The City Council voted this evening to pass a change to the Code of Ordinances, giving authority to the Providence Redevelopment Agency (PRA) to borrow up to $20-Millon to capitalize the  Providence Affordable Housing Trust Fund (Fund). The Council’s Committee on Ordinances, chaired by Majority Leader Jo-Ann Ryan (Ward 5), moved for full council approval of the amendment to the Code of Ordinances at their meeting on Tuesday, September 22, 2020.

“The City Council is making a historic and meaningful commitment to addressing the shortage of affordable housing,” stated Majority Leader Ryan. “The Fund was created by the City Council in 2019, in collaboration with its affordable housing partners, earmarking 10% of all TSA payments to provide the basis for the Fund. The $20 Million is anticipated to make up to 1,500 affordable homes possible in the next three years for Providence residents.  The Fund is intended to provide critically needed gap financing to encourage the production, preservation, and protection of affordable housing. I want to thank Deputy Majority Leader Mary Kay Harris, my fellow committee members, our affordable housing partners, City finance teams, and Council colleagues past and present for their hard work on this important topic.”

“Affordable housing is a basic human right,” stated Deputy Majority Leader Mary Kay Harris (Ward 11). “I have been working on equity in housing for far too long, and this is the first major investment that I have seen made to address the issue in our City. I want to thank my Council colleagues for supporting this measure and their steadfast dedication to ensuring that we do all we can to address this pressing need. During the Fane Tower hearings, many residents spoke up and spoke loudly about the need for affordable housing, and I heard them. As we live through this pandemic, where so many are out of work, and where housing insecurity is coming into full focus, I am beyond proud that this body has acted and can take such a monumental step for our residents.”

The change to the Code of Ordinances approves the Providence Redevelopment Agency (PRA) to seek a bond of up to $20 Million to capitalize the Council’s Affordable Housing Trust Fund. The Fund, created in 2019, is an important City Council initiative that ensures that developers seeking tax relief are also investing in the City through their Tax Stabilization Agreements (TSAs). These agreements provide a structured tax phase-in for large scale development in the City and include specific clauses whereby the developer must invest into the Affordable Housing Trust Fund, the Parks and Recreation Trust Fund, and meet a host of other obligations. Ten percent of the TSA’s total estimated value must be deposited into The Fund, which is managed by the PRA.

City Council President Sabina Matos stated, “TSAs are an integral part of growing our City and our tax base. Yet, it is imperative that developers also invest in the community. When we created the Affordable Housing Trust Fund, we did so to ensure that our investors were putting skin in the game and that we were creating a dedicated funding stream to create much needed affordable housing units in Providence. By moving forward with this ordinance to allow capitalization of The Fund, we will be able to do just that. I want to thank Deputy Majority Leader Mary Kay Harris for her tenacity in shepherding this important legislation through the Council.”

The additional bond funding could allow for nearly 1,500 affordable housing units to be added to the City’s housing stock. The PRA will mandate that all rental units created through this program be rented at 80 percent or less than the area median income (AMI) and no more than 120 percent of the AMI for multi-family homes. This funding is intended to be used as gap dollars to help fulfill the needs of developers and our housing partners, like local Community Development Corporations, to achieve their goal of creating affordable housing units throughout Providence.

Executive Director Jennifer Hawkins of One Neighborhood Builders stated, “Housing stability is the greatest economic challenge our residents face. Now more than ever, we need to ensure families and residents, despite their income, have access to safe, quality housing they can afford. Affordable housing promotes neighborhood stability and enables families and residents to thrive.”

“We are excited to see the City taking such an important step to support the production of much-needed affordable housing in Providence,” said Carol Ventura, Executive Director of RIHousing. “Many funding programs are over-subscribed, leaving developers searching for additional funds to close the gap and move projects forward. This new funding stream will be critical to creating and preserving affordable homes, spurring economic activity and creating jobs.”

This change to the Code of Ordinances will dramatically impact the community and our ability as a City to ensure that affordable housing can be developed and that residents can live and work in Providence without being house burdened.

