I pledge allegiance to the flag Moment and time that took place in Pawtucket and for the family. Thank you. I would also, at this time, remind everyone that, as you came in, you saw a sign there that, had some of the practices to keep this conversation and this hearing respectful and addressing it to the chair, not making it personal. I also like to remind everyone that this hearing is being streamed in YouTube. So you're able to see it on your phone and play it back.
But also I also thank those who are here such as the frequent media that's always in these venues. Thank you for being here. Also, the emergency exits, as you know, they're to your left and to your right and to the rear. As you go down the stairs, the same way if you notice on the first floor, exits on the rear and both sides. As you also may know, on the 2nd Floor, the restrooms are being rehabbed.
So if you need to use the restroom, the downstairs in the 1st Floor. I ask everyone to respect, the chambers, respect, the message, speak to the issue, And I also encourage organizations that feel that they're delivering almost the same message. If they have a lot of members, that's up to you. That if you would like to step forward and speak on behalf of that organization and just bring your members and say we are 10 or 15 strong here, you have that option. But we are committed to be in this chambers as long as possible so that way we can listen to your feedback, to your recommendations, whether the pros or cons.
I also would like at this time also to recognize my colleagues, the vice chairwoman, Shelly Peterson. To my right, councilman Miguel Sanchez, councilwoman Sue Andewa, and Justin councilman Justin Royas. In addition to, our colleagues, from my left to the right, we have councilman John Gankovs, councilwoman Jill Davison, majority leader Pedro Espinal, councilwoman Mary Kay Harris, and our councilwoman and president Rachel Miller. So with that said, I welcome all of you and also I'll say this in English and Spanish, if you have a language barrier or need some translation or you want to help someone, there's a QR code outside that if you go use your smartphone, it would take you to an application with your EPs that you also could have any, this hearing translated in any language. So So with that said, we're here to listen to everyone and making sure that we hear the pros and cons and any other suggestions that you may have.
Thank you very much. And madam excuse me. And since I have your full attention, I'll make the announcement again. Honda Pilot, color green, license plate VS513 is parked in the famous spot for New Haven, the Haven Brothers food restaurant. And as a reminder, you get hungry, you can also go out there and and get some burgers afterwards.
So Honda Pilot Green VS513, you need to move your car. They're about to tow it. Sorry to deliver that bad news, but we're trying to make sure that you don't. Please. With that said, madam clerk, if you could please read item one.
Item one, an ordinance amending chapter 13 housing of the code
of ordinance of City Of Providence to add the next appropriate article, the the Providence Rent Stabilization Act.
Thank you. Thank you, madam clerk. With the sergeant at arms, can you please bring the sign in sheet that you have before us? Thank you. Madam Clerk, could you, enter the letters of testimony into the record?
Thank you. Just to remind everyone, this is a hearing. We're gonna be listening to the testimony. This hearing, there is no vote needed or and even to adjourn. So with that said, I would like to first call Larry Mancini, Chief Financial Officer.
Actually, give me one second. Yes. The first person I'd like to call is Larry Mancini, Chief Financial Officer for the City of Providence. Test. Thank you, mister Mancini.
And just to you know, you've been here for many years. Everyone is going to receive a a three minute, and obviously, mister Mancini, being the chief financial officer, has an exception on that. At least five minutes. Right? Or so?
to stay within the rules, mister chairman.
Thank you very much. I I appreciate it. And if you could also speak directly into the mic Yep. So that way, the people in the rear can listen and hear what testimony is being provided. Thank you, mister Nazzini.
Thank you, mister chairman.
Again, good evening, chairman, honorable members of the committee, the city council. My name is Lawrence j Mancini. I'm the chief financial officer for the city of Providence. This evening, I'm here specifically to provide testimony on the unknown potential financial implications this policy could have on the city. On January 26, the administration formally requested a fiscal note on the impact this proposal will have on our budget.
