing construction, and a resolution endorsing state legislation on taxation. All items were approved unanimously.
Item 1: Ordinance Amending Chapter 21 – 8% Tax Treatment for Low-Income Housing
- A presenter introduced a substitute ordinance that sets clear eligibility criteria for the 8% tax treatment, aligning with state law and other affordable housing programs. Key thresholds: buildings with 40% of units restricted to 60% or less Area Median Income (AMI) or 51% of units at 80% or less AMI qualify for the treatment on the entire building. Properties qualifying for Low-Income Housing Tax Credits (LIHTC) also qualify.
- The ordinance includes a preservation clause for existing properties receiving the 8% treatment: they continue to qualify if at least 20% of residential units are at 80% AMI or less, or at least 40% at 120% AMI or less. Examples cited include University Heights and 93 Cranston Street.
- The ordinance prohibits application to commercial properties and requires annual reporting to the council.
- Councilmembers expressed support, noting it closes loopholes and ensures that the tax benefit serves intended low-income housing, not luxury or commercial developments. The administration’s letter, received 20 minutes before the meeting, was discussed; the 51% threshold was adjusted to align with HUD CDG and RI 2030 programs. Other feedback (e.g., a nominal fee) was not incorporated.
Item 2: Providence Build Act – Tax Stabilization for Affordable Housing Construction
- A second presenter (Aaron) detailed the ordinance, which creates a two-year tax stabilization period for qualifying affordable housing projects during construction. Eligible rental projects must include at least 40% of units at or below 80% AMI or 30% at 60% AMI or below. Homeownership projects also qualify; after occupancy, they are taxed under state law.
- Mixed-use projects can receive stabilization for commercial portions only during construction, after which commercial spaces are taxed at the commercial rate.
- The ordinance streamlines the application process, requiring certification from Housing and Human Services and Planning and Development, and mandates individualized public hearings per state law. The default and cure period is shortened to fit the two-year term.
- Councilmembers noted the ordinance addresses a gap where developers faced high taxes on land during construction, hindering project financing. The administration’s recommendations were largely incorporated, except for a nominal fee during construction, which sponsors rejected to keep the process streamlined.
Item 3: Resolution Endorsing State Bills on Taxation
- The council considered a resolution supporting House Bill 2026-H7775 and Senate Bill 2026-S-2897, which would accelerate taxation on certain properties. Discussion revealed that the House bill had been recommended for further study, while the Senate version had passed committee. The resolution was intended to signal municipal support to the General Assembly.
Key Outcomes
- Item 1: Motion to approve the substitute ordinance as amended carried unanimously (no dissenting votes recorded).
- Item 2: Motion to approve the substitute ordinance as amended carried unanimously.
- Item 3: Motion to approve the resolution carried unanimously (motion by Councilor Graves, second by Councilor Davidson).
- All three items were approved without recorded opposition.
Meeting Transcript
Let's go. Please is this for me. Hi, good evening everyone. Thursday, June 11 times 606. Chair Sandhex. Present. Vice Chairman Taylor is absent. Councillor Davidson. Councilman Graves. Councilman Peterson is absent the food president to act in the form. Thank you. I want to recognize our council president Rachel Miller for joining us today. Thank you. An ordinance amending chapter 21, revenue and finance of the province political ordinances to add Article 19. Thank you. So who will be presenting on idol? I'm going to present some eight law. Thank you. Hi everybody. Lovely to be here with you all. It's been a while since this was first introduced in 2024. So if there were buildings with de restricted affordable units and there were market rate units, this tax treatment would have just under that ordinance applied to the low-income units themselves. Rather than like the original one apply just to the restricted units, uh that version set a threshold for affordability. The new latest version in front of you keeps the threshold that was set, adjusts it slightly, and I'll walk through the specific specifics of that, but it also generally aligns this with other low-income housing programs and subsidies and tax credits. Was that it can be very confusing and difficult and unnecessarily cumbersome when there's different eligibilities for all these different programs. And counselors didn't want to add to that, right? They counselors uh seem to want to align this with others so that those who are providing low-income housing were taxed appropriately. Um and that's really what this is making sure they're taxed appropriately. Um, so if you open the uh red line version of the ordinance, um so that's the substitution seeking. What's one thing that's important to note this can be a little bit confusing? Oftentimes when there's their red line ordinances, it's amendments to an existing ordinance. But in this context, there is no existing ordinance. There's nothing in the books on eight law in the code of ordinances, right? There's the state law, and then there's a proposed municipal ordinance, and this is red lines on that proposal. So what's confusing about this is all these words are new, whether there's a red line or not, these are all a proposed ordinance. Does that make sense? Okay, yes. Um, okay, so you have your standard definitions, but let's really get into the meat of it, which starts in eligible properties, section 21314. Um, so what this ordinance does is absent the estate definition of low-income housing for the 8% tax treatment, it sets forth exactly what the eligible properties are. Because we know that right now when it's without any guidance, sometimes the 8% tax treatment is given to properties that have a just a few restricted units, maybe even at 100% of the area needed income, and the rest of the building maybe market rate or luxury. Um, so this sets clear eligibility. So you'll see in this eligible properties. Um, if you go to two A and B, these uh say that the 8% tax treatment is only going to properties that have deed restrictions where rents are being restricted to 30% of incomes and where incomes are being restricted to the threshold set in three. So in three here, you'll see there are two pathways to qualify for eight law the threshold and uh the uh having the eligibility for LITEC. So you'll see these thresholds here. If your building has 40% of units restricted to 60% or less AMI, you would qualify for the 8% tax treatment for the entire building. If your building has 51% of units at 80% or less AMI, the building would qualify. Um, I know that you all I imagine haven't had the chance to read, but received a letter from the administration about 20 minutes before this meeting. Uh, in that letter, you'll see that 51% number mentioned. So this was a change in alignment with the letter that the administration sent because there's some programs, and two of note are HUD CDG and the RI 2030 small scale rental threshold.
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