On Friday morning, Providence Mayor Brett Smiley promptly vetoed the rent stabilization act passed by the city council on Thursday night.
In a signed letter to the council president, Smiley said that rent control discourages new construction, constrains housing supply, and ultimately makes it harder for the tenants the policy aims to protect.
“In Providence, this ordinance would also shift the tax burden onto single-family homeowners, placing additional pressure on working families and small property owners while still exempting about half of our rental units from the policy,” Smiley wrote.
The council now has a 30-day window to override Smiley’s veto, but doing so would require a super majority of 10 out of 15 city councilors.
Supporters of rent stabilization are currently one vote shy of that threshold. The council voted 9-6 in support of the ordinance on both readings.
If the ordinance passes, it would cap annual rent increases at 4% for most apartments in Providence, with exemptions for smaller owner-occupied buildings and recently constructed units.
Landlords could also appeal to a special board for the right to make larger rent increases.
Groups pushing for the rent stabilization ordinance say the issue will become a defining feature of the mayor’s ongoing re-election campaign against challenger David Morales, who supports the policy. Morales currently represents Providence’s Mount Pleasant, Valley, and Elmhurst neighborhoods as a state representative.
Reclaim RI, a progressive advocacy group backing Morales, released a statement saying Smiley had “sided with corporate landlords over the people of Providence.”
“Rent stabilization is overwhelmingly popular, and the mayor will face consequences for his decision this September,” said Daniel Denvir, Reclaim RI’s co-chair.
As the city council gears up for what could be a final vote on the Providence Rent Stabilization Act, Smiley is pushing an alternative outlined in his budget proposal, which now stands before the council for approval.
Smiley is seeking to set aside $1 million to fund grants of up to $3,000 for struggling households facing eviction. He also proposed setting aside $500,000 to support free legal representation in housing court.
