Providence, RI – At tonight’s City Council meeting, councilors passed several major ordinances before recessing for the summer. The next regular City Council meeting will convene on September 17, 2026.
The first ordinance, the Providence 8 Law Qualifications, governs how Providence grants the 8% tax treatment within the city. The 8 Law ordinance will stop the misuse of the low-income tax treatment by wealthy developers who do not substantively build the affordable housing that the state’s 8 Law was meant for. The state’s 8 Law designates the tax treatment for low-income housing, but does not give a definition of low-income, nor specify affordability levels, nor address whether it should be applied to the units themselves or the entirety of the building. This ambiguity creates space for municipalities to administer the program as they deem appropriate and beneficial.
In April 2024, the City Council passed by a 13-2 vote an 8 Law ordinance that would have applied the low-income tax treatment only to the restricted units themselves. The ordinance was then vetoed by Mayor Brett Smiley. Rather than just applying to individual units, the new version passed for the second and final time tonight sets affordability thresholds that work with other low-income housing programs. After taking into consideration feedback from affordable housing developers, the sponsors created an ordinance that will fulfill the intended purpose of the state 8 Law while aligning eligibility with the federal Low-Income Housing Tax Credit and other affordability programs, together ensuring that the tax treatment is only used for properties with meaningful low-income housing.
“After years of work, tonight we put into law that a tax treatment intended for low-income housing must actually be used for low-income housing,” said Council President Rachel Miller (Ward 13). “Wealthy developers have been taking advantage of the City’s most generous tax treatment without providing units affordable to low-income residents. Take 68 Dorrance, for example: a 44-unit market-rate building where only 9 units are income-restricted, and none are restricted for low-income households. Tonight, the Council said clearly: that is not what 8 Law is for. This ordinance protects affordable housing and city revenue by making sure luxury developers pay their fair share.”
Passage of this ordinance is considered to be a major legislative success for the majority of the City Council that has worked on 8 Law reform for the entirety of this term. Besides legislating to end the abuse of the low-income tax treatment, the City Council has pursued a judicial route to properly applying 8 Law. The Council currently has a case before the Rhode Island Supreme Court regarding Buff Chase’s firm Cornish Associates, who have a deal to receive the low-income tax treatment on10 buildings, including commercial portions, without meaningful affordability restrictions.
Councilors also passed for a second and final time an ordinance modernizing procurement procedures for the Providence Public School District (PPSD).
The ordinance, introduced by Councilor Jill S. Davidson (Ward 2), will establish a tiered procurement framework for PPSD following the district’s return to local control. Currently, purchases above $10,000 for supplies and $20,000 for construction are required to go before the Board of Contract and Supply (BOCS). Under the new system, routine purchases, which constitute the majority of procurement activity, would be handled by the schools themselves, and only multi-year, sole-source, or $500K+ contracts would be subject to City review.
“Sometimes multiple levels of review are essential to ensure good governance and financial oversight, but for most routine purchases it just isn’t a good use of taxpayer dollars or city time to have so many levels of red tape,” said Councilor Davidson. “The City is committed to setting our schools up for success this fall, and making sure they get the supplies they need in a timely fashion is a great start.”
The ordinance came via agreement between Councilor Davidson, Mayor Smiley, and School Board President Ty’Relle Stephens, announced in June.
Councilors also passed for the second and final time the BUILD Act, which will eliminate taxation during the construction period of qualifying affordable housing development, in a move that sponsors say will reduce a barrier to increasing the supply of affordable housing in Providence.
Currently, 8 Law only goes into effect upon the occupancy of rental units since the tax treatment is determined by rental income. In between the start of construction and occupancy, properties are taxed at the regular rate.
The BUILD Act will change that by providing a two-year tax stabilization period for eligible affordable development projects before tenants move in and are taxed at 8% of scheduled rental income. By removing the tax burden from the start, the BUILD Act will clear a difficult barrier to the construction of more affordable housing, especially the deeply affordable housing needed by the lowest income households.
Finally, councilors granted second and final passage to an ordinance on deed protections. The ordinance creates a de facto fraud alert system that will notify enrolled property owners whenever a document affecting their deed or title is submitted for recording.
“Protecting Providence homeowners from the devastating impact of home deed fraud has been a personal mission of mine since my time in the State Senate,” said City Council President Pro Tempore and lead ordinance sponsor Juan M. Pichardo (Ward 9). “This ordinance establishes a crucial line of defense, ensuring homeowners are no longer left in the dark about unauthorized changes to their property records that could impact their most important lifetime asset. We are delivering peace of mind and proactive security directly to our neighborhoods.”
In June 2026, Governor Dan McKee signed House Bill 7551aa and Senate Bill 2715A into law, establishing real estate title fraud as a criminal offence and allowing municipalities to refuse to record suspicious documents from unauthorized submitters. Providence’s ordinance will become effective a year ahead of the state law.
The ordinances will now be transmitted to Mayor Smiley for his signature.
