Housing Initiatives Outlined by Rhode Island’s Speaker Shekarchi in Congressional Testimony

October 9, 2024
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The U.S. Senate Budget Committee convened a hearing on September 25 regarding The Costs of Inaction: Economic Risks from Housing Unaffordability. Five expert witnesses provided testimony, including Speaker Joseph Shekarchi, who has served in the Rhode Island House of Representatives since 2012, became House Majority Leader in 2016, and was elected as Speaker in 2021. “Over the last four years, working with my colleagues in state government, we have passed almost 50 new housing laws,” he said during his testimony.

In 2021, the State of Rhode Island established a Commission on Housing Affordability and a Commission on Land Use, both of which Speaker Shekarchi acknowledged as vital to developing the state’s housing legislation. “We are listening to the experts, following the data, and making real, sustained progress,” he said.

During his testimony, Speaker Shekarchi highlighted several of Rhode Island’s recent housing initiatives. “The legislation we’ve passed has focused on reducing barriers to development, eliminating red tape and redundancy with the goal of increasing housing production,” he said. Those examples include the following:

  1. A permanent revenue stream for the development of affordable housing
    Legislation passed in 2021 amended the state’s real estate conveyance tax to create an incremental tax on real estate transactions exceeding $800,000, which would fund a Housing Production Fund to support the development and preservation of affordable housing in Rhode Island.
  2. A new state-level Department of Housing and Secretary of Housing cabinet position
    The legislature created a new position for a Secretary of Housing in 2022, and established a new Department of Housing, effective January 1, 2023. The new department will lead the development of the State Housing Plan (Housing 2030).
  3. A dedicated court calendar to streamline housing appeals
    “Developers complained that some communities were using the appeals process as a stalling mechanism,” he said. “For developers, time is money.” To minimize delays in the development process, H.B. 6060 establishes a separate land use calendar, presided over by the superior court, and mandates that appeals shall be completed within 60 days of filing. Previously, only property owners would appeal to the superior court, while developers appealed to the State Housing Appeals Board; however, the legislature passed H.B. 6083 to direct appeals from both parties to the superior court.
  4. Legalizing accessory dwelling units (ADUs)
    “Rhode Island’s legislation allows ADUs by right when meeting certain requirements, eliminating zoning approval and additional costs,” he said. The legislation, H.B. 7062, was signed into law in June 2024. “ADUs are a great option for seniors wishing to age in place, for recent graduates looking for cost-effective housing, and for disabled individuals to live independently in proximity to family members. ADUs offer gentle density by adding additional housing units to existing blueprints without changing the character of a neighborhood.”
  5. Expanding access to manufactured housing
    H.B. 7980, passed in 2024, legalizes manufactured homes wherever single-family homes are allowed by zoning.
  6. A first-time homebuyer program
    Rhode Island created a Statewide Down Payment Assistance Grant using $30 million of American Rescue Plan Act (ARPA) State Fiscal recovery funds. The program provided $17,500 to eligible first-time homebuyers. “It was a success, resulting in the participation of 1,672 homebuyers, 46 percent of whom are minorities and 47 percent of whom are female-headed households,” said Speaker Shekarchi.
“ I respectfully request that Congress provide states with greater funding mechanisms and grant opportunities to develop more housing and to foster public private partnerships. I would also like to see further expansion of financial assistance for renters, like rental vouchers, as well as down payment support for first-time homebuyers. ”
— Speaker Shekarchi
Rhode Island House of Representatives

This hearing came a day after two Rhode Island Congressmen – Senator Whitehouse, who chairs the committee, and Senator Jack Reed – cosponsored new federal housing legislation. The Affordable Housing Construction Act of 2024 aims to enhance the low-income housing tax credit (LIHTC), a primary funding source for affordable housing in the United States.

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