Housing advocates advance bill to fund rental subsidy program to support low-income Rhode Islanders
"In many cases, the state ends up spending far more money responding to the consequences of homelessness than it would by simply ensuring someone has a stable housing in the first place."
“Our state has made meaningful progress in recent years to increase housing production, but Rhode Islanders with the lowest incomes who have the greatest need for affordability and stability face the most acute shortage of available homes,” said Katie West, Director of Strategic Partnerships at the Housing Network of Rhode Island, at a press conference on Tuesday. “The gap between incomes and rents is too wide for households at or below the poverty level, and for many low-income and disabled people experiencing homelessness, even newly built affordable units are out of reach without additional support.
“That is why a rental subsidy is such an important part of a functioning housing system. Across the country, states are increasingly recognizing that relying on federal resources alone is not enough to meet the scale of this challenge. State-funded rental subsidy programs are one of the most effective tools available to help ensure that deeply affordable housing is actually accessible to the people who need it most. And the state-funded rental subsidy legislation we’re announcing today represents an important step toward building that tool here in Rhode Island.”
Here’s the press conference video:
People following the Providence City Council’s efforts to pass rent stabilization [See: Providence City Council introduces rent stabilization ordinance and Dispelling myths, the Providence City Council continues to advance rent stabilization] might have a distorted view of rental subsidies. During public comments, many landlords have proposed rental subsidies as an alternative to rent stabilization. What form of rental subsidy the landlords are proposing is unclear, but it seems they see these subsidies as primarily benefiting landlords’ bottom lines by subsidizing ever-increasing rents, with stabilizing housing for low-income renters as a secondary concern.
That is not what is being proposed here. This bill is an effort to subsidize renters, not landlords. House Bill 7803 and Senate Bill 2681 would create a state-funded rental subsidy for those experiencing or at-risk of homelessness, who are extremely low-income or disabled, with a need for supportive services. The subsidies would be applied to units that meet the requirements of the national standards for physical inspection of real estate (NSPIRE), standards established by the U.S. Department of Housing and Urban Development, which set uniform health, safety, and habitability requirements for federally assisted housing inspections.
The bill still needs to be thoroughly vetted with robust public comment.
“Families are struggling to keep up with rent. Older adults are worried about losing the homes they’ve lived in for years, and far too many of our neighbors are being pushed into homelessness,” said Representative Scott Slater, the House sponsor. “When someone is living only on SSI or even SSDI, there is simply no way to pay rent without additional support. That’s where this bill comes in.1 H7803 creates a state-funded rental subsidy that can be paired with housing development, allowing tenants to pay no more than 30% of their income toward rent, so that the housing we are building can serve the populations who need it most, not just in theory, but in reality. Just as importantly, this legislation represents the first steps towards building a durable, long-lasting funding stream to support deeply affordable housing in Rhode Island for populations most likely to be excluded from the housing market: Extremely low-income people with disabilities experiencing homelessness.
“If we are serious about ending homelessness, we need tools built to last, not short-term fixes. Housing is a foundation that allows people to work, stay healthy, and participate meaningfully in their communities. This bill moves us closer to a system where the most vulnerable Rhode Islanders are not left behind.”
“S2681 establishes a state-funded rental subsidy program designed to help Rhode Islanders experiencing homelessness or at serious risk of homelessness access stable, permanent housing,” said Senate sponsor Melissa Murray. “This is not only the right thing to do, but it’s also the fiscally responsible thing to do. We know that homelessness is extraordinarily expensive for our public systems. When people don’t have stable housing, they’re far more likely to rely on emergency shelters, hospital rooms, crisis behavioral health services, and other costly interventions. This is especially true in the case of those who are the most vulnerable: those experiencing homelessness who also have disabilities. In many cases, the state ends up spending far more money responding to the consequences of homelessness than it would by simply ensuring someone has a stable housing in the first place. Providing targeted rental relief subsidies can help break that cycle.
