Tenants demand rent stabilization at city council meeting

PROVIDENCE, R.I. - Residents, tenants and landlords alike, flooded Providence City Hall’s third floor chamber to testify on Wednesday evening, clashing over a proposed ordinance that would cap rents at 4% on annual rent increases. The ordinance, if approved, would take effect immediately upon passing. Property owners lamented economic implications like rising property taxes and lower property values. Tenants said they were overwhelmed by unstable living conditions and unaffordable rent. 

Originally proposed at a meeting on Jan. 22 by Council President Rachel Miller, the ordinance would affect buildings of three or more units. It would also cover those owned by “corporations or entities that own many properties,” according to a rent stabilization frequently asked questions post on the city council’s website. In a fiscal note regarding the potential impact of the ordinance, public finance consultant Tom Sgouros estimates this to be about 48,000 units. If this ordinance is passed, Sgouros predicted that renters would save a total of $11 million per year.

Both sides conceded that the ordinance is not a permanent fix to the housing crisis, calling it a Band-Aid rather than a long-term solution. They disagreed on whether it was worth passing. Many property owners demanded the city council find a different approach, while tenants insisted that they couldn’t afford to wait. 

Landlords warned that the city would lose revenue and deter companies from building new housing in Providence. Many in opposition, including Providence Chief Financial Officer Lawrence Mancini, cited St. Paul, Minnesota’s rent stabilization ordinance from 2021 as a cautionary tale: 

“Strict rent control, like is proposed here, led to an over 80% drop in new housing permits while rents still increased,” Mancini said.

Owners of smaller properties, like Janice Hannert, said they were worried that they would be forced to raise their rents every year, rather than between tenants. 

“Some of my tenants, they've been there 24 years,” Hannert said. “These people might have to move if I raise my rents.” 

Tenants said they had more immediate concerns. Sophia Gomes of community group Sista Fire described members’ reports of mold, flooding, pest infestations, and unreliable heat in winter. Others spoke of rising costs, pricing them out of their homes every year and, in some cases, losing housing completely.

“Our members are not asking for new homes,” said Gomes. “They're asking for stability in the ones they have.”

Molly Richard, an  associate professor at the Department of Public Health at the University of Rhode Island, also testified in favor of the ordinance. She classified it as an “emergency brake” to give residents stability. Families don’t know how much their rent will rise from year to year, she said after the meeting. This instability can lead directly to homelessness: if a tenant spends 80% of their income on rent, they cannot afford anything else, let alone a surprise increase, she said.

“We're bailing out the water from a boat that is still filling,” said Richard. “And we really need to move upstream.”

EDITOR’S NOTE: Brewer reached out to Sista Fire, the Rhode Island Coalition of Housing Providers, and Rep. David Morales, but they did not immediately respond.