Only today, the finance department was provided with such a note which estimates that the cost of this program administration at more than a $500,000 next year alone. There hasn't been enough time for this to be fully view to review this note, so I can't provide any assurances that this includes the full cost. Without that necessary information prior to today, the finance team conducted a limited analysis of the potential impact to the city of province's tax revenue and hence the budget based upon information gleaned from a similar study from the city of Portland, Maine based on rent control provisions. The finance department reviewed the number of residential dwelling properties that could be subject to the rent control provision and arrived at approximately 44% of those dwellings. Using those affected properties and its combined assessed value of 4,300,000,000 and when applied against the respective tax rates, the cumulative projected tax loss using the Portland model would result in a projected property tax loss of between 1,900,000 and 3,250,000 of tax revenue.
Applying the same impacts observed in the Portland, Maine and Saint Paul, Minnesota studies, the tax revenue loss in province could approach actually 10,300,000 to a range of 17,500,000. This exercise does not take into account the potential decrease in property valuation we have seen because of these policies in similar cities which would further decrease revenue. As an example, Saint Paul, Minnesota saw an average property value fall by 4.4% when the implementation of rent control policies was completed. Clearly, any lost revenue would have to be made up by shifting the tax burden to single family homeowners, which result in tax raises for neighbors across the city. Hence, even an average tax revenue loss or shift of 4.3% could result in significantly higher tax bills for the median valued single family home.
These are families, elderly neighbors, and community members who cannot bear the burden alone and afford an increase in their tax bill or decrease on the property value. I hope that the city council will consider the financial, economic, and policy impacts of this legislation and invite the experts in the administration who were not consulted during the drafting of this proposal to the committee for a more transparent discussion prior to any vote being elected. Thank you for your time and consideration. I appreciate the opportunity to appear before you. Thank
you. Thank you, mister Mansino. The next person I I would like to call is Emily Friedman, director of housing and human services.
Good evening, honorable members of the committee. I'm Emily Friedman, director of housing and human services. The city's department of housing and human services shares the deep concerns of so many neighbors here in Providence who are struggling with unaffordable rents and a real housing shortage. The pressure on families across our city is undeniable. But while the urgency is real, we must also be thoughtful about the solutions we choose.
The department is immersed all day, every day in the work of increasing the city's supply of affordable housing and designing programs that protect, preserve, and produce housing for our residents. We see firsthand the scale of the challenge and the importance of solutions that expand opportunity rather than restrict it. Some on the council have proposed rent stabilization. The department understands why it sounds appealing, but to be clear, rent stabilization does not freeze rents or lower them. It simply regulates the pace of future increases.
Further evidence and direct conversations with day to day administrators in peer cities urge extreme caution when considering such a policy. In Saint Paul, Minnesota, strict rent control adopted in 2021, like is proposed here, led to an over 80% drop in new housing permits while rents still increased. Colleagues there have shared how difficult it has been to unwind the unintended consequences. In contrast, nearby Minneapolis experienced a building boom and declining rents after pursuing zoning reforms to increase supply. This is one of the clearest real world case studies we have available.
In Portland, Maine, leaders have had to muddle through administrative complex complexity, unclear roles, and a multi year backlog of exemption applications and appeals. Research also shows that rent control policies often disproportionately benefit higher income white households who are more likely to secure and remain in controlled units, not the lower income residents most vulnerable to displacement. If our shared goal is to protect those residents, targeted means tested programs such as rental assistance, expanded eviction defense, and housing stabilization supports are far more effective tools in our pro housing toolbox, and I hope the council will support thoughtful proposals like those when the administration submits its f y twenty seven budget this spring. Vacancy control provisions like the one proposed here, which most cities have ultimately dropped or are seeking to unwind, can also backfire. When annual increases are capped at 4%, landlords are incentivized to take that full increase every year to keep pace with rising costs.
That structure institutionalizes rent increases rather than moderates them. Additionally, the ninety nine year deed restriction requirement would mean nearly all of our existing affordable housing developments would not qualify for exemption. Combined with a new construction exemption period that is misaligned with standard mortgage terms, this creates underwriting uncertainty that could slow desperately needed production housing production now. I urge you to review the expert testimony submitted to you by Rhode Island Housing and other housing finance experts. Here in Providence, the city cannot afford policies that risk reducing investment or delaying new homes, and I urge you not to unintentionally undermine the good work we've been doing together to address this housing crisis.
