The Providence City Council moved a step closer on Thursday to approving a measure that would cap rent increases in Providence to 4% annually.
The council approved a rent control proposal 9-6. That falls short of the 10 votes necessary to override a mayoral veto, which Providence Mayor Bretty Smiley says he plans to issue. The council plans to take a second and final vote on the proposal this month.
Supporters of the ordinance say it’s a necessary step to maintain rent affordability in the city.
“I know the market won’t solve this problem on its own,” City Council President Rachel Miller wrote in an op-ed. “Meaningful, thoughtful intervention is necessary to protect the interests of Providence families.”
Smiley disagrees on rent control. He thinks the policy would slow new construction, worsening the city’s existing housing shortage.
Smiley sat down with Ocean State Media morning host Luis Hernandez to discuss his opposition to rent control and why he plans to veto the ordinance.
Interview highlights
On whether it is still true he would veto a rent stabilization ordinance
Brett Smiley: It is.
Unfortunately, the proposal that the city council has in front of them is going to lower no one’s rent. In fact, it will perversely, I think, make the problem worse. Where this has been implemented around the country, new construction has slowed down. We have a supply shortage in Providence. Two thirds, perhaps, of the Providence rental market will not be in a rent control apartment. So those other apartments will continue to see rental increases and the ones that are rent-controlled are going to be subjected to maximum rent increases under the cap every year because that’s what happens in these scenarios.
The way in which we actually bring the cost of rentals down in Providence is to build more. We have a supply shortage, and so we’re making great progress in that respect. And along the way we know that there’s some people who are really in crisis, which is why I’ve rolled out an alternative, which is a rent relief program, which provides actual cash rental assistance to families in crisis so that they can stay in their homes, get caught up on their mortgage or their rent, and provide relief to people who need it now, which is not what the rent control policy or proposal does.
On the need for more housing in Providence
Smiley: So we’ve got thousands of units that have been produced over the last couple of years. In the previous fiscal year, we brought online over 800 new housing units in Providence, 22% of which are permanently affordable subsidized apartments. Part of my housing package this year is to go back to the voters for another $25 million affordable housing bond just for Providence that’s separate and gets added to whatever state bond that passes. And so we, as a city, have prioritized housing production – particularly affordable housing production – and we’re subsidizing affordable housing production because we need to, because we know there’s families who need that market rate housing… But to ensure that some of these homes are available to families who are middle or lower income, we’ve been subsidizing those projects and we’re going to keep doing them ‘cause it’s the right thing to do.
On the expense of administering rent stabilization
Smiley: The Council has an obligation to produce what’s called a fiscal note, which is the accounting for how they’re going to pay for this and what effect it’s going to have on the city budget. The fiscal note that they generated is lacking in many ways. We’ve provided that feedback to them, publicly pointing out the ways in which we think they’ve underestimated how much this is going to cost city taxpayers to administer. So it’s up to them to turn around and give the public a real accounting for how much this is going to cost to administer.
To be honest about the burdens here, Portland, Maine, which is a much smaller city, but in our area; when they passed a similar version, it took them five years to figure out how to implement it. So for all of the discussion around this policy, in addition to the fact that it literally lowers no one’s rent, it might also take years to take effect because that’s what’s happened in other communities, including smaller communities. A bigger city like Providence could take even more time.
