EAST PROVIDENCE – On Tuesday, February 17th the East Providence City Council gave final passage to a new tax exemption that will create more affordable housing opportunities throughout the city.
The tax exemption, known as the live/work affordable deed restricted properties classification, will now give those who own a residence in which they own and operate a business within the same premise they live, a tax exemption.
For residents to be eligible, they must own an affordable housing deed-restricted property, live in the property as their primary residence and must own and operate the business located within the same parcel.
An affordable housing deed-restriction is defined by City Ordinance as “a legally recorded restriction, recorded within the City Clerk, that limits occupancy or resale of the unit to low- or moderate-income households for a period of 30 years or more”.
“One of the things I hear regularly from those in East Providence and across the state is the lack of affordable housing,” Mayor Bob DaSilva said. “The City of East Providence continues to lead the way by working with nonprofit organizations and creating new legislation and zoning laws to find creative ways to bring more affordability to our city.”
“This ordinance creates an opportunity to develop more mixed-use affordable housing that offers owners the ability to gain financial stability and growth,” DaSilva added.
“The proposed exemption aims to help with local housing challenges,” Council President Bob Rodericks said. “Affordability, whether renting or buying, is one of the main concerns I hear from the community. People have enough to worry about with the high energy costs in our region, combined with other housing expenses.” This doesn’t solve the entire housing crisis, but it is a tool that can help", Rodericks added.
Under this new policy, properties with deed-restricted affordable residential live/work units will be eligible for an exemption through an application process, granting qualified owners a reduced annual tax bill. These properties will not be taxed entirely at the commercial rate. Instead, the owner-occupied residential portion will be taxed at the residential rate and will also qualify for any residential exemptions offered by the city. This change helps preserve the affordability of these unique affordable live/work spaces and supports the city’s commitment to accessible housing opportunities.
“It is great to lead the charge to promote this aspect of live/work properties,” Council Vice President Frank Rego said. “This legislation now gives East Providence residents the opportunity to run a business and have a place to call home at an affordable rate.”
“This is just another example that shows East Providence is a leader in housing throughout the state, as we continue to redevelop blighted properties and build new.”
