52231 : Amending Chapter 13 “Housing” - “The Providence Rent Stabilization Act”

This ordinance, "The Providence Rent Stabilization Act," amends Chapter 13 of the City of Providence's Code of Ordinances to establish a system for regulating residential rent increases. It aims to bring greater steadiness to the rental market by setting clear standards for rent adjustments, ensuring landlords receive a fair return while protecting tenants from unreasonable increases.

Key Provisions:

• Rent Control: Limits annual rent increases to a Standard Increase of 4%. Landlords cannot increase rent more than once per year, typically on the rental agreement anniversary.
• Base Rent: Establishes the lawful rent charged 180 days prior to the ordinance's effective date as the base rent for existing units. New construction is exempt for 15 years.
• Property Tax Adjustments: Allows landlords to pass through 50% of documented property tax increases exceeding 5%, with a combined cap of 10% annual increase (including the Standard Increase).
• Above-Standard Increases: Landlords can petition the Residential Rent Regulation Board for increases above the Standard Increase for capital improvements, major renovations, or to ensure a fair return, with a general cap of 10% annually, though exceptions can be made for confiscatory situations.
• Vacancy Control: When a unit becomes vacant, the base rent remains the same, though landlords may apply one Standard Increase for the vacancy period.
• Utilities: Utilities included in rent are subject to rent increase limits. Separately billed utilities can only be charged at actual cost. Shifting utility responsibility from landlord to tenant requires a corresponding reduction in base rent.
• Tenant Protections: Prohibits retaliation against tenants for exercising their rights and establishes a complaint and hearing process through the Rent Board. Waivers of tenant rights are void.
• Exemptions: Excludes certain types of housing, including new construction (for 15 years), hotels, employee housing, and owner-occupied properties with 1-3 units where the owner resides.
• Administration: Establishes a Residential Rent Regulation Board and an Executive Director to administer and enforce the ordinance, with a dedicated fund for its operations.

Effective Date: Upon passage.