Councilman James E. Taylor (Ward 8) will introduce an Ordinance that requests the City of Providence and the City Tax Collector to suspend all tax sales for this fiscal year (July 1, 2020 – June 30, 2021) at this evenings City Council meeting. The Ordinance is co-sponsored by President Pro Tempore Michael Correia (Ward 6), Senior Deputy Majority Leader Nicholas J. Narducci Jr. (Ward 4), and Councilor Rachel Miller (Ward 13).

As of yesterday, 8,344 Providence residents have tested positive for the COVID-19 virus. Due to this ongoing global pandemic small businesses are shuttering, unemployment rates are still at high levels, and housing insecurity is becoming a greater risk for residents.

“As a City, we have an obligation to our residents to protect their interests, and with so many residents out of work, they have to make choices between food, mortgage, and taxes. Although we are asking the Tax Collector to suspend tax sales, nothing in this Ordinance shall in any way impact the Collector’s ability to collect interest on unpaid taxes as prescribed by law. Our residents and our neighbors need some relief, and the fear of losing their home to a tax sale is a relief that we as a City can provide,” stated Councilman James E. Taylor.

A property is subject to a “tax sale” when the taxes are seriously delinquent, and the city asks an interested third party to pay the taxes. In exchange for the payment, the city puts a tax lien on the property in favor of the party who paid the taxes. The property owner has a year and a day to pay the third party the back taxes and fees. If they cannot, the third party has the right to take title to the property through the court. The proceeding is called “foreclosing the right of redemption.”

Council President Pro Tempore Michael Correia stated, “Although we know the City is facing serious financial difficulties, we need to put the needs of our residents first. We don’t yet have a budget for this fiscal year and continue to operate on the previous year’s budget. Tax sales do provide some relief to the budget, but it’s very small. The City will be made whole in the following fiscal year, and residents will have the time they need to find the financial assistance they may need to keep their properties.”

The proposed Ordinance being presented tonight would suspend all authority for a tax sale pursuant to the Providence Code of Ordinances. While the Collector may utilize his state-mandated authority to still move forward with a tax sale for the current fiscal year, the passage of this ordinance removes all authority granted to the Collector by the Council to do so.

“Last year only 100 residential properties were part of the fiscal year 2020 tax sale,” stated Senior Deputy Majority Leader Nicholas J. Narducci Jr. “Residents have a year and a day to pay the back taxes and fees to retain ownership, but during these uncertain financial times we need to help where we can. I hope the Collector and the City will agree that we can delay a tax sale by one year to provide homeowners the time they need to pay their back taxes and provide the security that these residents need.”

Councilor Rachel Miller shared, “I have spoken to many residents who have lost their jobs due to the pandemic. The stimulus of $600.00 that was given weekly to unemployed residents has ended, and with the current COVID-19 aid package stuck in the United States Senate, our neighbors are trying to make ends meet. As an elected leader, I feel we have an obligation to support our residents when we can, and I urge the City and the Collector to consider suspending this year’s tax sale to help keep our residents in their homes without the added fear of losing it due to their inability to pay their taxes.”

The Ordinance will be sent to the Council’s Committee on Ordinances for further review and discussion.

At tonight’s City Council meeting, Council President Pro Tempore Michael Correia (Ward 6) will introduce four resolutions regarding neighborhood improvements in his Ward.

“I continue to fight for important neighborhood upgrades in my Ward. Improvements such as traffic safety measures and small beautification updates, all add up to improving the quality of life in the Manton neighborhood,” stated President Pro Tempore Michael Correia.

The first resolution requests that the City Forester replace trees along Atwells Avenue removed during a sidewalk replacement. The requested trees’ site is between Academy Avenue and Mt. Pleasant Avenue and will help beautify the neighborhood. This particular stretch of street is heavily trafficked, and having new trees planted will play an essential role in air pollution mitigation.

The second resolution requests that the Department of Public Property install a gate at the District 6 Police Substation parking lot entrance.

