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Rent control won’t solve Providence’s steep rental prices – The Boston Globe

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Rent control won’t solve Providence’s steep rental prices – The Boston Globe


Part of the story is the pandemic-era shift toward smaller cities. But the larger truth is Providence has not built enough housing to keep up with demand. In 2024, Rhode Island ranked 50th in the nation for new housing permits – dead last. That isn’t ideology; it is economics.

As housing experts have said, including HousingWorksRI Executive Director Brenda Clement, we have a basic supply-and-demand problem. Expanding housing supply for everyone should be the focus.

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To its credit, Providence has begun to move. Recent efforts by Mayor Brett Smiley, the City Council, nonprofit partners, and private developers have created hundreds of new units. More are in the pipeline. That progress must continue.

As rents rise, pressure for immediate relief has grown. The City Council’s proposed solution is rent control: a cap on annual rent increases at 4 percent. In practice, it fails to solve the underlying problem, and creates new ones.

First, rent control does not make today’s rent affordable, it only limits future increases by creating a cap. Many landlords will raise rents to the cap each year. A $2,000 apartment under a 4 percent cap becomes $2,433 after five years – an increase that renters still feel acutely. That is basic compounding, not a worst-case scenario.

Second, rent control would create a hole in Providence’s budget, as it reduces the taxable value of properties. The Smiley administration examined rent-controlled cities and applied the outcomes to Providence’s tax base. The projected annual revenue loss ranges from $10.3 million to $17.5 million.

When rental property values decline, cities are left with two choices: raise taxes or cut services. Education funding, park improvements, library funding, and basic infrastructure all come under pressure. Experience elsewhere shows this burden does not fall on landlords; it shifts to single-family homeowners. Portland, Maine, saw a 5.4 percent reduction in its tax base after rent control, forcing these tradeoffs. The implementation of rent control will affect all Providence residents, whether they rent or own.

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Third, rent control discourages new housing production, the opposite of what Providence needs. Developers are less likely to build in cities where future revenue is capped, financing is harder, and long-term costs are unpredictable. St. Paul, Minnesota, offers a cautionary tale. After voters approved a strict rent cap in 2021, new unit creation dropped by more than 84 percent in the first quarter, forcing city leaders to exempt new construction, which is exempt in the Providence City Council rent control proposal.

When we build more housing at all price points, market pressure eases, as supply catches up with demand.

That does not mean ignoring the pain people feel today. I grew up here, attended our public schools, and bought a modest single-family home in the neighborhood where I was raised. I feel today’s housing pressures firsthand and hear them daily from family and neighbors. After 12 years on the council, including a leadership role in 2011 when Providence was on the brink of bankruptcy, I know our elected officials genuinely want workable solutions.

That is why, as executive director of The Providence Foundation, an organization of 140 private business and nonprofit members from myriad industries, I recommended we commission a study by the Rhode Island Public Expenditure Council to educate the public on this issue and identify solutions. The report revealed the most effective approach to housing shortages and high costs pairs aggressive housing production with targeted rental assistance for households most at risk of displacement.

Cities across the country have shown what works: modernized zoning, faster permitting, conversion of underused commercial space, and temporary rental assistance to help families stay housed while new supply comes online. These strategies outperform rent control. Overcoming the housing challenge will require all levels of government to play a role.

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Reasoned policy will meet Providence’s housing needs and strengthen our economy for a brighter tomorrow.

David Salvatore is the executive director of The Providence Foundation, a nonprofit organization committed to supporting visionary projects downtown, and a former Providence City Council president and member.





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Truckers ordered to pay own legal bills from failed RI toll lawsuit

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Truckers ordered to pay own legal bills from failed RI toll lawsuit


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The trucking industry will have to pay its own legal bills for the unsuccessful eight-year-old lawsuit it brought to stop Rhode Island’s truck toll system, a federal judge ruled Friday, March 27.

The American Trucking Associations was seeking $21 million in attorneys fees and other costs from the state, but a decision from U.S. District Judge John McConnell Jr. says the truckers lost the case and will have to pick up the tab.

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The state had previously filed a counterclaim for reimbursement of $9 million in legal bills, but an earlier recommendation from U.S. Magistrate Judge Patricia Sullivan had already thrown cold water on that possibility.

McConnell ordered American Trucking Associations to pay Rhode Island $199,281, a tiny fraction of the amount the state spent defending the network of tolls on tractor trailers.

Settling the lawyer tab may finally bring an end to a court fight that bounced back and forth through the federal judiciary since the toll system launched and the truckers brought suit in 2018.

As it stands, the state’s truck toll network has been mothballed since 2022 when a since-overturned judge’s ruling temporarily ruled it unconstitutional.

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The Rhode Island Department of Transportation said it hopes to relaunch the tolls around March 2027.

The court costs fight hinged on which side could claim legal “prevailing party” status as the winner of the lawsuit.