“Stable housing reduces pressure on emergency rooms, improves health outcomes, and allows people to focus on work, recovery, and stability. It’s a proactive investment that helps prevent much higher public costs down the road - public costs that we are paying for right now. This legislation is designed to be strategic by pairing these rental subsidies with housing developments. We can ensure that deeply affordable units remain available long-term for individuals and families exiting homelessness. And importantly, this program represents the beginning of a durable, long-term tool for housing in Rhode Island, one that future legislatures can continue to strengthen as we build a more stable and effective housing system for all.”
“Every day, our organization works with individuals and families who are experiencing homelessness or who are on the brink of losing their housing,” said Michelle Wilcox, president and CEO of Crossroads, Rhode Island, speaking in support of the legislation. “What we know on the ground reinforces something we know across the country: The biggest barrier to ending homelessness is not a lack of effort or partnership. It’s a lack of housing that people with the lowest incomes can actually afford. Rhode Island has taken important steps in recent years to increase housing production - from zoning reforms and development streamlining to the historic investment in the housing bond and creation of a state low-income housing tax credit.
“These are critical investments that are helping move our state in the right direction, but they don’t solve the entire problem. For households living on extremely low incomes, often at or below 30% of the area median income, even housing labeled affordable is still out of reach. The gap between what people can afford and housing costs is exactly why these rental subsidies are so essential. For many years, federal housing vouchers and continuum of care programs have helped bridge that gap and move thousands of Rhode Islanders from shelters into stable housing. But those resources have never been enough, and today they are increasingly uncertain. That’s why the legislation being discussed here today is so important.
“A state-funded rental subsidy program would give Rhode Island something we don’t currently have: a reliable, locally controlled tool to ensure that people with the greatest barriers to housing stability are not left behind. It would ensure that tenants pay no more than 30% of their income toward rent and help Rhode Island fully utilize the affordable housing we’re already investing in. At Crossroads, we see every day that when people have access to stable housing, everything changes. Health improves. Employment becomes possible. Families can begin rebuilding their lives. And the results are clear.
“When people are connected to stable housing with the right supports, as many as 96% will never return to homelessness. Housing is the only proven solution to homelessness. If we want to reduce homelessness in Rhode Island meaningfully, we have to ensure that people with the lowest incomes can actually afford the housing we are building. This legislation is an important step towards creating a more stable and sustainable housing system for Rhode Islanders. And at its core, it reflects something even more fundamental, a shared belief that in Rhode Island, everyone deserves the stability, dignity, and safety of a place to call home.”
“I speak today as a developer, an owner, a manager, and as somebody deeply involved in Rhode Island’s homeless response system,” said Charlie Thomas-Davison, Director of Real Estate Development with the Women’s Development Corporation, and chair of the Rhode Island Continuum of Care Board. “I do this because I care about building a system that actually works for the people who need it the most. I’ve seen how vulnerable housing development can be when it relies on federal funding. About six months ago, the Rhode Island Continuum of Care and Women’s Development Corporation were awarded $7 million from HUD to develop 14 units of permanent supportive housing for families experiencing homelessness and fleeing domestic violence.
“That award was highly competitive. It included capital, multi-year rental subsidy, and services support, a rare opportunity. Take my word for it. That award was rescinded, and it now faces uncertainty as we’re challenging it in court. And that highlights the need for stable, state-controlled resources for the critical task of affordable housing development. Over the past several years, Rhode Island has made significant progress in supporting the development of new affordable housing. Programs like the state low-income housing tax credit, coupled with the state housing bond funded at historic levels, have given us powerful tools to finance and build new homes. But those programs primarily support housing construction. They do not provide the ongoing rental subsidy necessary to make affordable housing affordable for households with extremely low income, particularly those with disabilities and at risk or experiencing homelessness. Unfortunately, affordable housing is still not affordable for everyone.
