Why It Matters
Rhode Island’s capital city is moving to address its affordable housing shortage through a new tax policy that could lower financial barriers for developers building low-income housing in Providence. If passed, the Providence BUILD Act would restructure how eligible affordable housing developments are taxed, potentially unlocking new construction at a time when housing costs are pushing longtime residents out of the city.
Housing affordability has become one of the most pressing economic issues facing Rhode Island communities, with Providence residents — including working-class families, seniors, and young adults — facing increasing difficulty remaining in the city they call home.
What Happened
Providence City Council President Rachel Miller and Deputy Majority Leader Mary Kay Harris announced the Providence BUILD Act during a press event held Wednesday, April 1, 2026, outside an affordable housing development on Broad Street in Providence.
The ordinance would create a new tax stabilization structure for eligible affordable housing developments in the city. Harris and Miller were joined by affordable housing developers and community partners at the announcement, where both leaders emphasized the need to remove systemic obstacles that are slowing construction of affordable units.
“We are in the middle of a housing crisis that is pushing out the very people who make this city what it is: working-class families, seniors like myself, young people just trying to stay here and build their life,” Harris said at the event. “And when you listen to working people, and when you talk to the folks actually trying to build affordable housing, you start to see where the system is breaking down.”
Under current Rhode Island law, low-income housing is taxed at a special rate in which municipalities assess properties at a rate equal to 8% of their gross scheduled rental income — a provision commonly referred to as the “8 Law.” Council leaders have indicated the BUILD Act would modify how that structure applies to new eligible developments, offering more favorable tax treatment to incentivize construction.
By the Numbers
Key figures surrounding Providence’s housing challenge and the proposed legislation include:
8% — The current tax rate applied to low-income housing under Rhode Island’s existing “8 Law,” calculated as a percentage of gross scheduled rental income.
2 — The number of City Council leaders who jointly introduced the BUILD Act proposal: Council President Rachel Miller and Deputy Majority Leader Mary Kay Harris.
1 — The number of press events held to formally launch the proposal, staged outside an existing affordable housing development on Broad Street to underscore the need for more units citywide.
Providence has faced a prolonged affordable housing shortfall, consistent with statewide trends showing housing supply failing to keep pace with demand across Rhode Island’s urban centers.
Zoom Out
Providence’s proposed BUILD Act reflects a growing national trend of municipal governments using tax incentive structures to accelerate affordable housing construction. Cities across the country — from Boston to Denver to Atlanta — have introduced or expanded tax abatement and stabilization programs designed to reduce upfront costs for developers building income-restricted units.
Rhode Island has been grappling with housing affordability at the state level as well. Lawmakers and administrators have increasingly prioritized housing policy as a driver of economic competitiveness and resident retention. Rhode Island’s Senate confirmed Stefan Pryor as Commerce Secretary after an eight-month interim period, with housing development among the economic priorities facing his department.
The state’s broader political landscape — including an independent gubernatorial campaign launched by Ken Block — has placed quality-of-life issues like housing affordability at the center of upcoming electoral conversations heading into the 2026 election cycle.
What’s Next
The Providence BUILD Act will advance through the Providence City Council for formal review and a vote. Council leadership has not yet announced a specific timeline for committee hearings or a floor vote, though the public announcement signals the proposal has the backing of key council figures needed to move forward.
Community stakeholders and affordable housing developers who participated in Wednesday’s press event are expected to engage in the legislative process as the ordinance moves through council. If passed, the city would then need to establish eligibility criteria and an administrative process for developers seeking the new tax stabilization designation.
Providence residents and advocacy groups are expected to weigh in during the public comment phase as the BUILD Act proceeds through formal legislative review.