Together, we must focus on proven strategies that grow housing supply and protect affordability. Thank you.
Thank you. Would you like your both testimony? Do you wanna turn it in for us or send us those email or if you've probably sent it already? Thank you very much. Appreciate it.
The next person we have here, Gregory j Rice, the position against. You have three minutes, and there's someone here with to the right will give you notification how long you have left, and then you must end. Thank you.
Thank you. When I began testifying at the State House years ago, rent control was a boutique radical idea that was scoffed at by mostly everyone. The Overton window has since shifted to where we are today. It has become reasonable and acceptable to propose, support, and endorse rent control and or rent stabilization. When I testified, I would spend time researching and studying the issue diligently.
I would bring forth data, information, case studies, quotes from experts, facts about my experience, comparative city analyses, and beyond. My colleagues who are here in solidarity tonight would do the same. Year after year, however, after doing the same thing and seeing no results, actually seeing worse results, I have come to the realization that rent control has surpassed its original intention and now instead has become a religion. And as we all know, facts and information are the enemy of religion. What I've also noticed is that the Providence City Council official Facebook page has shifted from a neutral, unbiased informational hub to a mechanized propaganda arm of the progressive wing of the Democrat Party.
The official Facebook page is a government funded resource that has been weaponized to promote an institutional consensus and belief to the untrained public eye that they have reached their determination on this matter. This is arguably one of the most controversial policy issues the city has seen, and the overwhelming majority of the content promoted is one-sided. That is as un American as it gets. That's what they do in North Korea. Thank you.
Next person is Reined Thomas. The position four. If you could restate your name and your address.
Where do you live? Or at least live
My name is Rayna Thomas, and I live in Ward
Thank you. Hello. My name is Reyna Thomas, and I'm a member of Sister Fire, here to speak in support of the rent stability bill. Mostly because this is a moment of urgency, and I have not heard an alternative plan to address the rising cost of rent in the city of Providence. And while I cannot speak on behalf of everyone, I know that limiting a landlord's ability to raise the rent by 4% would, if nothing else, give me time to find alternative housing options.
From reading the bill, I understand that this is not about rent control, but about rent stability. Rent control means that I move into your apartment at a price, and it stays that price as long as I live there. Rent stability says you cannot increase my rent by a certain percentage each year. So you can increase the amount of rent each each year. Secondly, one of the things that I'm also understanding is that my landlord would not have to raise the rent to 4%.
That is also another misfact that is being spread, but they cannot exceed that 4% without justification. As a tenant who is subject to background checks, credit reports, criminal background searches, and references, I would love some transparency in why my rent is increased by more than 4%. Especially, excuse me, especially since I have been priced out of two homes in the past six years. My rent has not increased below 4%. My rent has increased by 11% in the past six years.
11% in Ward 1 and in Ward 3. I am a high school history teacher. I make less than $3,000 a month, and I cannot afford rent. I am teaching your children. I am teaching your nieces and nephews, your neighbors, and I cannot afford to pay rent.
I can't afford to teach. This impacts your kids just as much as it impacts your tenants. There is a teacher shortage in Providence right now because teachers are walking away and transitioning into other industries because we cannot pay rent. So this isn't just about money. This is also about your children.
And if we're being honest, even you who are small landlords, you are being impacted by this as well. Right? If we're thinking about it, you actually should be outlining with your tenants. Right? Because the big corporations, the reason why you're seeing such high cost in maintenance, why you're seeing such high cost in your taxes is because they are buying up all of the land, and they're increasing your taxes.
They are increasing your taxes. Okay? And so I recommend that you highly support this bill because this is urgent. Thank you.
Thank you very much. I I would also remind everyone that as you clap, the time keeps going. So you're shortening the three minutes for the speaker, please. So I know that we're passionate and we wanna be supportive, but we wanna make sure that we hear the testimony and that people can have the time that they've dedicated to come out here and have the time to testify because we have about three pages and more coming. Thank you very much.
The next person is Donald Martin. Against. Welcome. What's that?
We don't want you to shut