The third resolution requests the installation of a crosswalk at the Manton Skate Park entrance by the Department of Public Works and the City Traffic Engineer. Pro Tempore Correia recently held a ribbon-cutting ceremony at the newly renovated Manton Skate Park, located at 588 Manton Avenue, and believes that this crosswalk will help keep pedestrians and cyclist safe as they visit the park and the Greenway.

The final resolution, a traffic calming request, calls on the Department of Public Works and the City Traffic Engineer to install additional safety signage along Manton Avenue. Specifically, the resolution requests a “SLOW CURVE” notification along the 800 block of Manton Avenue.

“I look forward to seeing these community improvements completed, and I extend my gratitude to the men and women of the DPW, Public Property, and the Parks Department who collaborate to make our City clean, safe and livable,” added President Pro Tempore Michael Correia.

At tomorrow’s City Council Meeting, Council President Sabina Matos (Ward 15) will propose a resolution requesting that Mayor Jorge Elorza and the Providence Board of Licenses create a payment plan option for restaurants and bars looking to renew their liquor licenses for 2021. The resolution is co-sponsored by President Pro Tempore Michael Correia (Ward 6), Senior Deputy Majority Leader Nicholas J. Narducci Jr. (Ward 4), and Councilors Helen Anthony (Ward 2), Rachel Miller (Ward 13), James Taylor (Ward 8), Pedro Espinal (Ward 10), and John Goncalves (Ward 1).

On the first of December each year, any restaurant or bar in the City of Providence with an existing liquor license must apply for a license renewal. This process can cost up to $3,000.00 and is overseen by the Board of Licenses. As the COVID-19 pandemic continues to upset the economy, this large fee could significantly strain many struggling restaurants and bar owners.

“Providence is home to some of the best restaurants in the region. We have seen several restaurants that have had to close their businesses due to the ongoing pandemic. The trickle-down effect of those closures means residents have lost jobs, owners have lost their livelihoods, and in many cases, their dreams. Further, when a business closes, it creates losses in tax revenue for the City. We need to do what we can to support them. Our city is a destination because of our unique and diverse culinary and bar scene. As City leaders, we need to do whatever we can to ease the financial burdens that they are currently facing. I want to thank Brendan McCaughey, who brought this to our attention, and worked with Council Staff to better understand the needs of our license holders,” stated Council President Matos.

“The City of Providence must follow in the footsteps of our neighbors in Warwick and Pawtucket,” stated Council President Pro Tempore Michael Correia. “A liquor license is an integral part of any restaurant or bar operation. As business owners struggle to comply with new guidelines and grapple with financial loss, we must provide avenues for them to remain operational and on sound footing. A phased payment plan will surely help.”

In response to similar challenges, the Cities of Warwick and Pawtucket have already enacted similar plans, allowing license holders to adopt payment plans rather than paying all at once. While the cost will remain the same, this payment plan method aims to make the renewal fee easier to bear.

“It is critical that we take immediate action to support struggling restaurant and bar owners and do what we can to help them remain operational and fluid. This pandemic has affected every aspect of our lives, and our small business community – including restaurants and bars – have been hit hard. The livelihood of many depend on this relief,” stated Councilor Rachel Miller.

Brendan McCaughey, the owner of Nolan’s Pub, stated, “I would like to thank the City Council, in particular, Councilwomen Matos and Miller, for their swift attention to this matter. As the weather turns cold and outdoor seating becomes impractical, many bar and restaurant owners are concerned about how to financially survive the winter. I think I speak for all of my fellow license holders when I say that any payment relief from the City’s license renewal fees will be a tremendous help at a time when some of us desperately need it.”

Upon passage, copies of this resolution will be sent to Mayor Jorge Elorza and the Providence Board of Licenses.

