“Today, Mayor Brett Smiley vetoed the 8 Law Ordinance, which the Council passed last week overwhelmingly on a vote of 13 to 2.

We have a housing crisis in our city, with outrageous rents Providence residents can’t afford. The Council acted on an ordinance that protects affordability by defining ‘low-income’ housing and clarifying how tax incentives will be applied. The law considers rental units ‘low-income’ when restricted to tenants earning 80% or less of the area median income (AMI), and the rent is limited to 30% of their income. 8 Law is intended to benefit low-income residents, and this new ordinance ensures that is how it’s applied.

With the city’s help, wealthy developers have abused this tax treatment, applying it to entire buildings with only a few income-restricted units or even commercial spaces in mixed-use buildings. This takes millions of taxpayer dollars intended to benefit low-income residents and hands them to ultrawealthy developers who are not building affordable units. The new ordinance specifies that only low-income units are eligible for the 8% tax treatment and offers stronger reporting requirements to prevent future abuse of the law.

It is disappointing that the mayor would veto a tool that addresses low-income housing in the capital city. We are confident that we have the necessary votes to override the veto at our meeting next week, a testament to the Council’s unwavering dedication to our most vulnerable residents.”

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