Two months after setting a goal to permit 15,000 new homes within five years, Rhode Island housing officials have unveiled their road map to get there.
The vision is detailed in the Housing 2030 plan, which includes a call for the state to permit a minimum of 1,000 new homes priced below $400,000 each and build 1,695 new middle-market units. Additionally, the plan seeks to triple the number of accessory dwelling units (ADUs) permitted, increase multifamily homes by 50%, and finance 2,250 affordable rental units.
It’s an ambitious plan, Gov. Dan McKee acknowledged during a State House press conference with Housing Secretary Deborah Goddard Wednesday afternoon. But he said change is needed after decades of stagnation.
“When housing production does not meet demand, and it has not met demand in some time, it puts a roadblock in what we call the road to prosperity,” McKee said.
The 76-page plan by the Department of Housing is still in draft form. Public comment will be open online through May 23, after which state officials will consider making any changes before final approval. A final plan will likely be published in the fall, Goddard told reporters.
Housing Department spokesperson Emily Marshall told Rhode Island Current the 2030 plan is designed to ensure “that at least a certain number of units are created in each category.” More affordable homes may be added to the state’s goal based on ongoing housing needs, she added.
The Rhode Island Department of Housing’s plan notes home prices have increased 65% and rental prices have increased 60% since 2018, while wages have increased only 29%. From 2022-2024, less than 21% of new construction homes for sale were priced below $400,000, according to the 2030 plan.
All the while, few new homes have been permitted for construction. Between 2019 and 2023, fewer than 8,500 new homes received required state and local permits to begin construction in Rhode Island, according to a presentation from the Department of Housing.
A lot of the blame still lies on local zoning ordinances that favor single-family homes and prevent higher-density structures from being built. State leaders have sought to reduce the red tape through legislative action over recent years, but some towns just haven’t been on board.
Municipal leaders in Johnston, where about 7.9% of housing units are considered affordable, have pushed back against denser apartment buildings, citing concerns that an influx of families and students could strain local school systems and impact municipal budgets. Towns like Narragansett, where about 3.8% of housing units are considered affordable, have repeatedly blocked development of affordable multi-family homes because of potential impact on the “character” of the town.
So what can the state do to get more towns on board? Set housing targets that make sense for each municipality, according to the Housing 2030 plan.
“We have not taken a one-size-fits-all approach,” Goddard said.
The 2030 plan calls for the Department of Housing and the Division of Statewide Planning to review each community’s comprehensive plans — the guiding documents for each municipality’s zoning and land use. Cities and towns will be required to modify plans if they do not provide a realistic path forward for the achievement of housing production goals, according to the state’s proposal.
Community leaders will be required to provide annual progress reports to the Department of Housing, showing what policy changes they followed through on, how many homes were actually built, and explaining any setbacks or issues they ran into.
Carrot approach
Goddard told reporters her intention is for the state to reward communities that meet goals by giving them higher priority for state grants or infrastructure funds.
“It’s a carrot, but it’s a nicely disguised hammer in some way,” Goddard said.
Municipalities would also be provided with technical assistance on how to reform their local zoning codes and expedite permitting.
Randy Rossi, director of the Rhode Island League of Cities and Towns, said in a statement Wednesday that municipal leaders are firmly committed to supporting responsible housing development. “More housing can be built when policies reflect the community needs and financial and technical support is available,” Rossi said.
Philip Tedesco, CEO of the Rhode Island Association of Realtors, said the plan will rely on a willingness to collaborate.
“Local municipalities, legislators, and stakeholder groups will need to work together in determining revised zoning and development regulations, financial incentives, opportunities for revitalization, and more,” Tedesco said in a statement.
Goddard said she believed smaller towns will fall in line and that the state will meet its goal of 15,000 new homes.
“We’re going to have to keep pushing, but it’s doable,” she said in an interview.
HousingWorks RI Director Brenda Clement was a bit more skeptical. She said it may not be possible amid continued uncertainty over federal funding toward housing projects.
“A lot of what we’re funding are with recovery funding and that’s all going to disappear,” she said in an interview after the press conference. “I am glad there is a plan, but plans are only as good as our implementation of them.”
Rhode Island Builders Association CEO John V. Marcantonio said he believes the state’s plan for 15,000 new homes is possible if state and local leaders are committed to addressing the housing crisis.
“If the plan is to move forward, then it would be our objective to put the bodies in place to do that,” Marcantonio said in a phone interview. “There’s a lot of people that want to solve this problem — I think Rhode Island could be a leader on how to solve this issue.
This story was originally published by the Rhode Island Current.