PROVIDENCE, RI (September 17, 2020)…Providence City Council President Sabina Matos (Ward 15), along with a majority of her Council Colleagues including President Pro Tem Michael Correia (Ward 6), Majority Leader Jo-Ann Ryan (Ward 5), Senior Deputy Majority Leader Nicholas J. Narducci Jr. (Ward 4), Deputy Majority Leader Mary Kay Harris (Ward 12), and Councilors Carmen Castillo (Ward 9), Councilman David Salvatore (Ward 14), Nirva LaFortune (Ward 3), Helen Anthony (Ward 2), Katherine Kerwin (Ward 12), Rachel Miller (Ward 13), James E. Taylor (Ward 8), Councilman Pedro Espinal (Ward 10) and John Goncalves (Ward 1) tonight introduced an ordinance entitled the Providence Tax Stabilization Investment Act.

The Providence Tax Stabilization Investment Act (The Act) would standardize the processes for all future Tax Stabilization Agreements (TSAs) in the City of Providence by increasing transparency, simplifying and streamlining the application process, and clearly defining the requirements that all developers must abide by should they wish to obtain a stabilization agreement with the City. The proposed legislation will create a tax stabilization system that not only protects our City’s financial interests but also incentivizes new development.

Council President Sabina Matos stated, “Over the past several years, my colleagues and I have grown increasingly frustrated with the existing TSA process as it has resulted in confusion for developers and Providence residents alike. This legislation sets clear expectations to developers from the get go and codifies them all in one section under our Code of Ordinances. By providing clear expectations and terms from the onset of an application for a tax stabilization agreement, the Council can better monitor and enforce the terms of the agreement that are meant to empower the communities that work and live in Providence. Furthermore, by streamlining this process developers will find it easier to move here, create more good-paying jobs, and grow our tax base.”

The Act is intended to balance economic development with responsible employment practices in order to increase the city’s tax base while revitalizing our existing communities. In order to advance this mission, it is vital that the city provide developers, entrepreneurs, and investors with a predictable TSA process which clearly defines both the procedure to obtain a TSA as well as the requirements that will be imposed should a property be granted such an agreement.

“I am very proud of the work we have done to create a crystal clear and reliable process that incentivizes development and defines community benefits,” stated City Councilor Rachel Miller. “When Providence forgoes tax dollars to support development, we should be able to trace the positive impact of that investment in our communities and to city residents. At the same time, developers should be able to rely on a predictable process. The Act is a tremendous step in both directions.  The ordinance is the result of an intensive collaborative process between the Council, Council staff, the Solicitor’s Office, and the City’s Planning Department, and I look forward to a rigorous discussion of its merits with my colleagues and with city residents.”

About the Providence Tax Stabilization Investment Act:

The Act will tie the length of TSAs to the amount of investment being made in the City of Providence, and it will standardize the process by which TSAs are reviewed and approved. This includes citywide departmental review before reaching the Council, as well as a clearly defined list of documentation that a developer must provide at the outset of the application.

In addition to procedural changes, the proposed legislation condenses a number of existing requirements on TSAs into one section of the Providence Code of Ordinances to eliminate confusion. These requirements include the criteria all developers will be held to if they want a TSA, such as hiring Minority and Women Business Enterprises, paying prevailing wage during construction, and defining specific reporting timelines to ensure compliance. There are also specific designations for the taxes generated from stabilized properties, which includes 1% of all taxes for First Source, 10% for the Affordable Housing Trust Fund, and 7% for the Parks and Recreation Trust Fund. While these designations have been designated by ordinance in the past, the new legislation places them directly in the section of the Ordinances governing TSAs in order to eliminate any uncertainty regarding where TSA taxes must go.

Finally, the Act establishes a very specific notice and cure provision in order to increase the enforcement capabilities of the Council so that they can exercise greater control over compliance with all of the terms and conditions of each TSA.

The ordinance can be found here: Providence Tax Stabilization Investment Act

At the September 3 City Council Meeting, Councilman John Goncalves (Ward 1) introduced several resolutions with City Council colleagues regarding the start of the new school year, school improvements and COVID-19 preparedness within Providence schools.

“As we approach the 2020-2021 school year, it is crucial that we take all considerations to build a safe and productive school year. I commend and applaud the hard work of the Department of Education, Commissioner Infante-Green, Superintendent Peters and the Department of Health, and offer these resolutions as simply suggestions to further ensure these goals are met,” stated Councilman Goncalves.