The trucking industry claimed that it had won because the First Circuit Court of Appeals ruled an in-state trucker discount mechanism, known as caps, in the original truck toll system was unconstitutional.

But Rhode Island argued that it is the winner because the appeals court had ruled that the larger system and broad concept of truck tolls is constitutional and can relaunch with the discounts stripped out.

“The Court determines that ATA has vastly overstated the benefit, if any, that they have received from the ultimate resolution of their challenge to the RhodeWorks program,” McConnell wrote.

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The truckers “failed to obtain any practical benefit from the First Circuit’s severance of the [in-state toll] caps,” he went on. “Specifically, the evidence from this dispute confirmed that the lack of daily caps will result in ATA paying a higher amount in daily tolls and that it does not receive any tangible financial benefit from their elimination.”

In her December analysis of the legal fees question, Sullivan had concluded that the Trucking Associations’ outside counsel had overbilled and overstaffed the case.

But she had recommended that the industry be reimbursed $2.7 million for its bills, while McConnell’s ruling gives it nothing.



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Think you’re middle class in Rhode Island? Here’s the income range

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Think you’re middle class in Rhode Island? Here’s the income range


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Your household can earn more than $160,000 a year and still be considered part of the “middle class” in Rhode Island, according to a recent study by SmartAsset.

Rhode Island is the state with the 17th-highest income range for households to be considered middle class, based on SmartAsset’s analysis using 2024 income data from the U.S. Census Bureau. The Pew Research Center defines the middle class as households earning roughly two-thirds to twice the national median household income.

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According to a 2022 Gallup survey, about half of U.S. adults consider themselves middle class, with 38% identifying as “middle class” and 14% as “upper-middle class.” Higher-income Americans and college graduates were most likely to identify with the “middle class” or “upper-middle class,” while lower-income Americans and those without a college education generally identified as “working class” or “lower class.”

Here’s how much money your household would need to bring in annually to be considered middle class in Rhode Island.

How much money would you need to make to be considered middle class in RI?

In Rhode Island, households would need to earn between $55,669 and $167,008 annually to be considered middle class, according to SmartAsset. The Ocean State has the 17th-highest income range in the country for middle-class households.

The state’s median household income is $83,504.

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How do other New England states compare?

Rhode Island has the fourth-highest income range for middle-class households in New England. Here’s what households would have to earn in neighboring states:

  1. Massachusetts (#1 nationally) – $69,885 to $209,656 annually; median household income of $104,828
  2. New Hampshire (#6 nationally) – $66,521 to $199,564 annually; median household income of $99,782
  3. Connecticut (#10 nationally) – $64,033 to $192,098 annually; median household income of $96,049
  4. Rhode Island (#17 nationally) – $55,669 to $167,008 annually; median household income of $83,504
  5. Vermont (#19 nationally) – $55,153 to $165,460 annually; median household income of $82,730
  6. Maine (#30 nationally) – $50,961 to $152,884 annually; median household income of $76,442

Which state has the highest middle-class income range?

Massachusetts ranks as the state with the highest income range to be considered middle class, according to SmartAsset. Households there would need to earn between $69,900 and $209,656 annually. The state’s median household income is $104,828.

Which state has the lowest middle-class income range?

Mississippi ranks last for the income range needed to be considered middle class, according to SmartAsset. Households there would need to earn between $39,418 and $118,254 annually. The state’s median household income is $59,127.



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AARP report highlights scale and value of unpaid caregiving in Rhode Island

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AARP report highlights scale and value of unpaid caregiving in Rhode Island


“Nationally there are 59 million Americans who are providing care for a loved one and that is 49.5 billion hours of care annually. It’s valued at a trillion dollars,” said Catherine Taylor, the director of AARP Rhode Island; AARP, the nation’s largest non- profit, dedicated to empowering people 50 and older.

In Rhode Island, the report shows 155,000 people serve as caregivers, providing 111 million hours of care.

Barbara Morse reports on unpaid caregivers. (WJAR)

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“The total impact is $2.8 billion a year,” said Taylor.

It’s not just babysitting a loved one.

Catherine Taylor, the director of AARP Rhode Island, spoke with NBC 10’s Barbara Morse about the value of caregiving. (WJAR)

“People are doing a lot more nursing tasks, you know–wound care, injections and things like that and they’re doing a lot more intensive daily care, like bathing, and dressing and feeding than we used to,” she said.

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Its latest report–“Valuing the Invaluable.”

“The whole point of this report is to draw attention to how many family care givers there are and what the magnitude of what the need is for their support,” said Taylor.

That includes financial support and respite care.

AARP wants you to know this:

An older man using equipment in a gym. (FILE)

An older man using equipment in a gym. (FILE)

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In Rhode Island, temporary caregiver insurance or TCI is available to folks who qualify, for up to eight weeks.

There are federal tax credits you may qualify for. There is help.

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“All you have to do is call 211 and say you’re a family caregiver and they will connect you to all of AARP’S trusted information, including a Rhode Island specific guide on resources for caregivers,” she said.

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