“These homes simply cannot exist without a rental subsidy. Rhode Island has set an ambitious goal through the Housing 2030 plan: to create 15,000 new homes, including 2,200 more affordable rental homes. And of that, 375 for permanent supportive housing and 500 additional for extremely low income are to be developed in the next four years, by the end of this decade, which, believe it or not, is four years. Programs like the one being proposed today are really the missing piece that will allow Rhode Island to deliver on the 2030 housing commitments we’ve made. By providing project-based rental assistance that can be paired with housing developments already in the pipeline, this legislation gives developers and housing providers the financial resources needed to dedicate units to households with extremely low income. It also supports the development of new projects designed to intentionally serve individuals exiting homelessness and those facing the greatest barriers to housing stability.
“Ultimately, as others have said, the solution to homelessness is housing, but housing development is more than building structures. It’s about building a system that works, and a system that works provides safe, stable housing and is accessible to our most vulnerable neighbors. Right now, the system doesn’t work. With this legislation, Rhode Island takes a critical step toward a system in which the homes we build can actually serve the people who need them most. And for that, I am also grateful to the sponsors and partners who are working to make that possible alongside the rest of us.”
“One year ago, I was living in a tent and started advocating for people like myself,” said Don King, who has lived experience with homelessness. “Since that time, I’ve moved first into a motel program and then into a co-op living program, where I am extremely grateful to have a roof over my head, which I fight daily for because it’s costing over 70% of my income. This legislation will help address situations like this. I’ve said before that I didn’t, while I was growing up, aspire to come and share my lowest points with everybody, but here I am, sharing one of the lowest points of my life.
“Health-wise, it beat the crap out of me. I’ve been HIV positive for over 45 years. I was 19 when I tested positive, and that put me on a journey of prejudice and stigma. It made me a fighter, that’s for sure. Now I stand before you, fighting for housing for all Rhode Islanders because many people are unhoused and sleeping outdoors in 9-degree weather, as we had this winter. I had the good fortune of helping to open an overnight shelter, and that really gave me a lot of joy, being able to welcome people nightly.
“I can’t say how much this bill will mean to a lot of people, because it’s a long journey to get housed and then keep it. I know people who have been in and out, in and out, because they can’t afford it. How I’m doing it right now, I have no idea. I work, but working within the shelter system, I was hospitalized three times this year because I can’t be around it. While my health is good - I’m undetectable and non-transmissible - 45 years of living have left my immune system shot, which I don’t quite understand. I belong to some national study groups for people who have been around for 45 years. My levels went through the floor while I was sleeping in a tent.
“In 45 years, I’ve never had as many complications as I have during the year I was outside. That’s my nutshell of a story. There are a lot of twists and turns in it, but I can’t say enough how much this will help people get back on their feet and keep their housing, because it can be a vicious cycle of getting housed and then not being able to keep it.”
“What we’ve heard today reflects something many of us in the housing sector and advocacy community innately know: Homelessness is not inevitable,” said Katie West. “It is the result of a structural gap between incomes and housing costs. It is the result of a breakdown in other systems of care, poverty, and policy choices. The good news is we know what the solutions are to addressing those gaps. We can make different policy choices. We have developed the tools. We only have to choose to commit to allocating resources for deployment and to hold ourselves and those in policymaking roles accountable when we fall short. Our call to action today is simple. We urge members of the General Assembly to support House Bill 7803 and Senate Bill 2681, and to work together to make this program a reality this session.
“The Rhode Islanders that this legislation will impact do not have time to wait. The political headwinds from Washington may be blowing in increasingly unfavorable and sometimes cruel directions that hurt our most vulnerable residents, but with this legislation, we can take action to push back and make an investment that will support safe, healthy, affordable homes and thriving communities in our small but mighty state.”
Footnote: SSI (Supplemental Security Income) and SSDI (Social Security Disability Insurance) are both federal programs for people with disabilities administered by the SSA (Social Security Administration).