The first resolution encourages Providence residents to vote “Yes” on the November ballot referendum to approve a $40 million bond for school improvements in Providence. These improvements would include construction, renovation, landscaping, furnishing and equipping Providence schools and school facilities throughout the City.

This resolution is co-sponsored by Council President Matos (Ward 15), Council President Pro Tempore Correia (Ward 6), Councilwoman Anthony (Ward 2), Councilwoman Castillo (Ward 9), Councilman Espinal (Ward 10), Finance Chairman Igliozzi (Ward 7), Councilwoman Kerwin (Ward 12), Councilor Miller (Ward 13), Councilor Salvatore (Ward 14) and Councilman Narducci (Ward 4).

Council President Matos stated, “While we should prioritize the warmth, safety, and security of our learning spaces for our youth, we should also invest into projects that inspire learning and instill a sense of pride in students about the spaces they spend most of their days in. Voting yes on this ballot referendum would help provide us the flexibility we need to work towards transforming our schools both academically and structurally into investments we can be proud of.”

As plans are made to begin the new school year, the possibility remains that students will be returning to in person learning for at least some of the school year. This means that the physical state of Providence school buildings remain a timely and important concern.

The second resolution proposed by Councilman Goncalves requests that the Rhode Island Department of Education (RIDE) ensure that every Providence Public School has a trained nurse available on site during the day.

“As in-person learning resumes, at a time when public health is so important, it is imperative that a trained nurse or substitute nurse in every building be made available to all Providence students. This will further protect the health of Providence children, their families and surrounding communities,” added Councilman Goncalves.

The next resolution suggests that the RIDE and Providence Public Schools provide a remote learning best practices workshop for parents, through whichever means they see fit. This resolution has been co-sponsored by Council President Matos, Council President Pro Tempore Corriea, Councilor Anthony, Councilor Castillo, Councilor Miller, Councilor Narducci, Councilor Kerwin and Councilor Salvatore.

“So many parents have suddenly had to become teachers as they help their children navigate distance learning. Feedback has indicated that many parents would like to learn more about what they can do at home to provide the best possible learning environment for their children,” continued Councilman Goncalves.

“With the possibility that schools may be relying on distance learning for part of the school year, this type of training would help to mitigate absenteeism and provide parents with some assurance as families adjust to this change,” stated Councilor Anthony.

The final resolution recommends that RIDE utilize disaggregate data in their school operations decision making. While the current guidelines call for broad municipal data in which any city or town with more than 100 positive cases per 100,000 residents cannot move to a full in-person reopening, disaggregate data captures community spread of COVID-19 more closely by pinpointing data within certain subsets of the populations such as race, ethnicity and zip code.

“We have all learned that data and science is crucial when it comes to combating COVID-19. I have 100% confidence in our Governor, Department of Health and Department of Education and the five metric methodology for a safe reopening in person, and this is simply a recommendation to look at our municipal readiness in a more granular way. Since COVID zip code data is readily available, looking at zip codes, race and ethnicity to guide school operation decisions could ensure a safe and equitable return to school, specifically among communities of color and zip codes that have been disproportionately impacted,” stated Councilman Goncalves.

“Communities of color and lower income communities have been disproportionately affected by COVID-19 within the City of Providence. This disaggregate data would provide a deeper understanding of the risks involved with returning to school within these specific communities and zip codes’ ‘ stated Finance Chariman Igliozzi.

Council President Matos added, “It’s extremely important that we as the City Council continue to advocate for reform and transformation in our schools: whether it be for better family engagement or basic personnel such as a school nurse. I’m proud to have partnered with Councilman Goncalves and my Council Colleagues in bringing forth these resolutions to keep our kids and families safe.”

Upon passage, these resolutions will be transmitted to the Honorable Governor of the State of Rhode Island, the Mayor of Providence, the Superintendent of the Providence Public School District, and the Commissioner of Elementary and Secondary Education for the State of Rhode Island.